Rain Proposes a Merger with Telkom Amid MTN Talks

Rain, an African Rainbow Capital (ARC)-owned data-only network has recently disclosed that they have asked to make a formal request towards a merger with Telkom.

It should not, however, be at the expense of competition which promotes greater access for consumers to data at more affordable prices.

The proposed merged entity would create a formidable third major player to compete with what is effectively a duopoly in South Africa.

It is a logical alternative to simply selling to MTN and would also be consistent with the pro-competitive policies of government. The merger would bring together the considerable infrastructure and mobile businesses of Telkom and the successful new age 4G and 5G businesses of Rain.

Statements by Rain

If an offer or formal proposal is received from Rain, the board of Telkom will consider it in accordance with its legal obligations.

Statement by Telkom