Telecoms liberalisation at last 

* As was intimated last week, approval has now been received for the $16 billion AT&T and SBC Comms deal that will create the largest telecoms company in the US and ends AT&T`s 120-year history as an independent company. This deal potentially creates a company with a turnover of about $90 billion, similar in size to IBM.

* The EOH and Mthombo IT Services black empowerment deal will create a 25% black-owned entity with a staff complement that includes nearly 40% from the previously disadvantaged community.

* Despite various conflicting statements from numerous parties, telecoms deregulation is now a reality. The second national operator situation also now needs to be resolved quickly.

* Good interim results from Prism (revenue up about 12.5% but attributable earnings up over 40%) and an increase in the value of its black empowerment deal with the Mineworkers Investment Company.

* Mediocre interim numbers from Zaptronix (revenue well down, but just back in the black).

* The Sekunjalo Investments and Synergy Computing deal will significantly strengthen Sekunjalo`s IT portfolio and should be able to leverage opportunities from its other portfolios.

* Positive trading updates from Business Connexion, Digicore, Grintek and Interconnective Solutions.

* Aureos Southern African Fund acquired Tofo Public Payphones.

* SA`s education minister launched government`s new education portal.

* Sage Enterprise was re-branded to Softline Enterprise.

* The merger of Artec Computer Systems and SA Communication Services.

* China`s Huawei established about 30 branch offices across Africa over the past few months.

* China`s ZTE is continuing its inroads into the Northern African and Kenyan telecoms

markets.

* The Senegalese government announced that a second national operator will be chosen by the end of March 2005 to compete with Sonatel, a subsidiary of France Telecom.

* Uganda announced it will license a third operator for both fixed and mobile services to compete with MTN Uganda and Uganda Telecomms.

* Eastman Kodak acquired Creo, the world`s number one provider of workflow software used by printers.

* Getronics took-over PinkRoccade after a protracted on-off situation and a hostile bid for the former by Ordina, another Dutch IT group.

* Sony plans to split one of its biggest electronic divisions into two units. The division that handles the Vaio PC and the Walkman will have most of its periphery bits, eg cameras, moved into a separate unit.

* A strategic partnership between SigmaTel and Matsunichi Comms Holdings.

* India`s ICICI Infotech changed its name to 3i Infotech.

* The appointments of Michael Brochu as president and CEO of Loudeye, Randall Curran as CEO of ITC^DeltaCom, Paul Eibeler as CEO of Take-Two Interactive, Mark Ferrer as chairman of Critical Path, and Casey Powell as CEO of XIOtech.

* The resignations of Jeffrey Cavins as president and CEO of Loudeye, William McGlashan as chairman of Critical Path, Richard Roedel as CEO of Take-Two Interactive (stays on as chairman), and Marty Yudkovitz as president of TiVo.

* Job loss announcements from France Telecom and Matsushita.

Sony plans to split one of its biggest electronic divisions into two units.

Paul Booth, MD, Global Research Partners

* Planned IPOs from Baidu.com, China`s largest Web search engine in which Google has a stake; and India`s IT services provider, ICICI Infotech.

* Satisfactory IPOs from FairPoint Comms and Hurray Holdings.

* A bid by KKR and Providence Equity Partners for Adelphia, the bankrupt cable company.

* The possible sell-off by China`s Huawei Technologies of parts of its business, such as its optical and access divisions.

* A possible reaction to the SBC/AT&T deal by Qwest Comms International, Verizon Comms or BellSouth, with the target likely to be the acquisition of MCI. Qwest has already made an offer for MCI and one is awaited from Verizon.

* The winner of the bid for Czech`s Cesky Telecom, where Swisscom is still the front runner.

* Europe accounted for the sale of nearly 9 million mobile devices, personal digital assistants (PDAs) and smart phones in 2004. PDAs were up 11% and smart phones up 41%. (IDC)

* Global semiconductor sales hit $213 billion in 2004, according to the Semiconductor Industry Association, a year-on-year increase of 28%. 2005 sales are expected to be flat.

* JSE All share index: Up 2.4%

* Nasdaq: Up 2.5%

SA share movements

Beget (+150%)
Datatec (+8.2%)
Elexir (+25%)
Faritec (+26.9%)
Jasco (+27%)
Labat Africa (+18.2%)
MGX (+11.8%)
Spescom (+11.3%)
Y3K (+64%).

Following the telecoms liberalisation, many new players are emerging in the local market. The costs of playing in the telecoms space are very high and many of these companies won`t have the necessary funds available to them without raising funds possibly via a listing on the JSE/AltX.

It is still too early to identify specific companies but a pattern will emerge over the next few months with any listings, I suspect, being directed at AltX rather than the main board.

Additionally, will Vodafone buy part of Telkom`s stake in Vodacom and will the latter then list on the JSE?