South African fixed-line operator Telkom has said its mobile brand 8ta is not planned to “be discontinued” but rather “repositioned into specific market segments.”

This is according to a press statement responding to reports late last week of a leaked letter from Telkom Mobile managing director Attila Vitai.

In the letter, Vitai reportedly says, “I am excited to announce that a decision has been taken that the 8ta brand will progressively be changed to Telkom Mobile.”

At the time of writing, Telkom Mobile focuses on a business market segment while 8ta targets consumers. 8ta, which was launched in 2010, has 3 million mobile subscribers in South Africa but it has failed to make a profit.

According to a financial report released this year, Telkom said its entire mobile division, which includes 8ta, recorded a R753-million loss for the six months to September 2012.

However, Telkom has subsequently denied that it is doing away with the 8ta brand altogether.

“8ta will not be discontinued, but will be repositioned into specific market segments,” the company said in a statement released on the weekend.

“This will support the group-wide convergence strategy and drive greater alignment. This rebranding exercise will support a more effective business with stronger commercial prospects,” the statement added.

An announcement regarding the future of the brand is planned to be made “shortly”, says Telkom.