Budget holds ICT promises

The budget for the coming fiscal year, presented this week by finance minister Trevor Manuel, makes provision for a broad contingency fund of R3 billion - some of which is expected to be pumped into Infraco.

Sentech, SA's nuclear plant, the Pebble Bed Modular Reactor and the settlement of a land claim relating to the Alexkor mine are the other parties set to benefit from the reserve.

However, no definite allocation has been set aside for the state enterprise that now appears to be referred to as Broadband Infraco, in the DPE's budget vote.

In the national budget, Sentech was allocated R120 million for a period of one year - to get its digitisation project off the starting blocks, and R21 million for its participation in the East African Submarine Cable System (which now has a new name: the Nepad Broadband Infrastructure Network).

Radio news media reported last night the government would spend a lot of effort to make the public aware of digital migration, which is an important move.

As the Telkom-BCX takeover saga continues, it seems BCX's financials are taking a knock.

Dave Glazier, journalist, ITWeb

Gauteng premier Mbhazima Shilowa's State of the Province address on Monday emphasised ICT as an important solution to many of the province's challenges. Technology will be deployed over the coming year to improve policing, assist with the drivers' licence booking system, and automate healthcare records.

While there is still no word on how the government's massive health information system is going, or how this will link to the premier's promises, Gauteng residents may be left waiting to see the effects of these plans.

While we all wait eagerly to see exactly what Neotel will do this year, as it gears up to launch consumer services, some of its plans became clearer this week, when Cisco announced a nice contract win. The network infrastructure giant will build - through local deployment partner Dimension Data - metropolitan Ethernet networks across several South African towns and cities for Neotel.

Cisco is coy about the value of the three-year deal, but it appears to be an interesting and important step in Neotel's development.

Telkom's last-ditch effort to turn around an unfavourable legal ruling was killed this week, when the Constitutional Court denied Telkom leave to appeal a ruling against the fixed-line operator, in its long-running legal war with US software company Telcordia.

The cost of damages, which could feasibly be upwards of R1 billion, will now be determined in an arbitration process. The original dispute referred to a contract between the companies more than five years ago.

Following Fidentia's financial service businesses being placed under curatorship, Fidentia subsidiary Software Futures is up for grabs. Firms interested in buying the software company are able to apply, and should it be sold, it would be the fourth time in 10 years the firm has changed hands.

As the Telkom-BCX takeover saga continues, it seems BCX's financials are taking a knock. Analysts suggest the company's future ownership uncertainty is hindering the JSE-listed company's ability to sign up long-term contracts.

Telecommunications firms may be declared "public interest companies" under the new Companies Act, now out as a discussion Bill, ITWeb reported this week. Public interest companies have greater responsibility to a wider public, so the argument goes, but the trade and industry department says it's premature to identify specific companies as being in this category.