Infraco's first step may be sidestep

By Paul Vecchiatto, ITWeb Cape Town correspondent

Cape Town, 08 Feb 2007

The Department of Public Enterprises (DPE) is drafting an Infraco law that would form the legal basis for the creation of the state-owned broadband supplier and possibly allow it to sidestep licensing requirements.

Gaynor Kast, a spokesperson for public enterprises minister Alec Erwin, confirmed today that such a law was being drafted and that the minister would brief the Parliamentary Portfolio Committee on Public Enterprises later this month.

Erwin is also scheduled to address a Parliamentary media briefing on Monday, 12 February, when it is expected the Infraco issue will be raised as well.

Kast says an Infraco law is necessary to create a state-owned enterprise. Many other such companies have them, such as the Sentech Act that governs the national signal distributor.

An observer, who has been closely following the unfolding Infraco issue, says: "Such a law would also help Infraco to circumvent the telecommunications licensing requirements as stipulated under the Electronic Communications Act."

The Act allows for minister of communications Ivy Matsepe-Casaburri to approve the licensing of a state-owned enterprise for strategic reasons.

President Thabo Mbeki is also expected to make reference to telecommunications in his state of the nation address tomorrow.