Kelvin Bowoto
Telkom said that Swiftnet rents co-location space to major mobile network carriers and has around 4,000 locations in South Africa.
This development indicates a trend in the South African telecom business. MTN South Africa and Cell C decided to sell off their tower infrastructure to focus on their core business operations, leaving Vodacom as the only company holding tower ownership.
Telkom launches six T-Connect electric vans to enhance customer service in South Africa. In June 2022, MTN South Africa struck a sale and lease-back agreement with IHS Holding Ltd. for 5,700 South African tower sites. At the same time, American Tower Corporation acquired around 960 of Cell C’s existing towers through its South African subsidiary.
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Telkom Group CEO Serame Taukobong said that this development “marks a pivotal moment in Telkom’s journey towards unlocking shareholder value and streamlining our focus on core business operations.”
“Beyond the financial implications, this transaction ensures seamless continuity for our related businesses, particularly Telkom Consumer and Openserve, by guaranteeing continued access to Swiftnet’s infrastructure under mutually beneficial terms,” he went on to say.
Telkom joins with police to combat cable theft in South Africa. While the consortium plans to finance Swiftnet’s acquisition with equity and third-party loans, shareholder and regulatory permission are still required for the transaction to continue.
Telkom has been making money by selling its towers to investors, “including a Black Economic Empowerment partner, led and managed by a reputable private equity firm,” since November 2023. Meanwhile, the Johannesburg Stock Exchange (JSE) requires the telco to keep the public updated every 30 working days.
Techrectory with Agency Report.
