Johannesburg | Tuesday
TELECOMS regulator Icasa (Independent Communications Authority of South Africa) said on Monday it would invoke special legislation to ensure that state-owned telecoms operator Telkom’s long-awaited IPO (initial public share offering) goes ahead in November.
The regulator issued new policy directives last Thursday that are key to the listing of about 20% of Telkom — the state’s biggest privatisation effort to date.
By invoking special legislation, a three-month inquiry by Icasa to allow public comment on the new regulations would be shortened to one month, Icasa counsellor Libby Lloyd told a media briefing.
”It is in the public interest that Telkom’s IPO should be successful and that there should be no delay in the licensing of the SNO and TNO because these are critical for the overall stability and growth of the economy,” she said.
The policy plans also allow for the licensing of a second (SNO) and third national operator (TNO) to rival Telkom’s fixed-line business.
Talk about possible delays in Telkom’s IPO has hit South African bonds and the rand amid worries that the government will not meet its privatisation revenue targets in this year’s budget.
President Thabo Mbeki said last week the public offering would take place within the financial year ending in March, if not within the calendar year.
The public has until August 24 to submit comments on the proposed regulations and ICASA sees submitting them to government by the end of September. – Reuters