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More Africa NewsMTN Group’s Mupita still sees ‘sense’ in Telkom acquisition

January 24, 2023by myles0

The Daily Investor reports MTN Group CEO Ralph Mupita as saying that he still sees benefits in a consolidation between MTN and Telkom South Africa, although he stopped short of confirming whether he intended restarting discussions over such a plan.

Recall that MTN walked away from talks with Telkom in October last year because the latter could not assure it that negotiations were exclusive and also amid concerns over securing antitrust approval for a deal which would have reduced the number of major South African mobile networks from four to three. However, Mupita is quoted as saying that he still sees a strategic rationale for a consolidation between the two companies, given that in his opinion having four mobile players in a market is unsustainable. ‘You don’t see the third and fourth players having the capacity to invest in their networks,’ he is quoted as saying, adding: ‘20 years ago, it was very different. Voice-centric networks did not require as much capital, which means you could have four to six players … Right now, with data networks, it is quite challenging for a number three. It is the case in Nigeria and Ghana.’

Source: Commsupdate

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