Telkom will continue searching for new black economic empowerment (BEE) partners for its wireless service provider Swiftnet.
Last week, the Independent Communications Authority of SA (ICASA) rejected the subsidiary's BEE partner Radio Surveillance Consortium (RSC).
Telkom spokesman Pynee Chetty says no firm progress has been made in the search for a new BEE partner as the proposed transaction was re-submitted to ICASA fairly recently.
RSC, which comprises Radio Surveillance Security Services and Royal Security, bought a 30% stake in Swiftnet for R55 million in February last year.
The transaction was subject to approval by the Competition Commission and ICASA, which is said to have rejected the deal because it felt RSC did not meet the state's empowerment conditions.
BEE requirements
Swiftnet's wireless data licence requires a BEE partner hold a minimum of 30% of its shares. Last year, an unnamed source from RSC claimed the consortium was BEE complaint. Media reports state the contrary.
Telkom says the agreement between ICASA and Telkom that Swiftnet would take on a BEE partner occurred in the second half of 2004. ICASA intended to ensure more than 70% of the 30% share in Swiftnet would be broad-based.
The wireless service provider has been eyeing BEE partners since late 2006 and several potential deals, including one with a consortium led by DigitalIQ, fell through before Swiftnet signed with RSC.
ICASA and RSC could not be reached for comment by the time of publication.
Related stories:
VANs go without
Mashile slates 'token BEE'
Telkom, Comp Comm take to appeal
Share
