Neotel appears to have changed its mind about government`s new broadband supplier Infraco. The second national operator says Infraco erodes its business case and has delayed the roll-out of its own network.
The company`s representatives made these statements yesterday before the Parliamentary Portfolio Committee on Communications` public hearings into an amendment to the Electronic Communications (EC) Act aimed at speeding up Infraco`s licensing process.
"The fact is that the advent of Infraco has taken away some of the assets that were supposed to be earmarked for Netoel`s roll-out and they have impacted on our roll-out," said Michelle Hajari, Neotel`s manager for legal and regulatory affairs. "One does not simply build a telecommunications network overnight."
Her comments were echoed by her colleague Phatang Nkhereanye, who emphasised that Neotel could not comment further as it was still in discussions with the Department of Public Enterprises over the commercial contract that should govern Neotel`s role in reselling Infraco`s broadband.
Both of Neotel`s representatives also commented that the proposed changes to the EC Act have impacted on Neotel`s dealings with the municipalities.
"Many of the municipalities now see this as their chance to enter the market by allowing us to build their network and then to take it over once the amendment is passed," Hajari said.
Neotel`s statements drew an angry response from some members of Parliament.
ANC MP Eric Kholwane asked: "What has changed since your presentation to the public enterprises committee on 10 June, when you supported the notion of Infraco receiving a 'deemed` licence?"
Neither of Neotel`s representatives would comment further, citing that the commercial agreements precluded a response.
DA MP Dene Smuts commented: "It seems that then they had a deal and now they don`t."
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