Cabinet to review Broadband Infraco and Sentech merger plan

Cabinet will review a proposed plan to merge Broadband Infraco and Sentech in December, reported Reuters.

The plan involves the merger of the two state-owned ICT companies with the aim of creating an entity that can improve national mobile broadband coverage.

Department of Telecommunications and Postal Services director-general Robert Nkuna said the law would need to be amended to allow for the establishment of a national broadband network company by 2020.

Nkuna said the department did not see a national broadband company as a monopoly, and is not inclined to sell Sentech to the private sector to fund the creation of the new firm.

Sentech carries over 90% of South Africa’s radio and television signals and would be an asset when combined with Broadband Infraco’s high-speed fixed-line broadband capabilities, stated the report.

The report follows the recent appointment of Andrew Matseke as CEO of Broadband Infraco.

Now read: Government spent R1 billion on an IT system that doesn’t work

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Cabinet to review Broadband Infraco and Sentech merger plan