The government has a stake in a number of state-owned companies (SOCs) within the portfolio of the Ministry of Telecommunications and Postal Services.
Some companies like Sentech and SITA are wholly owned by the government, while it only owns a portion of JSE-listed entities like Telkom and Vodacom.
In a recent presentation to Parliament, the Department of Telecommunications and Postal Services said all these entities need to work together to deliver broadband in South Africa.
However, the department warned the overlapping mandates of SOCs in the ICT sector represent an unnecessary duplication.
The department plans to create clear objectives for SOCs regarding their role in the roll-out of broadband infrastructure.
This includes avoiding undue competition between state owned entities involved in the broadband value chain.
It also plans to remove the administrative bottlenecks that constrain the roll-out of network infrastructure in South Africa.
The infographic below provides an overview of the SOCs listed by the department, which may play a part in its broadband plans.
Broadband Infraco future uncertain
The department said it is in engagements with Broadband Infraco, and that the company has been instructed to preserve its value in preparation for its SOC rationalisation.
“Pursuant to the above, Broadband Infraco is currently reviewing its business and financial plans,” said the department.
It added that engagements are taking place between the government and the IDC, a 26% shareholder in Broadband Infraco, to share its views on the future of the company.