Cell C and Telkom considering consolidation options

Local media reports have suggested tentative discussions have been held between South Africa cellco Cell C and fixed incumbent Telkom regarding consolidating the mobile market.

Telkom used to own a stake in Vodacom, but sold it in 2008 when Vodafone raised its holding to 65 per cent. It later decided to re-enter the mobile market and now owns its own mobile network, Telkom Mobile – previously known as 8ta.

In an interview with a local radio Cell C CEO Alan Knott Craig said: “Whether it will happen or not, I don’t know. In my personal capacity, I think consolidation is one way to solve a lot of the problems.”

Cell C has recently had a fresh injection of funding from its majority shareholder, and also raised fresh debt to fund network expansion.