Media reports claim that partnership talks between South Africa-based telecom firm Telkom and Hong Kong telecom company, PCCW, have reached an advanced stage; in a bid to expand telecom services across the continent. Both firms are reported to be working to materialize an agreement similar to the one Telkom had finalized with U. S. firm AT&T.

Telkom, under an agreement, has been assisting AT&T in telecom sector of Africa where it has been doing business from expansion program of a foreign firm. However, Telkom Chief Executive Reuben September declined to divulge any details adding, "(Telkom is) always in talks with international companies."

Telkom, which earlier acquired Kenya's Africa Online and MWeb Africa, has significant geographical presence in African countries and is doing its best to strengthen its customer base across the continent.

Hong Kong's PCCW also has a significant subscriber base. It has been offering a range of services, such as pay-TV and Internet-TV, in the United States, Africa, Asia and the Middle East region.

September said: "Interconnection is a major aspect of our mobile strategy. It's a very price-sensitive matter and we will make a formal announcement to the shareholders."