ICASA rejects SNO bidders
The Independent Communications Authority of SA (ICASA) has rejected both bids for the second national operator, which would have provided competition to Telkom and liberalised the telecommunications sector.
During the first round of bidding last year, ICASA also decided that neither of the first bidders, Optis or Goldleaf, was suitable.
The public is bound to criticise today's decision because it is widely accepted that the telecommunications sector needs to be liberalised in order for true innovation to occur and telecommunication costs to come down. In addition, South Africa has made a commitment the WTO to introduce a duopoly this year. Potential legal challenges from the bidders are not ruled out either which might delay future plans further.
The minister is not bound to follow ICASA's recommendation although it is unlikely that she would disregard the recommendation.
