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Molotsane joined by IT elite

Paul Vecchiatto
By Paul Vecchiatto, ITWeb Cape Town correspondent
Cape Town, 10 Jul 2008

A veritable who`s-who of IT entrepreneurs have joined former Telkom CEO Papi Molotsane on the board of Synglo, which has taken a 65% stake in wireless ISP UniNet.

Molotsane has taken a pro-liberalisation view of the market, as UniNet needs to be licensed to roll-out its planned network.

He says the future of the industry now rests with communications minister Ivy Matsepe-Casaburri and the regulator, the Independent Communications Authority of SA (ICASA).

The new UniNet board has Molotsane as executive chairman and the two other executive directors being UniNet founder David Jarvis and Seelan Moodley, who has had extensive experience in setting up IT companies in this country and in India, and was the original founder of Synglo.

The non-executive directors are Jones Killimbe, CEO of Regional Africa Satellite Communications and previously an executive director of Tanzanian Telecoms; Mothibi Ramusi, who once held the post of senior manager of frequency planning at ICASA; and Lietsiso Mohapeloa, previously CEO of Lesotho Telecom.

Other non-executive directors are Sehapa Moeletsi, chairman of the MaQhubu IT Forum; Paul Lamontage, CEO of entrepreneurial network Enablis SA; Geoff Heinebach, previously chairman of the Cape IT Initiative and currently chairman of Clickatell; and Mulweli Rebelo, a founder member of UniNet.

Molotsane says the future shareholding structure will be announced when UniNet Telco is launched later this year and that the changes are necessary to accommodate certain value-adding role players.

The model

He says UniNet`s business model is to provide low-cost telecommunications services through wireless networks that will be built around the country using proprietary technology.

"Our objective of low cost-telecommunications could be similar to Smile Communications` objective but our approach is different. We have a delivery track record in SA, especially in under-serviced areas since 1999 and some of that is in partnership with government," Molotsane says.

He says the Department of Communications was pivotal in securing UniNet`s initial funding through Enablis SA.

"We do, however, welcome more players in the spirit of the Electronic Communications (EC) Act, because such a proliferation of competitors will only be a good thing for consumers. We moreover hope the minister [Ivy Matsepe-Casaburri] will apply her mind properly to understand that there are other role players out there who will play a role in changing the telecommunications landscape," he says.

The application

Molotsane says the application for UniNet to get an individual-electronic communications network service (I-ECNS) licence that will enable it to build its infrastructure rests with the regulator, ICASA.

"We have applied for the conversion of our VANS licence to an I-ECNS licence and we feel we are well positioned to be awarded this licence even outside the legal process currently headed by Altech. We have taken a view that since 2005 VANS can self-provide. This view is still unchallenged in the legal system and only after the Altech case will there be further clarification on this issue. We are, however, in a roll-out mode for all our projects."

Molotsane notes that Parliament has vindicated UniNet`s position and even visited Knysna, where it has a joint venture with that municipality, to verify the extent of its service delivery.

"We believe we are well positioned to create waves in the telecoms industry, and the EC Act, if properly implemented, will enable competition through liberalisation."

Related stories:
Ex-Telkom boss buys UniNet
The irony of Smile and Uninet

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