Both operators claim they are pulling out from the two countries because the markets are no longer viable for communication businesses. Like Telecom Namibia, Telkom South Africa wants to stabilize the local operations first before embarking on new investment opportunities across Africa.

Telkom South Africa entered the Nigerian market in 2007 after buying a 75 percent, 1.96 billion rand (US$280 million) stake in Multi-Links Communications, which provides services including fixed wires, unified access service and international data services in Nigeria. In January 2009, the company bought the remainder of Multi-Links.

Telkom South Africa hoped the entry of the company into the Nigerian market would provide a stepping stone for the company's investment in other West African countries, which have financially struggling operators. The pullout from Nigeria means that the company has also suspended its planned investment in any West African country.

Due to financial stress, Telkom South Africa has further closed down Telkom Management Services, an investment venture that was created by the company to pioneer investments into Swaziland, Lesotho, Democratic Republic of Congo, Zimbabwe, Malawi, Uganda and Ghana.

However, the company's CEO, Jeffrey Hedberg, said this week that the pulling out of the Nigerian market does not mean that the company would ignore its focus on repositioning its African assets. At a later stage, Hedberg said, the company would look at new opportunities for investments in the region.