The government is to sell 26% of the equity in the second national telephone operator (SNO), which will compete with Telkom in the fixed-line market, Minister of Communications Ivy Matsepe-Casaburri announced on Thursday.
”After engaging extensively in discussions with interested parties on the SNO, I have decided to grant CommuniTel and Two Consortium 26% equity in the SNO, of which each will hold 13%. Both parties have agreed to accept the offer,” she said in a media statement.
The unallocated 25% equity will remain with the government, which will take responsibility for seeing that this portion is warehoused.
”The SNO licence will be issued by Icasa [the Independent Communications Authority of South Africa] to the integrated entity composed of CommuniTel, Two Consortium, Esitel, Transtel and Nexus Connection.
”The above entities are currently engaged in an integration process, which is expected to be finalised shortly.”
The minister thanked ”all parties for their willingness to engage in discussions and also to encourage them to work together, so that a credible, effective SNO is in place as soon as possible.” — Sapa