Telkom denies mobile arm merger rumours

Telkom South Africa has moved to quash speculation that its mobile arm 8ta will merge with rival player Cell C. In response to rumours in the local press that meetings had been held between senior executives of both companies, Telkom stated: ‘There has not been any formal approach between Telkom and Cell C. It will therefore be unwise and premature to speculate on the desirability to consolidate the two players.’ According to TeleGeography’s GlobalComms Database, Cell C claimed a 14.6% share of the South African mobile market at the end of June 2012, with 8ta accounting for 2.4%. At the same date, market leaders Vodacom and MTN had market shares of 47.2% and 35.8% respectively.