The Second National Operator (SNO) and Transnet, the state-owned freight-transport group, recently announced the finalisation of the sale by Transnet and purchase by the SNO of a portion of the telecom network infrastructure that had been laid by Transnet in the metro areas in anticipation of the SNO. The companies today formally signed the sale/purchase agreement for these assets, valued at R256m. The assets include high capacity fiber optic networks and facilities in the metropolitan areas of Johannesburg, Pretoria, Durban, Cape Town, Port Elizabeth and East London. The integration of these assets into the overall SNO nationwide telecom network is expected to be completed by October this year, in-line with the company's plans to introduce initial telecommunications services for enterprises by the end the year, following the launch of wholesale services within this month.

Mr. Ajay Pandey, Managing Director of the SNO, expressed his excitement about the conclusion of this transaction and re-affirmed the company's plans to introduce its first services shortly. According to Mr. Pandey, “We are on track to switch on international wholesale services at the end of August. This transaction serves as a major milestone for the SNO. The availability of these assets to the SNO from Transnet will further facilitate the introduction of our enterprise services by the end of this year.”

The SNO has been planning, procuring and deploying a national telecommunications network based on leading-edge next-generation technology. Its access to these assets will facilitate the roll out of enterprise and consumer services across the major cities of South Africa. The SNO plans to introduce consumer services for the broader public in the first quarter of next year.

Transnet has a 15% shareholding of the SNO and has expressed its long-term support for the SNO that is currently building up its organization and deploying its network across the country.