While 2005 brought deregulation and the licensing of the second national operator, South African telecommunications users are set to experience tariff reductions as a result of regulatory changes and increased competition for fixed-line, mobile and data operators in 2006.
London-headquartered Vodafone on Thursday purchased 1,03% in VenFin's issued share capital for R213,9-million in open-market transactions, the cellular giant disclosed to the JSE on Friday. Vodafone acquired 4,6-million VenFin shares in 18 deals for amounts ranging from R44,75 to R46,60 per share.
While describing its rates as "some of the lowest", Saudi-owned Cell C has entered the cellular-pricing fray by enhancing its "Friends and Family" product to provide its customers with the lowest tariffs in the market. Cell C's enhanced offering follows Vodacom's and MTN's recent price-cutting moves.
South African information and communications technology company Allied Technologies (Altech) posted a 15,3% rise in headline earnings per share to 181 cents for the six-month period ended August this year, from 157 cents reported a year earlier. Revenue jumped by 11% to R2,933-billion.
The South African government-owned State Information Technology Agency's net profit after tax for the period ended March this year jumped by 69% to R59,303-million from R35,085-million reported previously, Sita CEO Mavuso Msimang said on Friday. Revenue grew by 14,5% to R2,636-billion.
The Communication Workers' Union on Thursday welcomed the Independent Communication Authority of South Africa's (Icasa) public hearings aimed at regulating the subsidisation of cellphone handsets. Addressing the Icasa panel, Cell C and MTN representatives said they support the removal of subsidies.
The naming of the R900-million Gautrain rapid rail's winning bidder by Gauteng Premier Mbhazima Shilowa remains on hold until further notice as the government's three-way team continues to mull over the finer details, it emerged on Thursday.
Shares in telecommunications group Telkom rose to a lifetime high of R119 per share on Monday after the firm announced its financial results for the year ended March 2005. Telkom reported a 53% rise in basic earnings per share to 1241,8 cents, from last year's 812 cents.
Shares in mobile service provider MTN Group collected 4,19% in Friday's early session on the JSE Securities Exchange (JSE), where it was among the most active shares by value and number of shares traded. Traders attributed the surge to a renewed interest by foreigners.