10 September 2002
Johannesburg - As part of the ongoing process of restructuring state-owned assets, the Minister of the Department of Public Enterprises, Jeff Radebe, has announced plans to consider the restructuring of Fleetcall (Pty) Ltd, a public radio trunking network operator in which Transnet Group holds a 50% stake.
Fleetcall, which was established more than nine years ago, is operating profitably and successfully and offers an ideal opportunity for developing black economic empowerment participation in this important segment of the communications industry.
The Department of Public Enterprises, through Transnet, and their partner shareholder, Grintek Group Limited, have jointly agreed to divest of 100% of the shares in Fleetcall, as a going concern, preferably to a consortium which comprises an industry player and an institutional investor with strong black economic empowerment representation.
This proposed divestiture is an important indication of the government's continued commitment to proceed with an appropriate and properly managed process of restructuring state-owned assets. Clearly, where assets are deemed non-core or not of strategic importance, or where they can be better developed in the private sector, they will be divested.
The Department of Public Enterprises is continuing to review the rest of the portfolio of state-owned assets and further announcements will be forthcomming, after consultation and engagement with appropriate stakeholders.
Fleetcall's Radio Trunking Network, the only VESA approved communication network is ideal for real time data and voice communications. The network's coverage has significantly been improved over the last two years. Over and above the published coverage, a further 11 sites will be added during this financial year. Existing and future coverage provides excellent mobile voice and data communications, which facilitate driver and fleet management (including vehicle tracking).
Non-users do not realise how many features are already being offered by the proven and matured MPT 1327 technology, used in the Fleetcall's Trunked Radio Network. It is a mature and dignified technology, which will more than likely satisfy the mobile and fixed user's needs for the foreseeable future. MPT 1327 Radio trunking technology is a very efficient way of re-using communications frequencies, which is a very scarce national resource. The efficient use of the frequency spectrum allows a National Network Operator such as Fleetcall to provide a more cost effective voice and data service to end users compared to a number of private radio networks.
Fleetcall provides its services to the end users via a number of Service Providers. Typical users of the Network are major long and short haul courier companies, emergency services, security services and support services. Another example is that local authorities in some areas utilise radio trunking to manage electricity pre-payment consumption of consumers. It effectively allows the electricity provider to switch the power off once agreed credits have been utilised.