A discussion on future plans and strategies from the various fixed-line stakeholders - pending liberalisation and open competition - was thrown into disarray yesterday at the Tel.Com Africa 2002 conference when Telkom`s speaker withdrew at the last minute.
Citing that the organisation "felt uncomfortable" discussing future strategies and views with its initial public offering (IPO) pending, CEO Sizwe Nxasana instead handed a short statement to the event`s organiser, Reed Exhibitions.
The statement said Telkom was not allowed to make any forward-looking declarations as this would be in contravention of the securities exchange regulations and could adversely affect the company`s IPO.
Instead, it was left to Angus Hay, Transtel`s chief technology officer, to map out the future for the second national operator (SNO) and discuss its place in the SA telecoms industry.
Transtel and Eskom`s Esi-Tel hold a combined 30% of the entity, while black economic empowerment partner, the Nexus Connexion consortium, is due to be awarded a further 19%. The remaining 51% is earmarked for a foreign equity partner.
When asked what plans Transtel had in place should no foreign bidder be forthcoming by the deadline of end-October, Hay replied that the bidding process and licensing issue were out of their hands, and was solely the domain of the Department of Communications and the Independent Communications Authority of SA.
"There are a lot of ifs at the moment, but from our side, everything is in place and in order. In all honesty, we can only make a decision on anything once the deadline has passed and we know whether any bids have been tabled.
"I believe we can deliver our part of the equation. We are committed long-term investors - to the tune of R2 billion - and we have analysed the situation extensively and feel we can bring both local and African operator experience to the SNO."
He says Sentech, the company that operates an international gateway carrying international voice traffic and a potential rival to both Telkom and the SNO, is likely to be a client of the SNO terrestrially.
"Sentech will certainly be a competitor of ours in certain areas, but in others it is likely to become a partner."
Commenting on the licences to be issued to smaller operators to provide telecommunications services in specified rural areas, he said Transtel was very supportive of this process.
"We see these underserviced area licences as playing an important role in filling in the gaps in the bigger South African telecoms picture," says Hay.
"As for Telkom, it shouldn`t worry about having competition, as competition improves profits. Also, it has been shown in the overseas markets that your biggest rivals can often end up being among your best clients too."
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