Lingering uncertainty around Telkom's future may soon be cleared up, says communications minister Dina Pule.
The Department of Communications (DOC) has broken a near five-month silence on the government's proposal for the company going forward, as Pule says she is finalising the options for Telkom in consultation with its board.
The department says the delay in Telkom's options being put forward to Cabinet was due to board changes within the company, which last year saw erstwhile chairperson Lazarus Zim stepping down to be replaced by Jabu Mabuza.
In a statement today, the DOC said the options needed to take into account the launch of the Strategic Integrated Plan (SIP) 15, which deals with broadening access to information and communication technologies as part of the Presidential Infrastructure Coordinating Commission. SIP 15 was launched on 3 December.
"Minister Pule has met with the Telkom board twice already, with the last meeting taking place last week," says the department.
Pule says, after the most recent meeting with the Telkom board, she is "convinced" the department will be able to resubmit the options for Cabinet's consideration next month. "I am excited by the board's commitment and passion in addressing the challenges and opportunities facing Telkom."
Failed deal
This follows a series of delays after government, which has a 39.8% stake in the fixed-line incumbent, jettisoned a deal between Telkom and KT Corporation in June last year. The deal would have seen the telecommunications company issuing 20% more shares to gain about R3.3 billion, about a tenth of its annual revenue.
Since then, the industry has been on tenterhooks awaiting clarity and direction on the future of SA's core telecoms company. In the meantime, an inter-ministerial committee - led by Pule - was set up in August to put forward three options for Telkom.
The committee includes finance minister Pravin Gordhan, public enterprises minister Malusi Gigaba, state security minister Siyabonga Cwele, and military and veterans minister Nosiviwe Maphisa-Nqakula.
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