No bids for the majority stake in the second national operator (SNO), to start competing with Telkom next year, have been received but regulators say as many as five bids could come in before the deadline of 2pm tomorrow.
This is in spite of fears that have been expressed that all potential investors have been scared off.
"It seems to be the norm in this industry that they only pitch up on the final day," says Siyabonga Madyibi, SNO project manager at the Independent Communications Authority of SA (ICASA).
"We are only prepared to receive bids as of tomorrow and I`d be very surprised if we got any today."
He is expecting between three and five bids, based on the number of companies or groups that have expressed interest in bidding.
Bidders must by tomorrow provide detailed business plans stretching over five years and lay out how they plan to integrate shotgun wedding partners, Eskom`s Esi-Tel and Transnet`s Transtel, which will hold a combined 30% of the company, as well as a black empowerment stakeholder. A non-refundable R250 000 application fee must also be paid on the spot.
Licence by March
Last-minute bids would continue a trend seen during the selection of the third national cellular operator, which went to Cell C, and the selection of a 19% black empowerment stakeholder in the SNO, where some bids were submitted minutes before the expiry of the deadline.
Bidding for the 51% stake, which is open only to fairly large existing operators, was to close two months ago, but the deadline was extended after a poor show of interest. However, Madyibi says ICASA may be able to recommend a winning bidder to communications minister Ivy Matsepe-Casaburri by the end of January and a licence could be issued by the end of March.
"If we use February effectively to integrate [the 51%, empowerment and government components] into one entity, and March to negotiate the final terms of the licence, it could be issued then," he says.
Madyibi does not expect legal threats to mar the SNO process as they did the third cellular licence selection. However, Matsepe-Casaburri has yet to approve ICASA`s selection of Nexus Connexion as the empowerment partner, despite the recommendation being handed to her three months ago.
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