Communications minister Ivy Matsepe-Casaburri has granted a licence to the second national operator (SNO) consortium and has asked the Independent Communications Authority of SA (ICASA) to approve it.
A statement released by the Department of Communications today says the announcement is in accordance with the minister`s decision of 26 August.
It says Matsepe-Casaburri has "granted to the SNO comprising Nexus Connexion, Transtel, Esitel, WIP Investments Nine trading as CommuniTel, Two Consortium and the remaining unallocated equity shareholder, a licence to provide public switched telecommunications services in the Republic of SA, subject to the following conditions:
"Acceptance of the shareholding and control structure of the SNO, finalisation of and agreement on the business plan, and finalisation of the shareholders and subscription agreements."
As stated in the 26 August announcement, a new company, Sepco, will be incorporated and hold 51% of the equity share capital of the SNO.
The statement says the minister has asked that ICASA should undertake the role of approving the applicants` submissions, including the shareholder agreement, business plan and thereafter the licensing of the SNO entity.
Control of Sepco will be held by a new financial investor which will have a 51% shareholding. WIP Investments Nine trading as CommuniTel and Two Telecom Consortium will each hold 24.5% of Sepco.
Transtel and Esitel will together hold 30% of the equity share capital of the SNO.
Nexus will hold 19% of the equity share capital of the SNO.
The integration of the SNO company will be the responsibility of the SNO company shareholders.
The statement says the minister expects to finalise the process of selecting a suitable investor for the unallocated equity soon.
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