Neither of the two consortiums bidding for South Africa’s second fixed-line telecommunication network operator (SNO) should be awarded the bid, the Independent Communications Authority of SA (Icasa) said on Wednesday.
Icasa chairman Mandla Langa told reporters in Johannesburg that in terms of the invitation to apply for the bid, neither of the two applicants — Optis and Goldleaf — qualified to get the 51% stake in the second national operator (SNO).
Langa was reading a list of recommendations Icasa made on the 51% equity stake in the SNO. The recommendations were presented to communications minister Ivy Matsepe-Casaburri in Pretoria earlier in the day.
The recommendations were drawn from an analysis of the bidders.
These included, among others, the business and finance plans, and details of technical as well as business experience in providing telecommunications services.
Others were human resource development, proposed integration of the black economic empowerment (BEE) partner and the empowerment of women, the disabled and the youth.
Both bidders were incapable of providing funds and failed to adequately address the integration of BEE as required in the application form.
”We found Optis’s application to be materially deficient and remained materially deficient despite numerous calls to the applicant to rectify this,” Langa said.
”We reached a conclusion that the applicant is a self company with no trading assets and records to underpin the warranties required by the invitation to apply,” he said.
In relation to the provision of services and a competitive strategy, Optis’s majority shareholders had no telecommunications experience, Langa said.
Optis also submitted incorrect and insufficient information with regards to human resource development as well as practices for training and promotion especially for entry level.
The applicant had no proposal for the empowerment of women.
Goldleaf demonstrated the knowledge of the South African market and some of the company’s principals possessed industry experience.
However, Langa said the applicant’s proposed model was not conducive to economic development and job creation.
Goldleaf’s plans in relation to the empowerment of women, the disabled and the youth were speculative and unsupported by their submission.
Langa said it was Matsepe-Casaburri’s prerogative to decide on the way forward, having considered Icasa’s recommendations.
In terms of the licensing process as set out in the Telecommunications Act, the minister could accept or reject Icasa’s findings.
She could also request more information from Icasa or refer the recommendations back to the authority for further consideration.
Matsepe-Casaburri said in a statement read on her behalf: ”I will read and apply my mind fully to the assessment of these recommendations.
”I will then announce my decision on February 1 at the Icasa offices in Johannesburg,” she said. – Sapa