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Tata to invest 'billions` in SNO

Paul Vecchiatto
By Paul Vecchiatto, ITWeb Cape Town correspondent
Cape Town, 18 Feb 2005

Communications minister Ivy Matsepe-Casaburri expects Tata to invest "billions" of rand in the second national operator (SNO).

Earlier this week, the minister announced the SNO finally has a full complement of shareholders, with Indian-based Tata Group being awarded the remaining 26% shareholding.

The Tata Group, represented in SA by Tata Africa Holdings, has investments including Tata Infotech, which operates in India, SA and several other countries, while the organisation also owns Tata Technologies and has shares in dual-listed telecommunications giant VSNL.

In reply to a question today during her parliamentary press briefing on the Department of Communications` activities, the minister said while she does not yet know exactly how much the Indian industrial group will invest in the SNO, the investment will include technology and other expertise.

The minister also covered several other issues in her annual briefing, including the finalising of the ICT black empowerment charter. "Its implementation will certainly revolutionise the ICT industry. However, the shortage of resources for SMMEs [small, medium and micro enterprises] remains one of the biggest challenges for us."

Other Acts the department is expected to bring before Parliament this year are the Telecommunications Amendment Act and changes to the ICASA Act, although these were not mentioned during the briefing.

During her briefing, the minister also said the Convergence Bill, currently undergoing parliamentary processes, will be made available for public comment next week.

Putting plans in motion

Matsepe-Casaburri discussed the licensing of the first six underserviced area licensees, which will be monitored by the Universal Service Agency and ICASA on an ongoing basis.

"The government is confident this will provide stimulus for economic growth in the second economy sector and its integration into the first economy, while making possible delivery of government services," the minister said.

Touching on the South African Post Office, which falls within the department`s ambit, she said it will launch a national address database and registry, and will continue to roll-out public information terminals in Post Offices. The roll-out plans prioritise the Integrated Sustainable Rural Development Programme nodes.

"This allows ordinary citizens in the rural areas to access services through new technologies such as the Internet and include a free SMS service."

The minister said the department continues to play a key role in Africa`s development through its participation in the decommission of the New Partnership for Africa`s Development (NEPAD).

She says the NEPAD e-Schools Project has been launched in the first 15 countries, including SA. It includes six schools from each country, and the Department of Education has selected those from different regions of SA on the basis of the challenges that will be experienced in connecting them.

Related story:
SNO shareholding complete

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