Interview with Karl Socikwa: Spokesperson, second network operator
MONEYWEB: A warm welcome now to Karl Socikwa from the second network operator. Well, if you haven’t been following the story, there is going to be a competitor to Telkom – but when? Karl, just bring us up to date. There has been quite a lot of time that’s elapsed from the initial announcement of a second network operator to today’s decision, where the shareholders’ agreement was finally signed. Now, who are the parties that participating here?
KARL SOCIKWA: Alec, good evening. Good evening to your listeners as well. The parties are the current six shareholders in the SNO. That’s Transnet Limited, represented by Transtel, Eskom Holdings, represented by Eskom Enterprises, CommuniTel Telecommunications Proprietary Limited, two telecom consortiums, VSNO, which is part of the Tata group of companies, and Nexus Connection, which is the black empowerment partner in the SNO. So those six shareholders today signed the shareholders’ agreement for the second national operator.
MONEYWEB: Why has it taken so long?
KARL SOCIKWA: You know, this process has really taken far longer than we anticipated right at the beginning. But I think particularly what we’ve come to realise over the last couple of weeks is that we’re putting together a business here for the long haul. It’s going to be major infrastructure initiative. We’re going to be deploying quite extensive communications infrastructure throughout the country. It’s the country’s second national fixed-line operator. It’s going to be in place – the licence is a 25-year licence, so this is really we’re in it for the long haul.
MONEYWEB: So you had to negotiate in little bits and pieces Karl – was that the reason that held it up?
KARL SOCIKWA: We had to negotiate a business plan, which is now in place, and we had to negotiate a shareholders’ agreement, which is also now in place. We had to talk around issues of how do we integrate the various parties. We’re quite far down the road with that, and we’re also busy now with what needs to be done to launch the business itself.
MONEYWEB: Now, Transtel and Eskom have got their own structures, their own networks, which will give you a flying start in competing with Telkom. But how much more money, how much more investment will be required before you can be a credible competitor?
KARL SOCIKWA: Well, it will go into the billions. I mean, Transtel and Eskom Telecoms, as you rightly indicate are extensive telecommunications networks in and of themselves. Those will become available for the SNO. So the SNO is not an entirely greenfields operation. It does have the Transtel backbone and the Eskom telecoms backbone.
MONEYWEB: And are there any obviously opportunities for you to launch into?
KARL SOCIKWA: Oh yes, of course. We are going to start with the existing Transtel, Eskom Telecoms customer base, but we haven’t been sitting doing nothing. As we’ve been planning the network expansion as well, we have been speaking to some key customers or potential customers out there, to try and ascertain where their expansion requirements would be, so that we plan with that in mind, and that we plan to roll out infrastructure and services into those areas where customers will be requiring services.
MONEYWEB: Now Telkom have got an alliance, a very strong one, with Vodacom. Are you going to be tying up with one of the cellphone companies?
KARL SOCIKWA: The business model that we’re looking at is one of partnership. We don’t want to be all things to all parties. We believe in a partnership type of approach into the market. You know, we believe that gone are the days of vertically integrated business that wants to operate and run in all sectors of the market. Rather, we will concentrate on what is niche for us and partner with those entities that have the other areas of the market as their niche area, and in that way be able to deliver a turnkey solution to our customers.
MONEYWEB: Have you been following the debate and discourse over ADSL?
KARL SOCIKWA: Oh, very closely.
MONEYWEB: Is there opportunity for you?
KARL SOCIKWA: Tremendous opportunity. I think ADSL – you know, it’s the first step on the road to true broadband. Not true broadband. ADSL really is about pumping more capacity in existing copper infrastructure, and that copper infrastructure at the moment is under the control of Telkom. There are other forms of broadband-type technology, broadband-type infrastructure, both fixed and wireless, that we are looking at. And this is an area that we believe we are going to pay specific attention to, because through broadband we’ll then be able to deliver things such as fast Internet, video services to residential areas and the like. So we are looking at that closely.
MONEYWEB: Karl, when are you likely to be off the ground?
KARL SOCIKWA: Well, we’ve completed now our part, as was required by the Minister, and we’re submitting the documents to the Minister. The process then from there is going to go to Icasa, and Icasa, who I’m hoping to have an audience with over the next couple of days, will then spell out to us what the process is going to be going forward. We don’t anticipate that should take an unreasonably long period of time. Obviously, as we are going through the motions with Icasa, and the Icasa process will culminate in Icasa then issuing us with a licence, we anticipate that it will take, say, two to four weeks at most. And then, but as that process is ongoing we are busy with all that needs to be done and put in place towards the launch of the business.
MONEYWEB: Karl Socikwa, the spokesperson for the second network operator. So it’s here in months rather than years.
Source: http://www.moneyweb.co.za
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