The Democratic Alliance says it has written to Minister of Telecommunications and Postal Services\u00a0Siyabonga Cwele asking for clarity on the fate of state-owned company Broadband Infraco.<\/p>\n
According to the DA, Broadband Infraco was recently transferred to the Department of Telecommunications and Postal Services, but has now vanished from the books of the government.<\/p>\n
\u201cThe fibre cable network company is not listed in Budget 2015, apart from a brief mention of its enabling legislation in Vote 32, Telecommunications and Postal Services,\u201d said Marian Shinn, DA Shadow Minister of Telecommunications and Postal Services.<\/p>\n
While Broadband Infraco has not received transfers of operating funds from its previous department as it generates its own income, it did receive a capital injection at startup phase.<\/p>\n
\u201cIn Budget 2014, it was stated that investment would have to be made to upgrade its infrastructure if it was to compete with other network companies,\u201d said Shinn.<\/p>\n
\u201cIn Budget 2015, the company and its activities are noticeably absent from the chapter on entities that report to the Department of Telecommunications and Postal Services.\u201d<\/p>\n
\u201cIts only mention is the name of its enabling legislation among other Acts applicable to the department,\u201d she said.<\/p>\n
This absence, said Shinn, will further fuel speculation that the company \u2013 a non-core government asset \u2013 is to be sold. \u201cIf public speculation proves to be true, the sale could be to Telkom.\u201d<\/p>\n
\u201cIn the interests of staff stability and certainty in the Information and Communications Sector, I appeal to Minister Cwele to clarify the situation as soon as possible,\u201d said Shinn.<\/p>\n
It has been speculated that Broadband Infraco may be up for sale.<\/p>\n
Infraco was seen a key player in government\u2019s quest to provide broadband access and connectivity to underdeveloped and under-serviced areas and a key driver to economic growth through increased broadband penetration.<\/p>\n
However, President Jacob Zuma announced during his State of the Nation address that Telkom has been designated as the lead agency to assist with its broadband roll-out initiative.<\/p>\n
Broadband Infraco up for sale?<\/strong><\/a><\/p>\n No signs of profit at Broadband Infraco<\/strong><\/a><\/p>\n R100 billion needed for SA broadband: Infraco<\/strong><\/a><\/p>\n