Public Enterprises Minister Alex Erwin\u2019s 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.<\/p>\n
Yunus Carrim, chairman of Parliament\u2019s committee on public enterprises, gave officials from Erwin\u2019s department two weeks to prepare a more convincing case for the proposed multibillion-rand company, to be known as Broadband Infraco.<\/p>\n
\u201cThere is no case I can see that is clear and precise for this proposal. You have to come up with better arguments,\u201d he told Public Enterprises deputy director-general Sandra Coetzee.<\/p>\n
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\u2019s bid to host the world\u2019s biggest radio telescope.<\/p>\n
Neotel, South Africa\u2019 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\u2019s national broadband services.<\/p>\n
The company had originally expected to own the Transnet and Eskom communications infrastructure that will now form the basis of Infraco\u2019s national network.<\/p>\n
The government decided later to hold on to the network and to pay cash for its 30% stake in Neotel.<\/p>\n