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Sentech's R1bn cash injection en route

Johannesburg, 13 Feb 2007

Sentech will soon receive the necessary funding to roll-out its R1 billion wireless broadband network by the end of this year, says the Department of Communications.

Negotiations for funding began last year following the announcement by Department of Public Enterprises minister Alec Erwin that the signal distributor would play a key role in reducing telecommunications prices in SA.

At the time, it was understood Sentech's broadband wireless infrastructure would take communication services to the underserviced areas in SA and play a key role in reducing telecoms prices.

However, an additional role, of providing broadband services for government service delivery, was outlined yesterday.

Speaking at the economic cluster media briefing, Erwin further outlined Sentech's broadband role, saying the signal distributor would provide core access to wireless broadband connectivity for government service delivery and prioritising education and health centres.

'No conflict'

Department of Communications director-general Lyndall Shope-Mafole says there is no potential conflict between the two roles.

"While the focus will be on rolling out government broadband services, Sentech will also be able to roll-out commercial services in areas where normal commercial companies find that they cannot do so," she says.

Shope-Mafole adds that Sentech is the obvious choice to roll-out government's wireless broadband needs.

Erwin also cleared up potential misunderstanding between the roles that Infraco and Sentech will play.

"I want to make this very clear: Infraco will be a fibre optic landline operator, while Sentech will supply government's broadband needs wirelessly."

Sentech media relations manager Pranil Ramchander says Erwin's announcement is a positive development.

"This further reinforces Sentech's positive role in being able to offer services such as e-commerce, e-government, e-health and e-learning in SA and Africa," he says.

(Additional reporting by Damaria Senne)

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