The Independent Communications Authority of SA (ICASA) has announced that it will be issuing a public switched telecommunications service licence to the second national operator (SNO) this Friday, 9 December.
The licence will be issued at a public forum at the Sandton Convention Centre, despite a legal action to delay the process by Optis, a failed bidder for the SNO licence.
On 28 November at least one member of the SNO consortium received a letter from Optis`s lawyers stating that if it received a 4.5% stake in SepCo, it would not proceed with any further legal action.
Optis CEO Alan Freidland expressed surprise at the news, saying he wonders "why ICASA would issue a licence when they are well aware that there is a pending case challenging the stockholding of the SNO".
Optis`s case against the minister of communications states that if it had known that the 51% controlling stake in the SNO was to be split up, it would have bid for the second round. The Pretoria High Court has deferred judgement on the case to January 2006.
According to the provisions of the Telecommunications Act, the SNO is three years behind schedule due to problems with the bids and finding an international investment partner.
All stakeholders have been looking forward to this moment, as the SNO is expected to introduce much-needed competition within the South African telecoms sector. Speculation in the ICT industry has been that the SNO would begin offering services by March 2006.
ICASA`s media relations manager would not provide further details beyond the announcement, saying that it would be provided at the event.
In terms of the structure announced by the minister of communications in September 2004, the SNO`s equity share capital will be allocated among six main shareholders: black empowerment group Nexus Connexion with 19%, Transtel and Eskom with 30%, CommuniTel and Two Consortium with 12.5% each, and the India-based Tata Group with 26%.
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