Telkom welcomes Competition Commission SA recommendation to approve BCX acquisition
Telkom and BCX today welcomed the recommendation by the Competition Commission
to approve Telkom’s proposed acquisition of Business Connection (BCX).
The Competition Commission has made the recommendation subject to the imposition
of certain conditions, to be met by both parties. Telkom and BCX remain
committed to the proposed transaction and will engage and work with the
necessary regulatory bodies as required.
“We believe the proposed acquisition will assist Telkom with its strategy
to grow beyond its core business of connectivity by expanding into ICT
services. This will enable our business to further enhance and grow
its existing offerings, while at the same time providing scale in IT services.
It will also help to reinforce the company’s core connectivity business
and enhance Telkom’s convergence strategy,” said Sipho Maseko, Telkom Group
Chief Executive Officer.
Maseko said the proposed transaction will leverage Telkom’s expertise
to further address the technology and telecommunications requirements of
all the company’s clients and customers in South Africa and elsewhere in
Africa.
The customer landscape for both Telkom and BCX has changed with only minimal
overlaps today and, as a combined entity, will offer a number of potential
benefits for stakeholders, the industry at large as well as advance the
interests of South Africa and its consumers.
Maseko also affirmed that Telkom intends to remain a long-term investor
in Business Connexion. Telkom has a strong commitment to social development
and ongoing transformation goals, including broad-based BEE and the ICT
Charter; it also supports the South African government’s objectives and
policies regarding transformation in the ICT sector.
For further enquiries, please contact:
|
Pynee Chetty
Senior Specialist: Media Relations
Group Communication
Tel:+27 12 642 1716
Mobile: +27 81 389 7874
Email: chettpr2@telkom.co.za
|
OR |
Leigh-Ann Francis
Specialist: Media Relations
Group Communication
Tel: +27 12 642 1728
Mobile: +27 81 391 4780
Email: francilm@telkom.co.za
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Telkom Park, The Apex
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ABOUT TELKOM:
Telkom is a leading communications services provider in South Africa.
We had consolidated operating revenue of R16.8 billion and normalised profit
after tax of R1, 683 million for the period ended 30 September 2015. Total
assets amounted to R41.9 billion and equity attributable to the owners
of Telkom to R23.5 billion as of 30 September 2015. The group generated
normalised free cash flow of R1.4 billion for the period ended 30 September
2015.
As of 30 September 2015, we had approximately 3.3 million telephone access
lines in service and 1,030,441 ports connected via MSAN access. We offer
business, residential and payphone customers a wide range of services and
products, including:
- fixed-line retail voice services using PSTN (Public Switched Telephone
Network) lines, including ISDN (Integrated Services Digital Network) lines,
and the sale of subscription based value-added voice services and calling
plans;
- fixed-line customer premises equipment rental and sales services both
voice and data needs and these include PABX, Computers, Routers, Modems,
Telephone handsets and other ancillary equipment;
- interconnection services, including terminating and transiting traffic
from South African mobile operators, as well as from international operators
and transiting traffic from mobile to international destinations;
- fixed-line data services, including domestic and international data transmission
services, such as point-to-point leased lines, ADSL (Asymmetrical Digital
Subscriber Line) services, packet-based services, managed data networking
services and internet access and related information technology services;
- Data Centre Operations includes e-commerce, application service provider,
hosting, data storage, e-mail and security services;
- W-CDMA (Wideband Code Division Multiple Access), a 3G next generation
network, including fixed voice services, data services and nomadic voice
services;
- mobile communication services, including voice services, data services
and handset sales through our mobile navbar-brand called Telkom Mobile;
- information and communication services including cloud services,
infrastructure services, workspace services, global service integration
management and hardware and network equipment sales locally, in seven African
countries, the UK and Dubai through Business Connexion Group; and
- other services including directory services, through Trudon (Pty) Ltd,
wireless data services, through Swiftnet (Pty) Ltd.
Convergence is one of our key strategic initiatives in building a sustainable
future for Telkom. We will lead the provision of converged services
in South Africa in support of our mission statement: Seamlessly connecting
people to a better life.