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Telkom SA Limiteds joint venture, Vodacom, to launch operations in Mozambique

Vodacom Group (Proprietary) Limited (Vodacom), in which Telkom has a 50% shareholding, today announced that it plans to launch its cellular network operation in Mozambique within the next eight months. The operation will trade as Vodacom Mocambique and will be majority-owned by Vodacom, with local partners, Emotel, holding a minority stake.

The decision follows the successful conclusion of a 12-month long negotiation of both an interconnection agreement between Vodacom and the Mozambican fixed-line telecommunications operator, TDM, and its mobile phone subsidiary, mCel, and the required separation of TDM and mCel.

Vodacom is targeting a 40% market share after two years in operation in a total market estimated to grow to 2 million mostly prepaid customers over the next 10- years. Vodacom has projected a maximum capital investment of US$260 million into the operation.

Johannesburg
25 August 2003