Telkom plans to combine fixed and mobile telephony, and this is the rationale behind its talks with Vodafone and MTN. 

The company's statement accompanying its interim results, reads: "Telkom issued a cautionary announcement on 3 September 2007, which advised shareholders that discussions are underway with Vodafone and MTN Group, in line with our mobile strategy of combining both fixed and mobile telephony to mitigate the slower growth of fixed-line usage.
"Telkom`s focus is on achieving integration with the mobile partner that the company will choose to move forward with to deliver fixed and mobile services to complement each other, a strong African footprint and an ability to offer converged services to our customers in the future.
"The board is committed, through the mobile strategy review, to explore all options to accelerate Telkom`s long-term sustainable growth strategy. "
Meanwhile, Telkom is in the process of selling a 30% shareholding in its subsidiary Swifnet in order to comply with existing licence requirements from ICASA.
The 30% shareholding has in principle been sold to empowerment investors, the Radio Surveilance Consortium (`RSC`), for R55-million. The transaction, however, is  still subject to an ICASA approval process.
The BEE shareholders of Telkom Media have been confirmed as Videovision Entertainment, MSG Afrika Media and WDB  Investment Holdings. As at 30 September 30, however, these shares had not yet been transferred.