JOHANNESBURG, SOUTH AFRICA: South African phone firm Telkom is in partnership talks with Hong Kong telecom company PCCW over plans to expand in Africa, a newspaper reported on Thursday.

Business Report, citing a source close to the talks, said the two firms, which both have operations in Africa, were looking to enter into a co-operation agreement similar to the one Telkom has with U.S. firm AT&T.

Telkom said in April it had agreed to work with AT&T to provide IT and telecom services in Africa in a bid to win business from foreign firms expanding on the continent.

Telkom Chief Executive Reuben September did not confirm or deny the talks, the newspaper said, while PCCW refused to comment.

"(Telkom is) always in talks with international companies," September said.

Telkom has a broad network in Africa -- built by acquiring companies such as Kenya's Africa Online and MWeb Africa --, while PCCW offers a range of telecoms services, including pay-TV and Internet-TV, and operates in the United States, Africa, Asia and the Middle East.

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