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BUSINESS NEWS
Competition is coming for Telkom
Posted Thu, 06 Jul 2006

The Second Network Operator (SNO) will deliver business services from the end of the year and general services for the public from next year.

"As the network deployment of the SNO expands across the country, the company is expected to gradually start providing enterprise solutions towards the end of this calendar year, and consumer services for the broader public in the first quarter of next year," a statement released by the company on Tuesday read.

"The SNO has adopted a phased approach to rolling-out its services," company managing director Ajay Pandey said in the statement.

"We are currently in discussion with various potential customers and are now in advanced stages of readiness to deliver."

He said the SNO has been in discussion with Transnet and Eskom to procure telecommunications assets. Transnet had accepted an offer of R256-million from the SNO for a major portion of such assets created by Transtel, the telecommunications division of Transnet.

These assets included a substantial base of optical fibre cable, telecommunications equipment and facilities countrywide.

"The availability of these assets to the SNO will facilitate the early roll-out of enterprise and consumer services across the major cities".

The SNO is expected to challenge Telkom's monopoly in the fixed-line sector.

Sapa

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