South Africa's Vodacom, Telkom agree to share networks

A branch South African mobile communications provider Vodacom in Cape Town. [Photo: Reuters]

JOHANNESBURG- South African telecoms firm Vodacom said on Wednesday it had entered into a roaming and facilities leasing agreement with Telkom, South Africa’s biggest fixed-line operator.

Vodacom said the multi-billion-rand agreement would allow Telkom customers to roam on Vodacom’s. It did not specific the value of the deal.

“This partnership between the country’s fastest growing networks will also result in reduced network deployment costs for Telkom and cost savings for Vodacom,” said Vodacom Group CEO, Shameel Joosub.

Telkom, which also operates data services, said the agreement would allow it to use Vodacom’s towers, antennas and shelters to build out its own network.

Telkom is looking to grow, having completed a turnaround in 2016 aimed at lowering costs and allowing it to better compete with wireless operators MTN Group and Vodacom, with a focus on mobile and broadband.

The company said it will phase out its current roaming agreement with MTN, which expires in June next year.