I Matsepe-Casaburri: Launch of Second National Operator Neotel

Opening remarks by the Honourable Minister of Communications,
Dr Ivy Matsepe-Casaburri at the launch of the Second National Operator

31 August 2006

Programme Director,
Honourable chairperson,
Honourable colleagues,
Minister of Public Enterprises - Alec Erwin,
Chairperson of the Independent Communications Authority of South Africa (ICASA)
– Paris Mashile,
Chairperson of Board of Universal Service Agency of South Africa (USASA),
Director General of Public Enterprises,
Leaders of the new operator,
Leaders of other of companies,
Distinguished guests,
Ladies and gentlemen,

Today, at last a new South African baby is born. This long awaited company,
which was nurtured in our minds and in our plans, finally embarks on its
exciting journey and takes its place among its peers. We hope it will be a
contributor to the success of the sector and to the success of the nation.

South African telecommunication has undergone fundamental reform and change
in order to meet the dynamic challenges of our times and the future, the
policies and legislature reforms that we have instituted have all been in
response to the economic and social changes, addressing the challenges of
globalisation, and most importantly the development gap.

The launch of the Second National Operator, Neotel, helps us respond to some
of the most important economic challenges, namely competitiveness of our
economy, sustainable investment and meeting our national development goals,
especially that of universal service.

We have a saying that goes, “neo ea ngwana ke tshepo ya sethjaba”. Ladies
and gentlemen, for us as government, this moment represents the unveiling of a
gift from our democracy. A gift that we believe represents hope for our country
as we drive to bring affordable access to telecommunication services for all.
We are inspired by the launch of Neotel, noting that we have indeed entered the
“Age of Hope” referred to by the President in his State of the Nation Address.
We believe that the combined intellectual capacity and expertise of Neotel
shareholders and management will help to bring the benefits of the information
society to our businesses and to our people. We look forward to the Neotel
delivering on the targets set in its licence, so that everyone, from a
businessman in Sandton, to a school learner in Botshabelo, can benefit from the
rollout of its services.

At this point, I would like to thank the Independent Communications
Authority of South Africa (ICASA), and particularly its Chairperson, Councillor
Paris Mashile, for fast tracking the licensing of this new operator. We must
also thank our two state-owned enterprises, Transnet and Eskom, and Nexus
Connexion's contribution to the establishment of the new operator, for their
patience and their immense support.

We are indeed fortunate to have found in the Tata Group, and its subsidiary,
Videsh Sanchar Nigam Limited (VSNL), not only a global leader in
telecommunications that is passionate about investment in South Africa, but
also a partner which shares our values and commitment to meet development
challenges. This partner hails from India, a country with which we have a
special relationship. Our countries share a colonial past, a fact made more
poignant by the hundredth anniversary this year of Satyagraha, the non-violent
struggle started by Mahatma Gandhi in our country and continued in India. There
is much our two nations can learn from each other.

The operator we have come to launch today, Neotel, is a truly South African
company, which blends the best of local and global expertise. It is uniquely
positioned to live up to the spirit of our national motto, demonstrating “unity
in diversity”.

We congratulate Neotel on its launch today, and wish it every success in the
competitive fixed line market it is now entering.

Thank you.

Issued by: Department of Communications
31 August 2006

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