The NextCom consortium has become the newest bidder for the third cellular license. The consortium, driven by empowerment group Maluti Telecommunications, will bid as NextCom Cellular.
The group has named Nortel Networks as technology and infrastructure partner, and Standard Corporate Merchant Bank will act as financial advisor. Three other groups have been named as part of the consortium: Prov-Tel, Aconet and Women in Telecommunications. The latter was formed specifically with the bid in mind and consists of four empowerment groups.
A mysterious union investment agency was not named, as negotiations have not been completed and the information remains sensitive, according to NextCom. A spokesperson confirmed that agreement has not been reached, but that negotiations are "quite advanced". A final announcement is expected sometime next week.
Amid growing industry concern about the lack of international operators in all bidding consortiums, NextCom also failed to identify a partner. While saying that it is in talks with several, the consortium would give no clear indication as to which companies are involved or when agreements would be finalised. "The bid has to be submitted in June, so we will be able to provide a name then," says spokesperson Moky Akinsemoyin. NextCom says the lack of clarity about number portability and interconnect-fees were keeping international players at bay.
NextCom chairman Sello Matsabu says the company, if successful, will compete head-on with the current operators. "We will not be neglecting the sectors where the majority of cell phone activity already occurs," he says. He believes customers can be poached from MTN and Vodacom by using price incentives and providing quality service.
"Our extensive research shows that lack of choice, poor network service and high tariffs are the most frequent complaints aired," says Jabulani Phakathi, project director of the Ingwe consultancy. "The mood is right in the marketplace for a new entrant with the right technology to support customer needs."
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