It is believed that Vodacom is in discussions with Telkom on a wireless network-sharing deal as a replacement for former partner Cell C.

JOHANNESBURG - It is believed that Vodacom is in discussions with Telkom on a wireless network-sharing deal as a replacement for former partner Cell C. 

According to Bloomberg, the Vodafone Group unit lost about R1 billion of annual revenue when Cell C moved over to the MTN Group earlier this year. 

Telkom, almost 40 percent owned by the government, is looking for ways to add scale and compete more effectively with its three larger rivals. The majority of the business is made up of fixed-line services, according to Bloomberg. 

It was reported that Cell C had 16 million subscribers and Telkom 5.2 million.

Last week, Telkom said that communications regulator Icasa's new plans to bring down call termination rates again would penalise Telkom more than its competitors. 

Telkom said: "Icasa is proposing that fixed termination rates (FTRs) should fall by 70 percent compared with a reduction of only 31 percent in base mobile termination rates (MTRs) and that MTR asymmetry which supports new entrants should be reduced."

"This decision penalises Telkom much more than it does our competitors, although we are the smallest provider of mobile services in the market."

- BUSINESS REPORT ONLINE