South Africa’s Telkom in talks to buy mobile phone operator Cell C

South African fixed-line operator Telkom said it is in talks to buy rival Cell C , as it seeks to boost its fledging mobile phone business.

Telkom is currently performing due diligence on Cell C, the company said in a statement.

Buying South Africa’s third-largest mobile telecoms network Cell C would give Telkom about 20 million mobile phone users but also a company facing a consumer backlash due to slow network speeds.

Telkom did not indicate how much it would pay for the unlisted Cell C.

“It could be a credible tie-up,” said the chief executive of mobile phone network Vodacom, Shameel Joosub, at an earnings briefing on Monday. Combining fixed-line and mobile businesses would make Telkom stronger, he said.

Oger Telecom South Africa owns 75 percent of Cell C.