Speaking at the annual general meeting of the Internet Service Providers Association (ISPA) today at Epsom Downs, Andile Ngcaba, director-general of the Department of Communications, assured local ISP players that Telkom will face serious competition by May 2002.
Ngcaba said that apart from the expected second national operator, which will compete directly with Telkom, his department will grant additional licences.
What we are positive about is that we do not want a repeat of the Cell C debacle.
Andile Ngcaba, director-general, the Department of Communications
Licences for a national long-distance operator, an international services operator and multiple local loop operators, which will operate in various regions of the country, will also be granted.
He added that although the new operators would start business in May 2002, they needed at least a year to get technology off the ground and operational, which means the licences will have to be announced in May 2001.
He was unsure about the manner in which licence contenders would apply.
"We haven`t made a decision about whether it will take the form of a tender or an auction, or any other form for that matter. What we are positive about is that we do not want a repeat of the Cell C debacle."
The ISPA has long been demanding competition to Telkom in an effort to negotiate cheaper and more bandwidth. The members cautiously welcomed Ngcaba`s news.
Ngcaba says his department is aiming for a telecommunications density of around 30%. At the moment, only 15% of the South African population has access to both wireless and fixed services.
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