http://allafrica.com/stories/200501260242.html
Decision On Telkom Rival 'During 2005'
Business Day (Johannesburg)
January 26, 2005
Posted to the web January 26, 2005
Information Technology Editor
Johannesburg
Adjudication process not yet finalised
A DECISION on which of two bidde rs will be awarded a controlling interest in the long-delayed second network operator will be announced "during the course of 2005", a communications department spokesman said yesterday.
The drawn-out time-frame dashes any hopes that customers will soon be able to deal with a rival to Telkom, even though the bidders for the 26% controlling stake were named in October last year.
Speaking at the African Telecoms Summit in Sandton yesterday, the department's GM: telecommunications, Devan Naidoo, said: "It is anticipated that the licensing will take place during the course of 2005."
Asked specifically when the winning bidder could be announced, Naidoo said the decision would be made this year, but he was unable to say how far advanced the adjudication process was.
Last November, the department attributed a delay in the closed tender process on the bidding parties themselves, saying they had both requested more time to complete their formal proposals.
Bids were submitted by Old Mutual Asset Managers and Tata Africa, an offshoot of India's Tata industrial conglomerate.
Meanwhile, the other parties in the second network operator consortium Nexus with 19%; Transtel and Eskom Enterprises with a joint 30%; and CommuniTel and Two Consortium with 12,5% each have yet to agree on the terms of the shareholders' agreement and their respective roles in the operation.
One source confirmed that the parties were still holding discussions in an effort to prevent Nexus from proceeding with a judicial review into the entire licensing process. Nexus is unhappy about the inclusion of Two Consortium and CommuniTel as shareholders, since both were rejected as substandard when they initially bid for a stake.
The long delays have already undermined the business case for the second network operator, because Telkom has used the hiatus to sign long-term contracts with many of its highest-spending corporate customers.
Its viability may also have been eroded by Communications Minister Ivy Matsepe-Casaburri's decision to liberalise the telecommunications market from February 1.
Some analysts believe the liberalisation negates the need for a second network operator, because data networking companies and internet service providers will be able to carry voice calls over their networks and lease their spare capacity to other players, giving customers more choice of service providers.
Other analysts argue that the liberalisation of the sector has actually increased the need for a second network operator, since numerous small operators will want to lease a national network infrastructure from a wholesale provider.
Speaking at the summit , Naidoo said liberalisation of the industry was a national imperative to create a globally competitive telecommunications sector, to reduce the cost of doing business and to accelerate economic development.
Decision On Telkom Rival 'During 2005'
Business Day (Johannesburg)
January 26, 2005
Posted to the web January 26, 2005
Information Technology Editor
Johannesburg
Adjudication process not yet finalised
A DECISION on which of two bidde rs will be awarded a controlling interest in the long-delayed second network operator will be announced "during the course of 2005", a communications department spokesman said yesterday.
The drawn-out time-frame dashes any hopes that customers will soon be able to deal with a rival to Telkom, even though the bidders for the 26% controlling stake were named in October last year.
Speaking at the African Telecoms Summit in Sandton yesterday, the department's GM: telecommunications, Devan Naidoo, said: "It is anticipated that the licensing will take place during the course of 2005."
Asked specifically when the winning bidder could be announced, Naidoo said the decision would be made this year, but he was unable to say how far advanced the adjudication process was.
Last November, the department attributed a delay in the closed tender process on the bidding parties themselves, saying they had both requested more time to complete their formal proposals.
Bids were submitted by Old Mutual Asset Managers and Tata Africa, an offshoot of India's Tata industrial conglomerate.
Meanwhile, the other parties in the second network operator consortium Nexus with 19%; Transtel and Eskom Enterprises with a joint 30%; and CommuniTel and Two Consortium with 12,5% each have yet to agree on the terms of the shareholders' agreement and their respective roles in the operation.
One source confirmed that the parties were still holding discussions in an effort to prevent Nexus from proceeding with a judicial review into the entire licensing process. Nexus is unhappy about the inclusion of Two Consortium and CommuniTel as shareholders, since both were rejected as substandard when they initially bid for a stake.
The long delays have already undermined the business case for the second network operator, because Telkom has used the hiatus to sign long-term contracts with many of its highest-spending corporate customers.
Its viability may also have been eroded by Communications Minister Ivy Matsepe-Casaburri's decision to liberalise the telecommunications market from February 1.
Some analysts believe the liberalisation negates the need for a second network operator, because data networking companies and internet service providers will be able to carry voice calls over their networks and lease their spare capacity to other players, giving customers more choice of service providers.
Other analysts argue that the liberalisation of the sector has actually increased the need for a second network operator, since numerous small operators will want to lease a national network infrastructure from a wholesale provider.
Speaking at the summit , Naidoo said liberalisation of the industry was a national imperative to create a globally competitive telecommunications sector, to reduce the cost of doing business and to accelerate economic development.
