MTN - MTN Group Limited - MTN SA update on interconnection discussions

MTN - MTN Group Limited - MTN SA update on interconnection discussions          
MTN Group Limited                                                               
(Incorporated in the Republic of South Africa)                                  
Registration Number 1994/009584/06                                              
Share code: MTN                                                                 
ISIN: ZAE000042164                                                              
("MTN")                                                                         
MTN SA update on interconnection discussions                                    
MTN South Africa (SA) is in ongoing discussions regarding interconnection rates 
and in this regard the following press release was issued by MTN SA on Friday,  
late afternoon.                                                                 
"MTN SA can confirm that an agreement has been reached with Vodacom, and is     
pursuing bilateral negotiations with Cell C and other operators.                
The two parties reached an agreement based on the parameters set in earlier     
negotiations, which have been underway for some time. However, it is with regret
that no agreement has been reached with Cell C at this stage.                   
These bilateral negotiations take place in terms of the regulations by the      
Independent Communications Authority of South Africa (ICASA), which has         
oversight over the process.                                                     
In terms of the agreement, the parties proposed approximately 19% immediate     
reduction of the blended wholesale interconnect tariffs, with further reductions
year-on-year for the following three years.                                     
This reduction cycle will enable MTN SA to make the necessary changes to its    
operations and long-term commitments to reflect the decrease in interconnect    
rates.                                                                          
In terms of due process, the two parties will now need to lodge the agreement   
with ICASA for their regulatory oversight. MTN SA is pleased that progress has  
been made in the negotiations, and will continue to engage in good faith with   
other parties as part of the ICASA process to resolve outstanding interconnect  
agreements.                                                                     
MTN SA believes that the agreement reached with Vodacom will have the effect of 
lowering mobile termination rates without impacting too heavily on jobs,        
investment, access and penetration."                                            
Fairland                                                                        
26 October 2009                                                                 
Sponsor: Deutsche Securities (SA) (Proprietary) Limited                         
Date: 26/10/2009 09:24:56 Supplied by www.sharenet.co.za                     
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