Telkom lost USD1bn in Nigeria
BUSINESSBy BiztechAfrica - July 25, 2011, 4:20 p.m.
South Africa’s Communications Minister Roy Padayachie says SA’s Telkom lost USD1 billion on its Nigerian unit, MultiLinks.
Parastatal Telkom took over the MultiLinks operation to expand its African footprint in 2009 and has suffered serious losses from it.
It has been trying to offload the division for several months.
In response to questions in the SA Parliament about why the division had suffered these losses, Padayachie said the reasons included Telkom’s underestimation of the highly competitive Nigerian telecoms market and the use of code-division multiple access (CDMA) technology in a markets dominated by GSM technology.
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