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SNO licence due 17 September

By Tracy Burrows, ITWeb contributor.
Johannesburg, 27 Aug 2004

Communications minister Ivy Matsepe-Casaburri has announced that the second national operator (SNO) will be granted its licence on 17 September, subject to certain conditions.

The minister said in a media briefing in Parliament yesterday afternoon that the licence would be granted to the SNO consortium, comprising Nexus Connexion, Transtel, Esi-Tel, WIP Investments Nine (trading as CommuniTel), Two Consortium and the remaining unallocated equity shareholder. The process of choosing a suitable investor for the remaining share will continue, said the minister.

Matsepe-Casaburri said a new company, Sepco, would hold 51% of the equity share capital of the SNO. A new investor will hold a 51% share of Sepco, with CommuniTel and Two Consortium each holding 24.5%.

Transtel and Esi-Tel will together hold 30% of the equity share capital of the SNO, and Nexus, the preferred empowerment partner, will hold 19%. The new financial investor would control the board of Sepco, which would in turn control the board of the SNO.

Among other things, the granting of the licence will depend on agreement on a business plan by the partners.

CommuniTel director, Mike van den Bergh, welcomes the move as a positive step. "Perhaps the only concern from the shareholders` point of view is the uncertainty as concerns the new financial investor," he says. "It is important the minister identifies the new financial investor and completes the shareholding structure as soon as possible."

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