MEDIA STATEMENT
MINISTER FOR POSTS, TELECOMMUNICAITONS AND BROADCASTING, JAY NAIDOO
THURSDAY 10 OCTOBER 1996
There has been major progress in the restructuring of the telecommunications sector and the search for a strategic equity partner for Telkom SA Limited. This is a critical step to ensure that we are bringing affordable telephone services to the majority of South Africans. Since the advent of democracy, the government has taken a number of key steps to create a climate conducive to investments that will ensure that the economy grows as a first step in the attack against poverty and joblessness.
It is in this context that the Ministry of Posts, Telecommunications and Broadcasting has mandated by Cabinet to undertake extensive work in the restructuring of the telecommunications sector and the process to seek a strategic equity partner for Telkom SA Limited.
Cabinet approved the sale of between 20 and 30 per cent equity stake in Telkom to a consortia of international telecommunications operators. Through negotiatioons with trade unions and other partners, and in addition to the SEP stake, the government will make a further ten per cent of Telkom SA Limited available for the economic empowerment of previously disadvantaged communities and workers. This will include schemes targeted at Telkom workers and the South African telecommunications sector.
The following companies which have satisfied the Ministry's initial selection criteria for strategic equity partnership with Telkom and have been selected to proceed in a due diligence exercise. These are:
-- Deutsche Telekom (Germany) -- France Telecom (France) -- KPN (Netherlands) -- Malaysia Telecom (Malaysia) -- Southwestern Bell Communications (USA) -- Stet (Italy) -- Telia (Sweden)
The Ministry will encourage the formation of consortia between parties of complementary strengths. The short-listed parties may introduce additional parties into their consorita subject to them satisfying the Ministry's sElection criteria. There are no preferred bidders.
Much progress has been made in discussion with trade unions in the telecommunications in terms of the National Framework Agreement. The government and labour are very conscious of the need to provide employment including a specific focus on human resource development are improved.
Cabinet has also resolved to conclude the SEP process by April 1997, mindful of the urgency of the RDP requirements and to ensure continued investment and stability in the sector.
The White Paper provisions regarding the manufacturing sector are to be implemented to ensure the development of the local equipment manufacturing base and encourage the supply of locally manufactured telecommunications content at affordable prices. To this effect, a committee of the Department Posts, Telecommunications and Broadcasting, Department of Trade and Industry, Department of Arts, Culture, Science and Technology is in the process of being set up with labour and employer representatives.
The "one million line" project which has been integrated by Telkom into "Vision 2000" to ensure the necessary participation of the SEP in the process. This project is vital for the expansion and modernisation of the network.
The restructuring should include commitments to training in the new skills. This requires co-operation on appropriate industrial sector strategies between government, labour, and employers.
FOR FURTHER INFORMATINO CONTACT CONNIE MOLUSI (021) 462 1632