http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.08Change: 0.04
R/$ = 13.44Change: 0.01
Au 1133.55 $/ozChange: -1.94
Pt 1014.50 $/ozChange: -1.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 05, 2002

R1bn SNO investment poised for take-off

Back
Africa|Cable|Eskom|Siemens|Training|Wireless|Africa|Equipment|Service|Services|Solutions|Infrastructure|Power|Cable|Operations
Africa|Cable|Eskom|Siemens|Training|Wireless|Africa|Equipment|Service|Services|Solutions|Infrastructure|Power|Cable|Operations
africa-company|cable|eskom|siemens|training|wireless|africa|equipment|service|services|solutions|infrastructure|power|cable-product|operations
© Reuse this With a R1-billion investment, 30% shareholders to the second network operator (SNO) Eskom and Transtel have completed the infrastructure, which includes fibre optics and switching for the SNO to begin operating.

Eskom Enterprises executive director Vusi Ngubeni says that the Eskom/Transtel partnership will invest a further R1-billion into the SNO to boost a smooth take-off when it begins operations.

The investment excludes previous investments in telecommunications on private networks.

For the first time, Telkom will be facing competition from a rival and this will be the harbinger of many interesting developments as, for the first time in South Africa, there will no longer be a monopoly.

Ngubeni says that the SNO will focus on improving services in the rural areas by investing more in these areas, where more than 70% of the population currently does not have access to telecommunications.

"We would like to see more people in rural areas have access to telecommunications for educational, business and training purposes," he says.

He explains that the SNO will improve services and will provide the South African public with an opportunity of choice, thus providing more bandwidth than currently available.

Ngubeni insists that Eskom Enterprises telecommunications infrastructure is already placed throughout the country both in rural and urban areas.

However, he is quick to point out that the extension of the announcement of the 19% black-empowerment entity and the 51% private entity has allowed the present incumbent to lock business by entering into long-term contracts with customers.

The announcement of the company that would have a controlling stake in the SNO was expected in May, but will now only be announced in October, thus extending Telkom's monopoly for a further five months.

"Consequently, the delay creates a barrier to entry for the SNO and provides the incumbent with an advantage to lock up business," bemoans Ngubeni.

He has appealed to the Independent Communications Authority of South Africa (Icasa) to speed up the process or, alternatively, issue a preliminary licence to Transtel, Eskom and a black economic empowerment entity to begin operations.

"We were geared for the May announcements as investments were already in place, hence there is a need to begin sweating the assets," he elaborates.

Ngubeni is optimistic that the SNO will provide quality services, avail customers with a choice of service provider and provide telephone facilities on demand as opposed to so-called begging, noting that it will not force its customers to sign long-term contracts.

There has been scepticism from certain sources who believe that what happened with the cellular phone market, with Vodacom and MTN benefiting from keeping prices artificially high, will occur in this instance, with a duopoly simply replacing the current monopoly.

Nevertheless, Ngubeni states that duopoly is not the best form of competition, but can be viewed as a start to the move towards competition.

He observes that it is a natural process to first institute a duopoly and then liberalise the market fully later, adding that prices drop due to declines in the number of people using the services as they would be shared between the two service providers.

He notes that there is added value to services when they are available and cost-competitive.

Further, Ngubeni believes that to slowly build up a customer base depends on how fast and stable business areas are developed.

Nevertheless, he cautions that there is a need to create a steady balance between commercial business and social responsibility, hence the SNO will work on this policy by investing in the upliftment of rural areas.

Commenting on the ability of Eskom and its partner Transtel to sustain the SNO, Ngubeni boasts that the two firms have experience in telecommunications.

Furthermore, Eskom Enterprises and Siemens Information and Communications group have signed a R400-million contract for the roll-out of Eskom Enterprises' fibre optic network infrastructure.

The fibre optic network together with Eskom Enterprises' existing private telecommunications network infrastructure will create the platform for Eskom's participation in the SNO.

Fibre optic cable is already being deployed on the existing Eskom power-line infrastructure. The purpose of this contract is to procure, install and commission the additional telecommunications equipment necessary to complete the desired Next Generation Network solution. Network rollout began in January and was completed by the end of April, in time to connect the first customers shortly after the liberalisation of the fixed tele- communications network.

"Our joint vision is to provide innovative telecommunications solutions and premium customer services for the SNO," says Siemens Telecommunications CEO Alwyn Martin. He explained that Siemens began preparing for deregulation of South Africa's telecoms industry in the mid-90s. Ngubeni explains that Siemens was chosen by Eskom Enterprises over its competitors because of its integrated technology offering, its strong regional presence in South Africa and on the African continent, and its comprehensive telecommunications business solution ability. Currently, Eskom Enterprises, in partnership with Econet Wireless, owns 70% of Lesotho Telecommunications.

After a year of operations in Lesotho, the firm was granted a licence in mobile phones and launched Econet EZI-Cel in May this year.

With the current 10 000 cellphone subscribers in Lesotho, the firm is close to reaching its first-year target of 12 000 subscribers.

In Nigeria, it is also involved in a 50:50 joint venture with NEPA for the fixed-line telecommunications in that country.

Ngubeni believes that electricity and telecommunications work hand-in-hand to enable speedy development of any country.
Edited by: nkolola halwindi
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Information Technology News
Frost & Sullivan ICT programme manager Gareth Mellon
It is increasingly widely accepted that deploying information and communication technology (ICT) infrastructure will bring about a surge in economic growth across Africa. However, the sourcing of billions of dollars required to deliver universal coverage was up for...
Although the Tshimologong digital precinct in Braamfontein, Johannesburg, is just one of the city’s districts dedicated to economic and social development, it aims to use information and communication technology (ICT) to help solve social and economic problems in...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
More
 
 
Latest News
Deputy President Cyril Ramaphosa
Deputy President Cyril Ramaphosa said on Wednesday that his attempts to improve the efficiency of South Africa's state-owned entities (SOEs) are not an attempt to get more votes in the 2016 Local Government Elections. He was updating the National Council of Provinces...
Frost & Sullivan ICT programme manager Gareth Mellon
It is increasingly widely accepted that deploying information and communication technology (ICT) infrastructure will bring about a surge in economic growth across Africa. However, the sourcing of billions of dollars required to deliver universal coverage was up for...
International advisory firm Merchantec’s CEO Confidence Index fell to 42.2 points in the third quarter of the year, compared with 45.4 points in the second quarter, remaining below the neutral 50-point level. This is the lowest score recorded in the Merchantec CEO...
More
 
 
Recent Research Reports
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96