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Telkom’s options to be retabled with Cabinet in March – DoC

26th February 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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The future of embattled telecommunications group Telkom was still being mulled as the Department of Communications (DoC) and the JSE-listed group finalised its options for Cabinet consideration.

DoC spokesperson Siya Qoza said on Tuesday that Cabinet had returned the options Communications Minister Dina Pule had tabled in October and the department now planned to submit revised recommendations for Cabinet scrutiny in March.

Pule was, last year, tasked with developing strategic solutions to turn the struggling firm around after Cabinet rejected a potential strategic deal wherein South Korean firm KT Corp offered to buy a 20% stake in the group.

“The options needed to take into account the launch of the Strategic Integrated Plan (Sip) 15, which deals with broadening access to information and communication technologies as part of the Presidential Infrastructure Coordinating Commission,” Qoza said in a statement.

Sip 15 was launched on December 3.

Telkom played a strategic role in developing South Africa's 2020 broadband ambitions and needed to get “back on its critical centre” of delivering information and communication technology services to South Africans.

Government holds a 39.8% direct shareholding in Telkom with State-owned investment arm, the Public Investment Corporation, owning another 10.9%.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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