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MTN Outsources South Africa Stores to Brightstar

It has been reported that telecom giant MTN Group Ltd. has closed a deal with Brightstar Corp., outsourcing their entire retail operations in South Africa to the US-based Corporation. Industry insiders speculate that up to 800 jobs may now be in jeopardy due to this deal.

Brightstar will take on management of the mobile-phone company’s chain of shops selling handsets and services in South Africa and may take on some of the MTN staff. They will also operate most of Johannesburg-based MTN’s distribution and logistics operations in the country, building on a services agreement signed with the continent’s biggest wireless operator in 2011. MTN operates in 22 countries around Africa and the Middle East and has more than 220 million subscribers. Over the past few months, MTN has been rapidly cutting costs in order to match up to the erstwhile market leader, Vodacom Group. Brightstar will also operate most of Johannesburg-based MTN’s distribution and logistics operations in the country, building on a services agreement signed with the continent’s biggest wireless operator in 2011.

MTN shares gained as much as 4.1 percent, the most since March 5, and traded 3.6 percent higher at 212.42 rand as of 11.32am, April 1, 2015, in Johannesburg. That values the company at 392 billion rand.

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