Picture: CHARLES GALLO/GALLO IMAGES
Picture: CHARLES GALLO/GALLO IMAGES

TELECOMMUNICATIONS and Postal Services Minister Siyabonga Cwele and Finance Minister Pravin Gordhan are addressing issues involved in the government’s plan to appoint Telkom the lead agency for its broadband roll-out programme, MPs heard on Tuesday.

President Jacob Zuma announced in his 2015 state of the nation address that Telkom would be the designated agency for the work. He said that the Cabinet decided the government should enter into a formal partnership with the fixed-line operator, which was expected to expedite the roll-out of high-speed broadband, minimise duplication by government entities on infrastructure and rationalise the work of state-owned companies in the sector, such as SITA and Broadband Infraco.

Telkom had more than 147,000km of broadband infrastructure, while Broadband Infraco, the other state-owned entity, has about 13,000km of fibre.

The department’s deputy director-general in charge of ICT infrastructure support, Tinyiko Ngobeni, said in a briefing to Parliament’s telecommunications and postal services committee that the Cabinet had asked the department to establish the value-for-money and legal frameworks for the e-partnership with Telkom. The value-for-money plan included the policy, financial, technical and economic benefits of the partnership, he said.

"Cabinet has approved the partnership with the lead entity for broadband roll-out. Due process to facilitate the appointment is underway," he said.

Mr Ngobeni said a partnership was essential as the government did not have the funds to invest in broadband infrastructure. He said the government’s infrastructure network lacked interconnectivity.

Democratic Alliance spokesman on telecommunications Marion Shinn expressed concern that the appointment of Telkom was proceeding without any tender being issued, as was required for government procurement. She stressed that the project was huge and expensive, and private-sector involvement would be necessary.