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MTN Group, Africa’s largest telecom operator, under the leadership of Zimbabwean executive Ralph Mupita, has ruled out building a standalone fiber-to-the-home network and will instead look at partnerships or acquisitions “at the right price and time,” for its home business.
The decision highlights the company’s focus on capital efficiency as competition with rival Vodacom intensifies in one of Africa’s most dynamic broadband markets.
Telkom back in the spotlight
Group President and CEO of MTN, Ralph Mupita, said at a Sept. 5 roundtable meeting that it “would not be wise” to replicate fiber assets already laid by incumbents. “On fiber-to-the-home, it’s going to be a partnership or it’s going to be an acquisition,” he said, adding that consolidation is needed to make the market sustainable.
The comments revived speculation about Telkom, the partly state-owned operator that owns more than 170,000 kilometers of fiber and has passed 1.38 million homes, with almost 700,000 connected. MTN attempted to buy Telkom in 2022, but talks collapsed after exclusivity guarantees could not be secured. Mupita emphasized that no discussions are currently taking place, though analysts note Telkom remains a logical target if MTN seeks immediate fiber scale.
Telkom has repositioned since those failed talks, leaning on its Openserve division to expand home connections and positioning itself as the third-largest operator in the market. Any renewed bid by MTN would be closely scrutinized by regulators, who have shown caution toward major industry consolidation.
Vodacom sets the pace as fiber market expands
MTN’s biggest competitor has already moved aggressively. Vodacom, South Africa’s largest operator, won final approval for its R13.2 billion ($741.7 million) deal to buy a 30 percent stake in Maziv, the parent of Dark Fiber Africa and Vumatel.
The Competition Tribunal initially blocked the transaction in October 2024 on anti-competitive grounds, but after months of concessions and conditions—including commitments to expand rural coverage and offer affordable packages—it was cleared. That precedent underscores both the challenges and the possible pathways for MTN if it revives its pursuit of Telkom or other fiber assets.
The road ahead for MTN and fiber consolidation
MTN Group, led by Ralph Mupita, serves 298 million subscribers in 16 markets. In South Africa, fiber connections have grown from just over 1 million in 2019 to 2.5 million in 2024, but penetration remains low, leaving room for expansion as demand rises from streaming, remote work and digital services.
Mupita, who owns a small part of MTN worth more than $11 million, has emphasized that MTN would rather make partnerships and buy a few companies than spend a lot of money on new ones. With Vodacom’s Maziv deal reshaping the sector, Telkom’s Openserve is the clearest target for consolidation, though any large move would face strict regulatory conditions aimed at protecting competition and affordability.
