SNO is on track

Johannesburg, 06 Jul 2006

SA`s eagerly awaited second national operator (SNO) has dismissed reports that it is not on track with its plans.

A spokesperson for the company referred to a press release when asked for comment on whether Telkom`s competition would be ready for business later than expected, as indicated in newspaper reports. The statement, issued on Tuesday, indicates the yet-to-be-named operator is on track for rolling out wholesale services mid-year.

MD Ajay Pandey said in the statement: "The SNO has targeted the launch of its initial wholesale services in mid-2006, and, in line with this projection, plans are well under way towards introducing international wholesale voice and some international data services to other telecom operators.

"The SNO has adopted a phased approach to rolling out its services. We are currently in discussion with various potential customers and are now in advanced stages of readiness to deliver."

It added it should gradually start providing enterprise solutions towards the end of this calendar year and consumer services for the broader public in the first quarter of next year.

It has also acquired assets from Transtel, Transnet`s telecommunications arm, for R256 million. The assets, which do not form part of the operational private network operated by Transtel, include a base of deployed optical-fibre cable, as well as telecommunications equipment and facilities countrywide.

The SNO`s Web site states it has "started planning its network roll-out and market entry and is already engaging actively with various stakeholders in the country`s telecommunications space".

The company plans to introduce its first niche services in mid-2006 and to have launched, in phases, a wide portfolio of telecommunications services by March 2007, it said.

SA`s first step towards liberalisation in the fixed-line market dates back to the Telecommunication Act, as amended in 2001, which laid out a timetable for the liberalisation of the South African market.

The SNO is 30% owned by parastatals Transnet and Eskom, while Nexus Connexion has a 19% stake and Sepco owns 51%. Sepco comprises: Tata 51%, CommuniTel 24.5% and Two Consortium with 24.5%.

Neither Eskom nor Transnet could respond to requests for comment this morning.