Sentech fails to compete
Budget documents released last week by the department of communications state that Sentech will close its wireless high-speed internet product, MyWireless, and the Biznet service to help the company to profitability. It will also come up with a strategy for the network technology product VSAT.
Sentech should also come up with a marketing strategy for its decoder business, Vivid – that is if the Independent Communications Authority of SA will let it continue the poorly marketed service.
According to the latest media reports, the government lacks confidence in Sentech's management. As a result, the department of communications and the treasury are working together to help restore its corporate governance, financial management and strategic focus to bring it back into the black.
Instead of making an outright response to defend itself, Sentech has opted to release a "consolidated and comprehensive response" in the next 10 days. It was quick to add that "the long-term future of the company is a lot more positive than appears from what is currently in the public domain". That is hard to believe.
If Sentech is unable to make a success of MyWireless and other related products, what guarantees are there that it will be able to handle the multibillion-rand national broadband network, especially after more than 100 resignations a year ago?
The department of communications recently gave Sentech R500 million to start with the network roll-out to take telecoms services such as the internet to hospitals, schools and rural areas.
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