Telkom, MTN in talks over radio access network

Johannesburg - Telkom remained in discussions with MTN South Africa over an agreement which will result in MTN assuming responsibility for the operation of Telkom’s radio access network. Telkom, Africa’s largest fixed-line services provider, issued a further announcement yesterday cautioning shareholders to exercise care when dealing in the company’s securities. The transaction, which includes the potential extension of an existing roaming agreement between the companies to include bilateral roaming, would have a material effect on Telkom shares if successfully concluded. The company has embarked on a cost-cutting programme. Shedding costs related to its loss-making cellphone start-up is a motivator for the talks. Telkom will publish its financial statements for the year to March on or about June 13. The stock climbed 0.34 percent to close at R38.25 on the JSE yesterday. – Asha Speckman