Johannesburg, 11 Sep 2012
An inter-ministerial committee, led by communications minister Dina Pule, has pondered several options for Telkom and is set to provide three to Cabinet next week.
Pule cannot disclose which options will be presented to Cabinet at its regular meeting, either on Wednesday or Thursday, for its decision.
The committee includes finance minister Pravin Gordhan, public enterprises minister Malusi Gigaba, state security minister Siyabonga Cwele, and military and veterans minister Nosiviwe Maphisa-Nqakula.
It was set up to investigate possible options for Telkom, after Cabinet binned a proposed deal between Telkom and KT in June. KT aimed to buy 20% in new Telkom shares, for about R3.3 billion.
The Department of Communications sees Telkom as a strategic asset in government's plan to increase broadband and telecommunications services to all. The state aims to increase broadband penetration to 100% by 2020.
Last month, the National Planning Commission handed its final National Development Plan to president Jacob Zuma, The proposal suggests Telkom should be broken up into two businesses: a wholesale unit, focusing on backhaul operations, and a retail telecoms business.
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