SNO still faces significant delay

Johannesburg, 22 Sep 2004

The second national operator`s (SNO) entrance into the market could be delayed until at least the second quarter of next year, if Nexus Connexion succeeds with its legal action.

According to lawyer Daniel Pretorius, from Bowman Gilfillan - Nexus Connexion`s attorneys - an urgent interdict has been filed in the Pretoria High Court, which Nexus hopes will prevent the regulator from issuing the SNO licence, and stop the minister from taking further action.

"The interdict will be heard in court on 28 September, coincidentally, the same date that the Optis case will be heard, and we hope to get a ruling that will freeze the SNO process until our latest review application comes before the court," says Pretorius.

Earlier this year, Nexus filed an application seeking a judicial review of the process that saw a 25% combined shareholding in the SNO awarded to two foreign bidders, namely CommuniTel and Two Consortium.

According to Pretorius, the review application names minister Ivy Matsepe-Casaburri as first respondent, followed by Two Consortium, CommuniTel, Transtel, Eskom Enterprises and finally the Independent Communications Authority of SA (ICASA).

"The date that the review application will be heard depends on the minister filing her answering affidavit, which she has not done yet, although she still has five weeks in which to do this.

"Once she files the answering affidavit, we have two weeks to reply to that and only then can a date for the hearing be set, so it is unlikely to come before the courts before February or March next year," he says.

"The only way Nexus would accept a continuation of the SNO process during this time would be if ICASA issued a licence to the SNO that completely excluded Two Consortium and CommuniTel."

While neither SNO interim chairman and spokesman, Karl Socikwa, or the Department of Communications were available for comment, CommuniTel`s Mike van den Bergh was quoted last week as saying: "With Nexus now renewing its litigation, this will be a further headache for the SNO.

"It is disappointing that Nexus is seeking legal redress, rather than attempting to find solutions to the problems."