Embattled telecommunications group Telkom requires “skills and competency” to implement a turnaround plan, not foreign investment, Communications Minister Dina Pule said on Monday.
In response to Parliamentary questions on Cabinet’s decision to halt a proposed deal between South Korean telecommunications group KT Corp and Telkom earlier this year, the Minister reiterated that Telkom needed to find the “best and most suitable” solution to its current challenges.
KT Corp intended to buy a 20% stake in Telkom for R2.6-billion.
Pule said earlier that Telkom was a strategic asset in the roll-out of South Africa’s 2020 broadband aims, but the group needed to “get back to its critical centre”.
She noted that Telkom was also key in government’s efforts to improve the skills of South Africa’s citizens.
The Department of Communications was undertaking assessments of all possible options available to Telkom and would report back to Cabinet in about two months.
On Friday, Telkom withdrew its cautionary announcement on the JSE, signalling an official end to talks with KT Corp.