bull.
I can really see the strategists in Government saying to each other: "Come on guys, let's set up a para-statal to destroy the monopoly of our own para-statal."
From my recollection Infraco was borne out of a little inter-departmental tussle between the DTI (Alec) vs. DoC (Ivy), with the DTI eventually getting the upper hand.
If you think about it a bit, maybe the DTI did have their heads in the right place. While most have been focusing on international (submarine) & local/regional capacity, I forsee the place where we will experience the biggest capacity crunch in the future, will be on national transit infrastructure.
To my knowledge there are only 3 significant national inter-region fibre networks operational currently in SA (excl VC/MTN/Neo proposed one);
1. Telkom
2. Eskom
3. Transtel
I believe the DoC would have allowed Neotel to buy networks 2. & 3. probably due to the handsome sum the SNO paid them for their license. This would have lend to a duopoly in national transit, not very conducive to competitive pricing.
The DTI's plan was to bundle networks 2. & 3. into an entity called Infraco, and provide Neotel a period of exclusivity (only reseller) to compensate them for the license fee. However once the exclusivety period expires, the Infraco network's capacity will hopefully be made avaliable to the rest of the industry (at competitive pricing).
Not sure if it will come to pass this way, or make a difference to national transit pricing, but it does seem the DTI's motives were in the best interests of the communication industry?