ITC backbone needs stiffening
Public Enterprises Minister Alex Erwin’s attempt to fast-track the creation of a state-owned digital backbone for the country was slowed to analogue speed in Parliament this week with MPs demanding to be convinced of the need for a new state-owned enterprise to run it.
Yunus Carrim, chairman of Parliament’s committee on public enterprises, gave officials from Erwin’s department two weeks to prepare a more convincing case for the proposed multibillion-rand company, to be known as Broadband Infraco.
“There is no case I can see that is clear and precise for this proposal. You have to come up with better arguments,” he told Public Enterprises deputy director-general Sandra Coetzee.
Among the motivations for a backbone were health and education requirements and the growth of business outsourcing services, as well as the 2010 World Cup and the country’s bid to host the world’s biggest radio telescope.
Neotel, South Africa’ s infant competitor to telecommunications giant Telkom, urged quick passage of the Bill to create Infraco, with additional exemptions to smooth its market entry. Neotel has been promised four-year exclusive rights to market Infraco’s national broadband services.
The company had originally expected to own the Transnet and Eskom communications infrastructure that will now form the basis of Infraco’s national network.
The government decided later to hold on to the network and to pay cash for its 30% stake in Neotel.
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