Ivy Matsepe-Casaburri, Minister of Communications, is expected to issue a policy direction for the Independent Communications Authority of South Africa (Icasa) to license Broadband Infraco, to allow strategic infrastructure investment in the communications and information technology sector.
Infraco will negotiate the license terms and condition with Icasa. Dave Smith, CEO of Infraco Broadband, said licensing the company will allow them to deliver on its promises which include reducing costs of broadband connectivity as an important way to help grow the economy of South Africa.
“There will be no central pricing agreements and all participants will market their capacity independently of each other in a competitive environment. As far as possible, participants will get the same rights to expand and trade their capacity as if they had built their own independent cable system,” said Dave.
The state remains the major shareholder, owning 25 percent of the equity. In February President Thabo Mbeki said Infraco’s licensing will be completed this year and that working with other governments on the continent the process of launching the Africa West Coast Cable (AWCC) would be completed.
By IT News Africa staff reporter
