Telkom lists later this year, possibly with a market capitalisation in the order of R100 billion. There is also the intention to list Vodacom, also in the multi-billion rand range. Government has yet to decide whether it will make one, two or more licences available to competitors to Telkom. They may be licences to operate fixed-line networks or may have a cellular licence thrown in as well. Through realising value in putting some of its shares on the market in the Telkom IPO and raising money from auctions, government stands to be able to cut a significant part of its debt.
Lower debt means a lower interest bill, less pressure on interest rates and tax cuts.
All this means much higher growth accompanied by lower prices through competition in the key telecommunications sector. So while parts of the landscape are still black out there, the colloquium does herald a whole new era for the burgeoning ICT sector. The real ICT revolution is yet to happen in South Africa. Yes, we've seen an early bubble but the real stuff is coming in the next few years as Telkom's monopoly comes to an end and the sector is freed up. BMI-Tech estimates that the SA internet user base will meanwhile balloon from its present two million to eight million in 2005.