26 October 2006
The Minister of Public Enterprises, Alec Erwin, has welcomed the
announcement in the Medium Term Budget Policy Statement that the new âInfracoâ
would receive funds in this financial year to implement the required
investments to service the needs of Neotel.
This will have the effect of speeding up the introduction of Neotel services
and will have a positive impact on the availability and cost of broadband
capacity in the economy.
The budget allocation makes it possible to move toward the establishment of
a new state-owned enterprise and to complete various contractual and regulatory
negotiations. This will also allow more detailed planning with the large
science projects dealt with in the Medium Term Budget Policy Statement (MTBPS)
that are one of the main drivers behind the State securing the key broadband
capacity in the previously Eskom and Transnet systems. This is an important
step in the ongoing preparation of the Square Kilometre Array (SKA) bid and the
development of the South African National Research Network.
Minister Erwin will make more detailed announcements toward the end of
November. However, it is necessary to dismiss inaccurate speculation about the
meeting held between the Deputy President, Minister of Communication, Minister
of Trade and Industry and the Minister of Public Enterprises.
This meeting was one of the many briefing meetings convened by the Deputy
President to get reports on progress in key sectors. The meeting therefore
covered a very wide range of issues in the whole of the information and
communications technology sector. It was the case that South Africaâs undersea
cable capacity was discussed. This includes South Africaâs full support for the
Eassy Cable and the requirements that will be needed for the SKA and the 2010
World Cup.
What role âInfracoâ can play was a matter for discussion and is currently
under examination. This last aspect will be dealt with more fully in the
abovementioned briefing.
Enquiries:
Ms Gaynor Kast
Cell: 083 271 4350
Issued by: Department of Public Enterprises
26 October 2006
Source: Department of Public Enterprises (http://wwww.dpe.gov.za)
