UPDATE 2-MTN to build $180 mln S.Africa fibre-optic network

(Adds fresh quotes, details, share price)

JOHANNESBURG, July 25 (Reuters) - South African mobile phone group MTN (MTNJ.J) plans to spend 1.4 billion rand ($183.1 million) to build a 5,000 km fibre-optic network in the country, a top official said on Friday.

"We will be doing that in partnership with other operators and (the figure) might increase slightly," Tim Lowry, MTN's managing director for South Africa said at a presentation.

The group hopes to roll out the national fixed-line network by 2010 and save about 6.3 billion rand in transmission costs over 10 years.

Transmission services are one of MTN`s biggest costs, and the operator uses Telkom (TKGJ.J) for that service.

Vodacom, the country's biggest mobile operator, is also building its own fibre-optic cable network. Vodacom is a joint venture between Telkom, the country's biggest fixed-line operator, and Britain's Vodafone (VOD.L).

MTN may roll out its national fibre-optic cable in partnership with Neotel, the country's second fixed-line operator, which is also laying out its own national fixed-line network.

Lowry said MTN South Africa would spend 250 million rand to build a new fibre-optic network around stadiums and hotels for the 2010 Soccer World Cup.

MTN is also spending 130 million rand in the deployment of a fibre metropolitan network in high traffic zones in Johannesburg. The group said trials were completed in June and it would go live in the third quarter of 2009.