WEDNESDAY, 1.00PM
ON another front in its war to preserve its telecommunications monopoly over the next five years, Telkom says that it stands to lose billions of rand if the South African Telecommunications Regulatory Authority (Satra) rules against it and allows Internet service providers to offer more than value-added services. The telecom is also fighting South Africa’s callback providers over rights to international telephone revenues, in a legal battle in which it has the support of Satra.
Telkom group regulatory executive Nombulelo Moholi has told Parliament’s public enterprise and communications committee that Telkom stands to lose money if the switching and transport of data becomes acceptable for value-added network service providers. She also said that this will open the way for all data switching networks operate, causing declines in Telkom revenues that will hamper the parastatal’s ability to provide services to disadvantaged communities.
At present only four of 72 internet service providers in South Africa are contravening the Telecommunications Act by offering more than value-added services, such as resale and voice-over services. But as a measure of Telkom’s fears for its revenues and monopoly on services, Telkom chairman and acting chief executive officer Dikgang Moseneke blames callback operators for the untility’s marginal 4% growth to R2,79-billion in international business in the year to March 31.
BUSINESS BRIEFS
ENGEN WOOS BLACK INVESTORS
LISTED oil company Engen is to sell a “meaningful” stake to black investors, Almorie Maule, Engen’s head of strategic initiatives, said. She said this means the stake will be in line with what other main shareholders have at present. Analysts speculate that Sanlam, which holds a 15,5% stake in Engen through Sankorp, might be willing to reduce its equity to a strategic holding, in line with an earlier statement made by Sankorp chairman Marinus Daling.
TRADE TALKS POSTPONED
TRADE talks between South Africa and the European Union, which are meant to have taken place this month, have been put on the back burner, casting doubt on pledges by both parties to inject new momentum into the negotiations. It is now planned that Europe’s chief negotiator, Philippe Soubestre will travel to South Africa for an October session.
BILLITON MAKES FTSE
BILLITON, the London-listed metals and coal group which recently split from Gencor, has been included in the FTSE-100 index on the London Stock Exchange. Only Australian miner Rio Tinto is bigger than Billiton among the mining counters on the index. Billiton was listed on the LSE in July.
‘RATIFY LOM’
THREE parliamentary committees say that South Africa’s accession to the Lom Convention should be ratified without delay, to avoid lost opportunities for SA companies in tendering for European Union contracts in developing countries. The foreign affairs, trade and industry and agriculture committees also expressed concern over the strong protectionist sentiments in the EU
ROLLS ROYCE WAITS FOR SAA
A DECISION by South African Airways on whether to use Rolls-Royce engines in four new Boeing 777s the airline is to buy is holding up a decision by Rolls-Royce on establishing a plant in East London. SA Airways has not indicated when a decision on the engines will be taken.