What should happen in SA is that SAT-3 should be renationalised and the bandwidth sold to Telkom, the SNO and anyone else at REASONABLE PRICES. The DoC mentioned that in-between solitaire games a while back, but as we by now know anything that comes from there is to be taken with a black hole of salt.
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NITEL Will Be Sold Without SAT3 - Minister
Daily Trust (Abuja)
November 10, 2005
Posted to the web November 10, 2005
Anas A. Galadima
Barely four days to the opening of financial bids for the sale of the Nigerian Telecommunications Limited (NITEL), the federal government has revealed that NITEL will be should without the International Submarine Cable (SAT3).
The SAT3 cable is a 15,000 kilometre high-performance fibre optic cable that links Europe with South Africa and some West African countries. The cable is jointly owned by a number of countries, one of which is Nigeria (through NITEL).
A statement from the ministry of communications said that the decision of the federal government not to sell NITEL along with the SAT3 cable derived from the fact that the cable is a key asset in the communications industry.
"For the avoidance of doubt," the statement said, "it is pertinent to state that the International Submarine Cable (SAT3) will not be sold with the Nigerian Telecommunications Limited (NITEL).
"To this effect the federal government has incorporated a holding company, the Nigerian Cabling and Telecoms Network Ltd, to manage SAT3.
"This follows a presidential approval granted to the ministers of communications and finance which detached the cable from the assets of NITEL as the sale of the company draws to a conclusion.
"The holding company is to guarantee the availability of this valuable asset to all users in the communications industry rather than make it the exclusive property of the private company that the sold NITEL will become," the statement concluded.
When contacted for reaction to the ministry's position yesterday, Mr. Chigbo Anichebe, head of public communications at the Bureau of Public Enterprise (BPE), the privatisation agency, would not comment on any presidential directive "because we are not aware of it."
"We may however make our position known," he added, "after our director general, Mrs. Irene Chigbue, returns from her trip. She's away but we expect her to be back by tomorrow."
Speculation has been rife for weeks that the federal government would withdraw SAT3 from the assets of NITEL before its privatisation.
Meanwhile financial bids for the sale of the government-owned telecommunications company has been slated for Monday next week. The six companies pre-qualified by BPE to participate in the bid for the company are MTN Nigeria Communication Limited, the Telkom/Vodakom consortium from South Africa, the Hanweii/Jacuz consortium, Orascom of Egypt; Celtel International B.V., and Newtel International.
Vodakom has withdrawn from the Telkom consortium following federal government's directive that the company cannot bid for the acquisition of NITEL while simultaneously engaged in talks to acquire a majority stake in Vodacom Nigeria.
There are fears that the government's decision not to sell NITEL along with SAT3 could lead to a drop in the number of interested bidders for the company, as most of them are reportedly interested in NITEL because of its part ownership of the strategic SAT3 cable.
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NITEL Will Be Sold Without SAT3 - Minister
Daily Trust (Abuja)
November 10, 2005
Posted to the web November 10, 2005
Anas A. Galadima
Barely four days to the opening of financial bids for the sale of the Nigerian Telecommunications Limited (NITEL), the federal government has revealed that NITEL will be should without the International Submarine Cable (SAT3).
The SAT3 cable is a 15,000 kilometre high-performance fibre optic cable that links Europe with South Africa and some West African countries. The cable is jointly owned by a number of countries, one of which is Nigeria (through NITEL).
A statement from the ministry of communications said that the decision of the federal government not to sell NITEL along with the SAT3 cable derived from the fact that the cable is a key asset in the communications industry.
"For the avoidance of doubt," the statement said, "it is pertinent to state that the International Submarine Cable (SAT3) will not be sold with the Nigerian Telecommunications Limited (NITEL).
"To this effect the federal government has incorporated a holding company, the Nigerian Cabling and Telecoms Network Ltd, to manage SAT3.
"This follows a presidential approval granted to the ministers of communications and finance which detached the cable from the assets of NITEL as the sale of the company draws to a conclusion.
"The holding company is to guarantee the availability of this valuable asset to all users in the communications industry rather than make it the exclusive property of the private company that the sold NITEL will become," the statement concluded.
When contacted for reaction to the ministry's position yesterday, Mr. Chigbo Anichebe, head of public communications at the Bureau of Public Enterprise (BPE), the privatisation agency, would not comment on any presidential directive "because we are not aware of it."
"We may however make our position known," he added, "after our director general, Mrs. Irene Chigbue, returns from her trip. She's away but we expect her to be back by tomorrow."
Speculation has been rife for weeks that the federal government would withdraw SAT3 from the assets of NITEL before its privatisation.
Meanwhile financial bids for the sale of the government-owned telecommunications company has been slated for Monday next week. The six companies pre-qualified by BPE to participate in the bid for the company are MTN Nigeria Communication Limited, the Telkom/Vodakom consortium from South Africa, the Hanweii/Jacuz consortium, Orascom of Egypt; Celtel International B.V., and Newtel International.
Vodakom has withdrawn from the Telkom consortium following federal government's directive that the company cannot bid for the acquisition of NITEL while simultaneously engaged in talks to acquire a majority stake in Vodacom Nigeria.
There are fears that the government's decision not to sell NITEL along with SAT3 could lead to a drop in the number of interested bidders for the company, as most of them are reportedly interested in NITEL because of its part ownership of the strategic SAT3 cable.
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