Sentech clarifies R584 million misconception
Sentech has clarified that the return of R584 million of its broadband budget to the DoC isn’t tied to its decision to give back its 2.6GHz and 3.5GHz spectrum bands.
In a statement issued late on Friday (12 April 2013), Sentech explained that the broadband budget figure would remain available to the company, subject to the finalising of the DoC’s broadband policy.
The company explained, further, that the decision to return the spectrum was mainly driven by business considerations – specifically the ten-fold increase in spectrum fees.
This is counter to reports made by media, which said that Sentech had been asked by the Treasury to return R584 million budgeted for the network, which led to the company deciding to give back spectrum in 2.6GHz and in 3.5GHz while it awaited clarity from the department.
“The funds for broadband remain available subject to the Department of Communications (DoC) finalizing the broadband policy. The DoC has released the broadband policy document for public comment,” Sentech said.
“As stated at the Sentech media briefing held on the 9th of April 2013, our decision to return the broadband spectrum to Icasa was primarily driven by business considerations of the company’s requirements in the short term, particularly in light of the ten-fold increase in the broadband spectrum fees from R4 million to R40 million.”
“Sentech continues to participate in the DoC’s efforts to develop the broadband strategy and implementation plan.”
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