/ 18 July 2001

SA MAY LICENCE TWO TELKOM RIVALS IN MAY

SOUTH Africa plans to license two rivals to state-controlled fixed-line monopoly Telkom from next May, the Business Day reported on Wednesday. The newspaper said the final telecoms policy directives, due out next week, were ”understood to call for both a second and third national operator to enter the market in May”. If approved by Communications Minister Ivy Matsepe-Casaburri the move would be a sharp departure from draft plans to introduce only one rival initially, and another within five years. The paper said the changes were the result of intense lobbying from international and local business and could hit the value of Telkom, which South Africa plans to list in an initial public offering in November, subject to market conditions. – Reuters