Johannesburg - Second National Operator (SNO) black economic empowerment (BEE) shareholder Nexus Connexion has invited other companies to participate in opportunities around the new operator, which expects to launch its services in competition to Telkom later this year.
Nexus, which owns a 19% stake in the SNO, took out an advertisement in the weekend media calling for other BEE companies to register their interest on its website.
Chairperson Kennedy Memani says Nexus' role is to contribute to ensuring all aspects of BEE at the SNO are in order. The invitation applies to BEE players who would like to participate at a procurement level across the range of goods and services that the SNO will need.
On its website, Nexus describes itself as an "active, value-adding BEE partner", bringing to the party "experienced sectoral SMMEs (small, micro and medium-sized enterprises) to do the work, signed up development agencies to deliver capacity building services at grant funded rates, and deeply experienced strategic individuals to help open market opportunities and grow value through actions such as regulatory lobbying".
Its role also includes relieving the SNO of the BEE portion of purchasing administration.
Real competition
In its advertisement at the weekend, Nexus said the liberalisation of the South African telecoms market would create "real competition in the provision of telecommunications infrastructure and services to all our communities".
As part of the SNO, Nexus said it was "very conscious of delivering an affordable telecommunications service that our nation will be proud of".
As one of the first participants chosen to play a role in the SNO, Nexus has had to wait around since April 2002 to witness the operator's fits and starts as the government's communications department failed in two rounds of bidding to find the right strategic shareholder.
During that time, Nexus challenged various aspects of the process through the courts.
But, Memani says any legal challenges are officially "behind us", and Nexus is now part of the process of trying to build a successful company.
Telkom to lose up to 15% market share
The SNO shareholders were finalised last year, with the 51% shareholder including Indian group Tata as the frontrunner; it has a 26% overall stake, and two other consortia; CommuniTel and Two Consortium each getting 12.5%.
Transtel and Eskom Telecommunications have 30% between them, and Nexus, the remaining 19%.
The shareholders agreement was signed in August last year and regulator Icasa presented the SNO its license in December.
In January this year, the company chose Tata executive Ajay Pandey as its CEO, and also picked the other members of the board. It has yet to launch the branding that it will go to market with.
Since getting going, Memani says he has been relatively happy with the company's progress so far and says it is moving forward.
Incumbent fixed line operator Telkom expects to lose between 10% and 15% of its market share to the SNO and other smaller market entrants within five years.
Nexus shareholding
The shareholding of Nexus, according to its website, is spread across women's groups, youth groups, other developmental NGOs, labour union business arms and businesses represented by individuals and corporates - a total of 134 entities.
"All parties hold a meaningful portion of the equity stake, and all have been carefully selected and aggressively screened based on experience, successful track records, and their ability to add value to the SNO," Nexus said.
Memani is a business strategist who has worked with various government ministries on restructuring projects like privatisation and corporatisation.
He also chairs the Eskom Pension Fund.
Other directors include businessman and entrepreneur Eugene Ruiters, businesswoman Salukazi Dakile-Hlongwane, Sango Ntsaluba (who co-founded accounting firm Sizwe Ntsaluba), as well as Noluthando Langeni and Chris Luvhani.