Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

4G/5G

Will Vodacom Strike Roaming Deal With Telkom?

Article Image
South Africa's largest mobile operator, Vodacom, is believed to be in discussions with the country's fourth mobile operator, Telkom SA, about a deal that would allow Telkom's mobile customers to roam onto Vodacom's network, according to a Bloomberg report.

The move would make sense: Vodacom did have Cell C, the country's third mobile operator, signed up to a roaming deal, but Cell C has now struck an alternative deal with Vodacom's main rival, MTN. (See Cell C boosts subs & sales but not everyone's happy and Cell C Strikes Roaming Deal Across South Africa With MTN.)

Now Vodacom has a hole in its revenues that Cell C's roaming fees used to fill, so signing a deal with Telkom, which has about 5.5 million mobile customers, makes financial sense. But it's likely Vodacom would need to offer a better service than it did to Cell C -- that roaming arrangement did not include seamless call handoff between the cell sites of the two operators and did not include 4G service coverage. Cell C is getting both of those as part of its roaming deal with MTN.

If Vodacom was to strike a deal with Telkom, it would not only drive revenues for the market leader (47% market share according to research house Ovum) but make Telkom more attractive to potential new customers and help boost its market share, which currently stands at less than 6%.

Telkom, meanwhile, is unhappy with a decision announced by the Independent Communication Authority of South Africa (ICASA) concerning changes in termination rates. (See Telkom Slams ICASA's Termination Rate Ruling.)

— Ray Le Maistre, Editor-in-Chief, Light Reading for Connecting Africa.

Innovation hub

Story

Hot startup of the month: Nigeria's Tech Herfrica

Connecting Africa's hot startup is Nigeria's Tech Herfrica, a social impact organization that focuses on the digital and financial inclusion of women and girls in rural areas of Nigeria.

Story

Omdia View: February 2024

Highlights in February 2024 in the Middle East and Africa included 5G launches in Senegal and 5G trials in Egypt as well as Kenya's first 5G MVNO. Airtel also launched a new wholesale connectivity business while MTN and Huawei are planning a joint Innovation Technology Lab in South Africa – that and more in this month's Omdia View.

More Innovation hub

Latest video

More videos

Partner perspectives

All Partner Perspectives

Sponsored video

More videos

Industry announcements

More Industry announcements

Upcoming events

Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Guest Perspectives

Story

Omdia View: February 2024

By Omdia Analysts

Highlights in February 2024 in the Middle East and Africa included 5G launches in Senegal and 5G trials in Egypt as well as Kenya's first 5G MVNO. Airtel also launched a new wholesale connectivity business while MTN and Huawei are planning a joint Innovation Technology Lab in South Africa – that and more in this month's Omdia View.

Story

Omdia View: January 2024

By Omdia Analysts

Highlights in January 2024 in the Middle East and Africa included a $200 million fintech deal between MTN and Mastercard as well as 5G network trials by Telecom Egypt – that and more in this month's Omdia View.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002