06 Sep South Africa: South African to review plan to merge state-owned telcos in December
A plan to merge two of South Africa’s state-owned telecom firms into a single broadband network company will be reviewed by the cabinet in December, Reuters reported citing a senior government official. Robert Nkuna, director-general at the Department of Telecommunications and Postal Services said the government does not want “a top-heavy company, but a company that has sharp capacity to aggregate what exists in South Africa so we do not duplicate.”The government hopes to combine the fibre network and high-speed bandwidth capacity of Broadband Infraco with Sentech’s satellite capability, boosting connections to remote areas. Nkuna told a parliamentary committee the law would need to be amended to allow for the establishment of a National Broadband Network Co by around 2020. The firm will be able to strike access agreements with state-owned firms, such as power utility Eskom, and eventually private sector firms, said Nkuna.