Date: 04/02/2003
Source: Ministry of Communications
Title: Matsepe-Casaburri: Process towards awarding 51% stake in SNO


MINISTER OF COMMUNICATIONS MATSEPE-CASABURRI, OUTLINES THE PROCESS TO AWARD THE 51% STAKE IN THE SECOND NATIONAL OPERATOR

I have indicated in my media statement of 31 January 2003 in which I concurred with Icasa's recommendations not to award the stake to any of the two bidders, that I would be exercising my powers relating to alternative methods of licensing as contained in Section 35 A (a) of the Telecommunications Act of 1996 as amended.

In line with these provisions of this section of the Act I have issued a notice in the Government Gazette (number 24361) yesterday outlining the process to be embarked upon to allocate the 51% equity stake in the Second National Operator (SNO).

The allocation of the stake to local and international investors in the Second National Operator will be made by expression of interest to pre-qualify for competitive negotiation and/or one on one negotiation.

A Second National Operator committee ("SNO Committee") accountable to me has been established under the chairmanship of Pakamile Pongwana, Deputy Director-General of Telecommunications.

The SNO Committee will manage the entire process with the assistance from legal and economic advisors I am appointing for this purpose.

In executing its task the Committee shall recommend a short-list of negotiating parties to me as derived from all those who would have responded to an Invitation To Express Interest to pre-qualify to be short-listed as a potential negotiating party.

All negotiations conducted as part of the competitive and/or one-on-one negotiations shall be confidential and without prejudice.

Applicants, who responded to the Invitation to Apply for the Provision of Public Switched Telecommunication Services contained in Notice 786, shall not be precluded from applying to pre-qualifying for short-listing as potential negotiating parties.

I will take the decision on the successful applicant within 90 days and after consultation with the Independent Communications Authority of South Africa (ICASA) "the Authority", Department of Public Enterprises, Eskom, Transnet and Nexus Connexion and any other party I may deem necessary.

I shall make public my final decision and instruct Icasa to proceed with the processes contemplated in clauses 6,7 and 8 of Schedule to Notice 755 of 2002 as published in GG23427 of May 2002.

The Second process I will be initiating through a notice in the Gazette relate to the issuing of the Invitation To Express Interest. The Invitation to Express Interest to pre-qualify and conduct competitive negotiation and/or one-on-one negotiation shall be issued by me by way of a notice in the Government Gazette, within 21 days, to pre-qualify to be short-listed as a potential negotiating party. In addition a third notice will be issued in the Gazette in due course indicating the successful bidder.

Once more I wish to reiterate our commitment to the speedy introduction of competition in telecommunications sector much to the benefit of the market and consumers.

For details refer to notice published in Government Gazette number 24361 of 2003
Further enquiries contact: Dr Andile Ngcaba on (012) 427 8166, 082 990 5122
Jerry Majatladi on (012) 427 8017, 082 889 3381
Issued by: Dr Ivy Matsepe-Casaburri, Minister of Communications
4 February 2003