Pick me!! Pick me!! Bidding war for South African stake continues

3 Jul 2003

The two remaining firms in the bidding war for 51% stake in South Africa’s second fixed-line operator must have their bids publicly scrutinized, as final offers are reviewed. The second operator is being created to rival Telkom, the country’s incumbent fixed-line operator. The two groups, CommuniTel and Two Consortium, are both making promises of intensive capital investment and severe cost cutting in their offers. South Africa’s telecoms regulator, the Independent Communications Authority of South Africa (ICASA), has asked for public comment during negotiations. Two Consortium has offered investment of ZAR9 billion over ten years, whilst CommuniTel has said it will invest ZAR11 billion into infrastructure over the same time frame. According to the latest schedules, ICASA’s recommendation fin favor of one of the contenders is likely to be given to the Communications Ministry by 15 August.

South Africa