Telkom has confirmed that Swiftnet leases co-location space to major mobile network operators and boasts approximately 4,000 locations across South Africa.
This development mirrors a broader trend in the South African telecom industry, as Vodacom remains the sole company retaining tower ownership, following decisions by MTN South Africa and Cell C to divest their tower infrastructure in favor of focusing on core business operations. In June 2022, MTN South Africa finalized a sale and lease-back agreement with IHS Holding Ltd. for 5,700 tower sites, while American Tower Corporation acquired around 960 of Cell C’s existing towers.
Serame Taukobong, Telkom Group CEO, emphasized that this move “signifies a pivotal moment in Telkom’s journey toward unlocking shareholder value and streamlining our focus on core business operations.” He added, “Beyond the financial implications, this transaction ensures seamless continuity for our related businesses, particularly Telkom Consumer and Openserve, by guaranteeing continued access to Swiftnet’s infrastructure under mutually beneficial terms.” However, final approval from both shareholders and regulators is still pending for the transaction to proceed, despite the consortium planning to finance the acquisition of Swiftnet with equity and third-party debt.
Since November 2023, Telkom has been generating revenue by selling its towers to investors, including a Black Economic Empowerment partner led and managed by a reputable private equity firm. Furthermore, compliance with Johannesburg Stock Exchange (JSE) requirements necessitates the telco to provide public updates every 30 business days.
Source: Techpoint