Telkom to sell its towers for R6.75 billion

Telkom shareholders have given the green light to the sale of its masts and towers business, Swiftnet, for R6.75 billion. This move aligns with Telkom’s strategy to unlock value and streamline operations by focusing on its core business areas.

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Swiftnet, a leading player in South Africa’s tower infrastructure market, owns and operates roughly 3,900 towers and masts. These structures generate revenue by leasing space to mobile network operators, allowing them to provide network coverage to their customers.

A consortium of investors, including an infrastructure fund managed by Actis LLP and a vehicle owned by Royal Bafokeng Holdings (BEE partner), will acquire Swiftnet.

This sale comes as Telkom navigates a changing market. While the company saw some growth in data connectivity and NGN (Next Generation Network) products, traditional voice and data revenues continue to decline. However, the migration to NGN services is positive, with NGN revenue growth offsetting traditional revenue decline. Telkom’s mobile subscriber base also grew by 6.4%, demonstrating continued customer demand.

By selling its non-core tower business, Telkom frees up capital to invest in its core offerings, such as mobile and fixed-line networks, fibre rollout, and NGN services. This focus on core competencies positions Telkom for future growth in South Africa’s evolving telecommunications landscape.