One of the two bidders vying for the second telecommunications network operator (SNO) has expressed ”extreme concern” following the release of a report which raised doubts about the viability of both bids.
The report, which was released by the Independent Communications Authority of SA on Tuesday, found that the bids of Two Consortium and Communitel were ”highly contingent on a number of issues, which therefore makes them non-binding offers”.
The report, authored by Next Generation Consultants, also accused the two bidders of ignoring draft licence provisions and found both bids financially deficient.
In a statement on Wednesday night, Two Consortium said: ”The report, which is tabled in a framework of legitimacy, however is characterised by blatant bias against both bidders and an unprofessional attempt at discrediting them.”
The consortium charged that the consultants had made ”sweeping” assumptions while drawing selectively from public hearings.
”Much use is made of selective quotations from the public hearings, sweeping assumptions and conclusions about the financial investments required for the business and it mysteriously ignores those fundamentally sound and innovative strategies contained in the proposals which will see the SNO target under-served markets.
”Its (the report’s) conclusions are that the state-owned enterprises being Transtel and Esi-Tel together with Nexus have adequate capacity to compete with Telkom.”
The report also created a false impression of the relationship between Two Consortium and cellphone network provider MTN, it said.
”One could be forgiven for deducing that there are other forces at play which have an agenda directly in conflict with that of the Ministry of Communication which is to ensure that the SNO is best placed to compete against Telkom.”
Two Consortium said it hoped sense would prevail and the consultant’s report was ”taken from whence it comes”. It planned to prepare a detailed response to Icasa in which it would address the issues raised in greater detail.
The latest saga is only another chapter in the controversy surrounding the SNO bidding process. In January this year, Icasa recommended that two previous final bids by Goldleaf Trading and Optis Telecommunications be rejected for similar reasons.
The process was then re-opened for bids, with much fanfare, in late March. Two consortium and Communitel are competing for a 51% controlling stake in the entity that will finally be awarded a licence.
Eskom Telecommunications, Eskom Enterprises, and Transtel hold a guaranteed 30% stake in the SNO and black economic empowerment company Nexus Connexion holds the remaining 19%.
Icasa said it would make its choice of bidder known to Communications Minister Ivy Matsepe-Casaburri on August 28. – Sapa