MTN Group and Telefónica ink strategic deal

South Africa’s MTN joins Telefonica Partners Program
Middle East Africa, MTN Group Telefónica deal, Telecoms, Telecoms consolidation


South African telecom operator MTN Group and Spain’s Telefónica Group have signed a strategic partnership agreement to enable both parties to benefit from their joint scale, expertise and market access.

The agreement is supported by the Telefónica Partners Program, an initiative launched by Telefónica in 2011, which includes other leading telcos covering a total of 35 markets in Europe, Latin America, Asia and Middle East.

Both companies have agreed to work together to “capture synergies” in a number of strategic areas. Many of the initial areas are intended to improve both companies’ standing with enterprise customers, including services to multinational companies in each other’s footprint, collaboration in M2M and new digital products and services targeting the B2B segment. Additionally, the two groups will also cooperate in various initiatives and exchange best practices to capture new industry opportunities. Both companies will also enter in discussions on how to engage effectively in international wholesale, devices and network/IT procurement.

MTN Group and Telefónica teams may also engage in other business areas under the scope of the strategic agreement, such as alignment in key technology projects in network and IT, new initiatives, such as mobile money or big data projects, and collaborate on commercial and marketing strategies. Companies will collaborate bilaterally on these and other selected areas.

Herman Singh, group chief digital officer, MTN, said: “MTN Group believes this strategic partnership with Telefónica […] will bring great benefits to MTN in enabling future growth delivery. The development scope includes our innovation process and new product offerings as we move into the new digital world, as well as leveraging our combined scale in areas such as procurement. We are really looking forward to developing this relationship to our mutual benefit.”

Mario Martin, industrial alliances group director, Telefónica, said: “Telefónica has a strong belief in the advantages of scale and pooling of skills that industry partnerships can bring. We are confident that this agreement will bring important benefits to both our Groups”.


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