MTN keeps door open for potential Telkom deal amid market pressures

MTN has not ruled out a potential deal with Telkom, even though no active negotiations are underway, according to MTN Group CEO Ralph Mupita. He said the logic for consolidation in South Africa’s telecom market remains unchanged, particularly as operators face mounting pressure to invest in 5G networks and expand fibre services. The market, he argued, is unlikely to sustain four large mobile operators over the medium to long term without some form of structural change.

Mupita highlighted the benefits a merger could bring, including scale, cost efficiencies, spectrum optimisation, and the combination of mobile and fibre assets. Telkom’s extensive fibre infrastructure is particularly attractive, offering MTN a faster path to compete in the converged services space without building a full fibre network from scratch. The potential synergies could strengthen MTN’s position while enhancing service delivery across South Africa.

However, Mupita stressed that three critical conditions would need to align for any deal to proceed: regulatory approval, political support, and a commercially viable agreement between both parties. Historically, he said, these factors have rarely converged simultaneously, which is why past attempts at consolidation have not materialised. While MTN has not engaged advisers or entered into formal talks, the company remains open to revisiting the possibility should circumstances change.

Industry analysts note that a merger could reshape the telecom landscape by improving investment viability, reducing operational costs, and enhancing service quality. At the same time, consolidation would attract regulatory scrutiny given the market share a combined MTN–Telkom entity would hold. Despite these challenges, MTN’s strategy continues to focus on leveraging partnerships, acquisitions, and targeted investments to expand fibre connectivity and 5G coverage, keeping the door to Telkom open but conditional on the rare alignment of regulatory, political, and commercial factors.