South Africa's Second Network Operator (SNO) received its Public Switched Telecommunications Service licence from the Independent Communications Authority of SA (Icasa) on Friday.

The licence was presented at a ceremony at the Sandton Convention Centre.

Telkom congratulated its new rival earlier in the week, saying it looked forward to the competition.

"Telkom would like to congratulate Icasa and the SNO shareholders on completing the SNO licensing process and achieving this important milestone," the company said.

"Telkom welcomes further competition from the SNO in what is already a vibrant and highly competitive communications market. We believe increased competition is beneficial to the economy of South Africa."

The licensing of the operator is more than two years behind schedule.

A recent report said that about half of South Africa's top 350 companies would consider switching to the SNO if it got off the ground soon and offered competitive prices.

The SNO is controlled by Tata Group of India, which holds 26 percent.

Its shareholders include Nexus Connexion, Two Consortium, CommuniTel and state-held entities Transtel and Esitel, Transnet's and Eskom's telecommunications arms.

Sapa

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