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Govt determined SNO will proceed

Paul Vecchiatto
By Paul Vecchiatto, ITWeb Cape Town correspondent
Cape Town, 27 Aug 2004

Government is determined the second national operator (SNO) process will proceed because it is in the public interest, says deputy communications minister Roy Padayachie.

"The parties involved in the SNO consortium must reach some kind of agreement. They may not agree 100%, but they must apply their minds as this process is in the public interest," he says.

Minister of communications Ivy Matsepe-Casaburri told Parliament yesterday that the SNO licence would be awarded on 17 September subject to a business plan being submitted by the consortium members.

Padayachie says he expects Nexus to "press certain issues with the rest of the consortium members, but they must make a business decision about whether they want to remain on board or not".

He was elaborating on quotes attributed to him in a daily newspaper today, stating that Nexus was told: "If you want to stay on board, you can stay on board; if you want to opt out, that is your decision."

Nexus was considering court action against the minister of communications relating to the decision to grant 26% stakes to both CommuniTel and Two Consortium.

Padayachie says now that the licence has been awarded, he hopes the need for such legal action will fall away.

He says government would like all parties on board the process, but that should one fall out, it would not hamper the fact that the SNO would go ahead.

Government polled the proposed consortium members about its decision and registered their feedback, says Padayachie. "At the end of the day, we based our final decision on what was best for the public interest, not merely what the members want."

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