This includes an exclusive right at least until April 2002. Telkom also has exclusive access to spectrum from 1880 to 1920 MHz. This allows it to provide DECT and TDMA services mainly to rural and peri-urban communities. Moreover, there are grave doubts over the rural population's ability to pay. Meanwhile, relations between the minister and his director general, Andile Ngcaba, have worsened.
Observers believe differing political agendas are at the root.
They believe Ngcaba is closer to the new president, Thabo Mbeki, and likely to take a more active role in managing the sector. As a result, there is little clarity over Satra's power to smooth the way for the new operator. The prevailing uncertainty and delays prompted several potential foreign operators to walk away. Notably the Finnish operator Sonera said the third SA licence was neither its best nor its most promising opportunity. Naidoo and Ngcaba face having no bidders or of delaying the process or of accepting less attractive terms and conditions.