JOHANNESBURG, South Africa-Cell C, the consortium backed by Middle Eastern conglomerate Saudi Oger with CellSaf as a local partner, has been officially named as the preferred consortium for the third cellular license in South Africa. Cell C linked up with GTE shortly before the bids were submitted in June 1999 to the South African Regulatory Authority (SATRA).
SATRA Deputy Chairman Eddie Funde in his announcement said Cell C achieved the highest score in the process for its sound and viable business plan, its foreign and empowerment partners providing the required financial resources, its impressive black-empowerment aspect and its ability to compete with existing cellular networks Vodacom and MTN. It would also contribute to the achievement of universal service objectives to provide telephony to rural areas and create numerous job opportunities.
The “day of reckoning,” as it was described by Funde, arrived after long delays and in a storm of allegations of irregularities in the allocation process. The chairman of SATRA, Nape Maepa, recused himself from the process a week earlier because, as it was said in a formal statement, “a former business associate of his is a trustee in one of the foundations associated with an applicant.”
The other five bidding consortia have until 14 March 2000, to respond to SATRA’s decision. Their input will be considered, and a final recommendation made to Minister of Communication Ivy Matsepe-Casaburri. She will consider the information and formally award the license by the end of March.
