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Transnet accepts SNO offer for certain telecom assets

Subsequent to receiving its PSTS licence on 9th December 2005 from ICASA, the SNO has been working towards the introduction of its products and services to various customer segments. The SNO has been planning, procuring & deploying a national telecommunications network based on leading-edge next-generation technology.

As envisaged by the Telecommunications Act, the SNO has been in discussion with Transnet and Eskom for procuring relevant telecommunications assets. Transnet has now accepted an offer of R256mn from the SNO for a major portion of such assets created by Transtel, the telecommunications division of Transnet. The infrastructure in question does not form part of the operational private network operated by Transtel but was deployed specifically in preparation for the SNO opportunity. These assets include a substantial base of deployed optical fibre cable as well as 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 as contemplated by the SNO.

According to the MD of the SNO, Mr. Ajay Pandey, “The SNO has targeted the launch of its initial wholesale services in mid-2006, and in line with this projection, plans are well underway towards introducing international wholesale voice and some international data services to other telecom operators. The SNO has adopted a phased approach to rolling-out its services. We are currently in discussion with various potential customers and are now in advanced stages of readiness to deliver.”

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.