Rain Proposes Merger With Telkom, Calls for 3rd Largest Mobile Operator to Abandon MTN Takeover

• Data provider, Rain, has set its sights on Telkom after MTN announced its plans to take over the third largest mobile operator
• The company formally requested a merger with Telkom on Thursday, 11 August and says it will benefit both parties
• Rain's CEO Brandon Leigh also wants to enter the cellular network by combining the resources of both companies

JOHANNESBURG - Telecommunications giants Rain and MTN are seemingly at war over Telkom. The data provider, Rain, formally requested a merger with Telkom on Thursday, 11 August.

This would mean that Telkom would have to choose between being bought by Africa’s largest mobile operator or merging with a relatively new brand, The Daily Maverick reported.

CEO of Rain Brandon Leigh believes that if the two companies merge, it will benefit Telkom’s financial difficulties. He said the company has adequate funding for its rollout and growth and assumes that Telkom has the same.

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The companies would still have to agree on the details surrounding the proposed merger. Leigh believes that the partnership with be beneficial in several ways.

The CEO said Rain also wants to enter the cellular network by combining the resources of both companies. In addition, Leigh said the merger would build Telkom Mobile’s success in 4G and 5G, News24 reported.

South Africans react to the Telkom bid:

@Emmanovich1222 said:

“Rain is very good and affordable they should expand to other small towns and work on their bad signal when the weather is not good.”

@CarolSchoeman3 commented:

“Bad idea. Everyone I know is complaining about Rain.”

@MrHololo posted:

“I don’t care as long as is not going to affect R250 per month 11 pm to 18:00 next day data.”

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@NICKEYS18 added:

“I don’t like MTN data counter speed notification which runs out quickly and if they buy Telkom then I’ll move away from both.”

MTN sets its sights on SA’s 3rd largest mobile operator, Telkom, netizens unimpressed by bid

In a related matter, Briefly News also reported Africa’s biggest mobile network, MTN, plans to take over Telkom. The companies released notices stating that discussions into the acquisition are underway.

Telkom is the country’s third largest mobile operator, and its shares skyrocketed to 28% after the companies made the announcement.

Source: Briefly News