S. Africa’s Telkom loses N164 billion in Nigeria

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THE Nigerian unit of South Africa's telecommunications company, Telkom, has lost more than N164 billion ($1.1 billion) as it struggles to establish itself in the highly competitive market, the Southern African Communications Minister, Roy Padayachie, said yesterday.

Telkom has lost 7.4 billion rand ($1.1 billion, 760 million euros) on Nigerian unit Multi-Links since taking it over in January 2009, Padayachie said in a written reply to South African lawmakers, questioning Telkom's "failed efforts to gain ground" in Nigeria.

"Telkom underestimated the highly competitive nature of the Nigerian telecommunications market and also failed to build and manage appropriate distribution channels," Padayachie said.