As Reliance Communications [Get Quote] (RCom) is struggling to sew up a deal with South African telecom major MTN, another Indian telecom service provider Tata Communications is all set to get a majority stake in South African telecom firm Neotel.

Tata Communications has entered into an agreement with South African state-owned enterprises, Eskom and Transnet, to acquire their 30 per cent stake in Neotel for an undisclosed amount.

It already has a stake of 26 per cent in the South African company. The company along with Tata Africa Holdings will hold 56 per cent stake through this acquisition.

Tata Africa Holdings is the investment arm of the Tata Group in South Africa with operations in eight countries in the continent. The agreement is subject to certain conditions to be fulfilled over a six-month period.

The other shareholders of Neotel include Nexus, Communitel and Two Telecom Consortium.

After becoming Tata Communications (earlier VSNL [Get Quote]), the company had announced a joint venture with a value-added services telecom company in China for network services and is looking for similar tie-ups in Asia and West Asia to boost growth.

Recently, the company announced its network expansion plans in Africa through an arrangement with Neotel, South Africa's first converged communication network operator. The tie-up enabled Tata Communications to offer its full global suite of products, including solutions for voice and data connectivity, managed security services, among others.

According to reports, South Africa and West Asia will comprise almost 16 per cent of the total global telecom market by 2010, following the emerging markets of China and India.