According
to a report by Bloomberg, South African telecommunications provider
Telkom, is looking to cut costs on its mobile service offering by
selling off a section of mobile phone towers – in South Africa. B l o o m
b e r g cited that individuals with knowledge on the matter made the
reveal. According to Bloomberg’s source, who wished to remain a n o n y m
o u s according to Bloomberg, the sale could fetch as much as $500
million to $1 billion. The source revealed that Telkom is allegedly
working with consulting firm Accenture PLC on the sale, which may
attract tower operators such as IHS Holding Ltd. of Nigeria and Helios
Towers Africa, the people said. No final decision has been made and
talks may still falter, they said.
Bloomberg
continued the report by stating that carriers in emerging markets
including the Middle East and Africa are offloading towers. They cost
more to run in such regions than in other parts of the world because of
the need for backup generators and batteries to guard against power
failures.
Kuwait’s
largest wireless carrier, known as Zain, is working with Citigroup Inc.
on the possible sale of towers in two Gulf countries, people familiar
with the matter said last month. IT News Africa has reached out to
Telkom regarding the matter; however, no comment has yet been obtained
from Telkom. Update: According to a spokesperson at Telkom: “The report
is speculative; however, Telkom has stated many times in the past (most
recently at the Company’s interim results), that Telkom is continuing
its review of all properties, assets and infrastructure within the
company’s portfolio. This review is considering a wide range from
potential options. The primary focus of the review is to optimise the
use of our facilities and assets while also considering any potential
commercial opportunities.”
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