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Broadband Infraco, the state-owned infrastructure provider that is expected to launch commercially within the next few weeks, pumped R407m into its network in the 2010 financial year, up from R373m in 2009.
The increase is mainly due to the cost of network operations, maintenance and repairs, the company says in its latest annual report.
State-owned telecommunications infrastructure provider Broadband Infraco has used its latest annual report to criticise a decision not to grant it a service licence under the Electronic Communications Act. It says the decision, taken by the Independent Communications Authority of SA (Icasa) and backed by communications minister Siphiwe Nyanda, undermines financially its investment in a new undersea cable system.
MTN president and CEO Phuthuma Nhleko has described suggestions that India’s Bharti Airtel poses a big threat to the JSE-listed telecommunications group’s interests in Africa as “exaggeration and oversimplification”. Analysts this week raised concerns that Bharti, which recently acquired Zain’s African assets, could start a price war with MTN in several key markets, including Nigeria.
Government remains committed to switching off analogue terrestrial television, and completing the switch to digital broadcasts, by November 2011. But communications minister Siphiwe Nyanda has conceded the deadline may have to be revisited if the country decides to adopt a new standard for digital television. Nyanda was speaking at a press conference in Pretoria, where he announced the new members of the Digital Dzonga advisory council, which will advise government on the country’s planned migration from analogue to digital terrestrial television.
The sale of SA technology powerhouse Dimension Data to Japan’s Nippon Telegraph and Telephone Corp (NTT) is a big step closer. The companies announced on Thursday that NTT’s proposed R24,4bn buy-out of Didata has been given the nod by both the European Commission and Australia’s Foreign Investment Board.
MTN SA plans to build a third-generation (3G) mobile network to offer wireless broadband to consumers in outlying areas. It will build the 3G network at 900MHz. TechCentral has learnt that MTN expects significant growth in demand for broadband services outside SA’s cities over the next few years and so is keen to boost its 3G coverage in these areas.
Telecommunications group MTN faces tougher times in the 20 territories in which it operates outside SA as regulators across Africa and the Middle East begin to flex their muscles. Outgoing group president and CEO Phuthuma Nhleko says operators across the region are facing tougher regulations.
The board of Africa’s largest mobile phone operator, MTN, should be in a position to announce the name of the group’s new CEO “within the next month or two”. That’s the word from outgoing CEO Phuthuma Nhleko, who was speaking during question time at the presentation of the group’s interim financial results in Johannesburg on Thursday.
Phuthuma Nhleko, group president and CEO of JSE-listed emerging markets telecommunications group MTN, has not completely given up on the idea of concluding another big acquisition. “Though we realise there are far fewer opportunities out there, we cannot afford to be inactive because the terrain is changing all the time,” Nhleko told analysts at the group’s interim results presentation in Johannesburg on Thursday.
The strong rand has taken its toll on MTN, Africa’s largest mobile operator MTN. In the six months to 30 June, the group’s revenue has fallen 2,2% to R56bn. However, revenue would have been 12%, or R8,2bn, higher than reported if the rand had not been as strong.
