Telkom rival 'will need to raise R10bn'
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13 November 2000
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The planned second network operator (SNO) in the telecommunications sector would have to list to finance the required infrastructural roll-out investment, estimated at about R10 billion, Sango Ntsaluba, the chairman of Transtel, the state-owned telecommunications company, said on Friday.
The government, which is investigating the merger of three telecommunications parastatals, has set aside a stake for parastatals in the SNO.
If the government decided to merge Transtel with Esi-Tel, the telecommunications company under power parastatal Eskom, and Sentech, the state-owned broadcast signal distributor, the R10 billion investment figure was expected to come down slightly.
"It would definitely be suitable for the (SNO) listing to take place within three or four years after the listing of Telkom," Ntsaluba added. Part of the money would also be raised through an international strategic equity partner.
The local telecommunications market, worth R35 billion, is expected to grow by 9 percent a ...
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