Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      South Africa loosens media ownership rules – but keeps one hand on the remote

      16 July 2025

      Eskom targets 32GW green energy shift by 2040

      16 July 2025

      MTN Group appoints new chief enterprise officer

      16 July 2025

      Kruger Park’s white rhinos get a hi-tech lifeline

      16 July 2025

      The real cost of a cashless economy

      16 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025
    • In-depth

      The 1940s visionary who imagined the Information Age

      14 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025
    • TCS

      TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

      16 July 2025

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025
    • Opinion

      A smarter approach to digital transformation in ICT distribution

      15 July 2025

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Duncan McLeod » Why Cyril is going after Telkom

    Why Cyril is going after Telkom

    By Duncan McLeod25 January 2022
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    The author, Duncan McLeod, argues that President Cyril Ramaphosa’s decision to seek an SIU probe at Telkom is politically motivated

    It’s all about the politics, as it always is in South Africa.

    President Cyril Ramaphosa’s surprise instruction to the Special Investigating Unit (SIU) to probe Telkom is likely much more about him winning re-election at the big ANC conference in December than a sudden desire to unearth old dirt at the telecommunications group.

    Let me explain my thinking.

    You see, Ramaphosa has made digital terrestrial television migration and the allocation of radio frequency spectrum to telecoms operators signature policies of his administration — which, of course, he is quite correct to do.

    Read: Ramaphosa orders wide-ranging probe into Telkom

    But if he can’t deliver them this year, in time for the December conference, then his enemies –the “radical economic transformation” (RET) faction of the ANC loosely grouped around his predecessor, Jacob Zuma – will use it to bash him over the head and try and get their candidate (Lindiwe Sisulu?) elected.

    In short, Ramaphosa must deliver digital migration and spectrum allocation – two complex and interlinked projects – this year or face a potential political backlash from his enemies in the RET camp at the December conference.

    But there’s a problem. Telkom and e.tv have thrown spokes in the wheel that threaten to derail both projects – and bring a political disaster down on Ramaphosa’s head.

    Telkom and e.tv have thrown spokes in the wheel that threaten to bring a political disaster down on Ramaphosa’s head

    Telkom is suing Icasa because it’s unhappy with the way the communications regulator has managed the process of licensing spectrum. E.tv wants more time for digital migration to be completed – a minimum of 15 months – to protect its commercial interests, and so it’s taken communications minister Khumbudzo Ntshavheni to court.

    Both companies are, of course, within their constitutional right to protect their interests: if they feel aggrieved, they are entitled to approach the courts. But this is far from politically palatable for Ramaphosa, for the reasons outlined above.

    What makes matters more interesting is that government holds about 40% of Telkom’s equity. Government has always said it keeps this stake for “strategic” reasons. It’s quite clear, though, that Ntshavheni has not been successful in pressuring Telkom to back down – and you can be sure she’s been lobbying the company hard. So much for that strategic stake.

    Political problem

    Telkom did last week withdraw an interdict application against Icasa – perhaps a sop to the minister – but it is still pressing ahead with its court challenge, on the merits of its application, on an urgent basis. And lawyers I’ve spoken to who are familiar with Telkom’s case say there’s a reasonably good chance it will emerge victorious.

    If Telkom does win – the matter will probably be heard in March or April, depending on the availability of a judge and senior counsel – then it’ll become a big political problem for Ramaphosa. Why? Because the auctioning of the spectrum will then likely be delayed beyond the ANC conference. This while Icasa comes up with a new process that complies with the court judgment (and is satisfactory to all market participants, including Telkom).

    And then there’s the e.tv case, set to be heard by the high court from 8 March. A victory there will mean digital migration, which is linked to spectrum allocation, will also be delayed into 2023.

    President Cyril Ramaphosa

    Could this explain why, apparently out of the blue, Ramaphosa issued the proclamation to the SIU over allegations that, frankly, are very old – going back to mid-2006, or 15 years ago? Perhaps there is merit in revisiting the allegations – it was a certainly a sordid time in Telkom’s history – but the timing strongly suggests a political motive.

    Could it be that the president and his communications minister are using the threat of an SIU probe as a blunt instrument to try to get Telkom to back down over its litigation?

    In the absence of evidence to the contrary, it seems fair to conclude that Telkom has found itself caught up in the middle of the political war that is tearing South Africa’s ruling party — and the country — asunder.  – © 2022 NewsCentral Media



    Cyril Ramaphosa Duncan McLeod e.tv Icasa Khumbudzo Ntshavheni Telkom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleNvidia preparing to walk away from ARM mega deal
    Next Article Ramaphosa orders wide-ranging probe into Telkom

    Related Posts

    Solly Malatsi seeks out-of-court deal in TV migration fight

    15 July 2025

    South Africa’s telcos battle to monetise 5G as 4G suffices for most

    15 July 2025

    Trump tariffs could wreck South Africa’s vehicle manufacturing industry

    14 July 2025
    Company News

    Ransomware in South Africa: the human factor behind the growing crisis

    16 July 2025

    Mental wellness at scale: how Mac fuels October Health’s mission

    15 July 2025

    Banking on LEO: Q-KON transforms financial services connectivity

    14 July 2025
    Opinion

    A smarter approach to digital transformation in ICT distribution

    15 July 2025

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.