/ 5 February 2003

Minister kickstarts second bidding round

Communications Minister Ivy Matsepe-Casaburri has set up a second national operator committee to manage the process after the recent rejection of two bidders.

Last week the minister announced the rejection of two bids for the 51% stake in the second national operator — often dubbed Telkom 2.

The minister said in a statement that in line with the Telecommunications Act of 1996 as amended, she had issued a notice in the government gazette on Monday outlining the process to be embarked upon to allocate the equity stake.

She said: “The allocation of the stake to local and international investors in the Second National Operator will be made by expression of interest to pre-qualify for competitive negotiation and or one on one negotiation.

“A Second National Operator committee accountable to me has been established under the chairmanship of Pakamile Pongwana, Deputy Director-General of Telecommunications.

“The SNO Committee will manage the entire process with the assistance from legal and economic advisors I am appointing for this purpose,” said the minister.

“In executing its task the committee shall recommend a short-list of negotiating parties to me as derived from all those who would have responded to an Invitation To Express Interest to pre-qualify to be short-listed as a potential negotiating party.

“All negotiations conducted as part of the competitive and/or one-on one negotiations shall be confidential and without prejudice.”

Applicants, who responded to the Invitation to Apply for the Provision of Public Switched Telecommunication Services contained in Notice 786, shall not be precluded from applying to pre-qualifying for short-listing as potential negotiating parties.

“The decision on the successful applicant will be taken by me within 90 days and after consultation with the Independent Communications Authority of South Africa (Icasa) “the Authority”, Department of Public Enterprises, Eskom, Transnet and Nexus Connexion and any other party I may deem necessary.

“I shall make public my final decision and instruct Icasa (the Independent Communications Authority of South Africa) to proceed with the processes contemplated in clauses 6,7 and 8 of Schedule to Notice 755 of 2002 as published in GG23427 of May 2002.

“The Second process I will be initiating through a notice in the Gazette relate to the issuing of the Invitation To Express Interest.

“The Invitation to Express Interest to pre-qualify and conduct competitive negotiation and/or one-on-one negotiation shall be issued by me by way of a notice in the Government Gazette, within 21 days, to pre-qualify to be short-listed as a potential negotiating party. In addition a third notice will be issued in the Gazette in due course indicating the successful bidder.

“Once more I wish to reiterate our commitment to the speedy introduction of competition in telecommunications sector much to the benefit of the market and consumers,” said the minister. – I-Net-Bridge