South Africa’s Telkom and the state-owned entity Broadband Infraco are in talks over possible collaboration as part of the government’s restructuring of state-owned entities to remove duplication between the two entities, according to a media report. By Staff Writer
Business Day newspaper reported on Wednesday that this will be part of a rationalisation process of state owned entities by the Ministry of Telecommunications and Postal Services.
Minister of Telecommunications and Postal Services Siyabonga Cwele told Business Day in an interview that ‘as part of a rationalisation process, Telkom and Infraco were looking at how they could co-operate on infrastructure projects’.
Infraco, which was created to build a national telecommunications network backbone to compete with Telkom, has been underperforming for years and last year asked the government for R1bn funding.
Telkom has the biggest fibre network in the country covering more than 147,000km and Infraco has a 14,000km footprint of fixed-line infrastructure.
The state owns 40% shareholding in Telkom and 74% interest in Infraco.