No clarity on SNO network

Johannesburg, 07 Aug 2006

The Department of Public Enterprises has neither confirmed nor denied that it seeks to "sell" Eskom's telecommunications infrastructure to a state-owned entity.

"The minister of public enterprises, Alec Erwin, has expressed his regret at the publication of the alleged delay in the establishment of the SNO by Business Day," the department says.

It states the news report was published after the department had "repeatedly said it was premature to divulge any information around the SNO". The SNO is scheduled to begin wholesale services - to telecoms providers - by mid-year, according to a press release it issued in July.

The department also contends information in the story is inaccurate, but would not say what information was inaccurate. It concedes negotiations were under way, but did not specify whether these were regarding the sale of Eskom's infrastructure to the SNO, or a state entity.

"As the Department of Public Enterprise, we wish to place on record that the information in the story is inaccurate. An announcement will be made once the negotiations have been concluded. We are confident this is in the best interest of the SNO and its launch."

Broadband

In May, minister of communications Ivy Matsepe-Casaburri stated that investment in ICT broadband infrastructure was central to achieving government's aims of growing the economy at 6% a year by 2010.

In her department's budget speech, she said government would address the question of increasing affordable access to broadband. "We have prioritised the roll-out of broadband infrastructure in the country."

Government, which is a majority shareholder in SA's only fixed-line network - Telkom - also owns Sentech, which it is mobilising to offer wireless broadband to rural areas.

However, the minister's speech seems to imply the department is looking at other forms of broadband. "As a country, we have to ensure the broadband backbone is robust enough to meet our socio-economic development, business, as well as the science and research needs of our country. Our work in this regard is continuing at a good pace in collaboration with the department of public enterprises."