SNO network deal in doubt

8 Aug 2006

The South African government has reportedly decided against selling telecoms infrastructure owned by a utility group to the country’s second national operator (SNO) in a move which could delay the launch of the first major competitor to dominant provider Telkom. The networks owned by power supplier Eskom are worth ZAR2 billion (USD294.2 million) according to a report from Business Day and the government is thought to be considering a plan under which it would retain ownership of the infrastructure and then lease it to the SNO. The SNO is set to launch services in the first quarter of 2007, with the launch expected to lead to lower tariffs for telecoms services.