Vodacom is in talks with Cell C about taking on the smaller rival’s contract-paying cellphone customers, a move that would strengthen its position as SA’s telecom market leader, according to people familiar with the matter.

Vodacom would gain just more than one-million high-paying subscribers from the deal, said the people, who asked not to be identified as the discussions are ongoing. The talks are at an early stage and could still fall apart, they said...

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