SNO saga could be over as Nexus withdraws complaint

28 Feb 2005

South Africa’s plans to launch a second national operator (SNO) to compete with Telkom SA took a major step forward after Nexus, which owns a 19% stake in the venture, withdrew its application for a judicial review into the licensing process. The threat of legal action looked set to derail efforts to create the SNO, and Nexus’ decision paves the way for all six shareholders in the new entity to now formulate a business plan and fashion a shareholder agreement for the running of the new company. Nexus had applied for the injunction over concerns that the Telecoms Minister Ivy Matsepe-Casaburri had exceeded her authority in awarding shares in the SNO to Two Consortium and CommuniTel. Both groups has come up short in their applications for a controlling stake in the new operator but were nonetheless awarded 12.5% each in the SNO.

South Africa