Two state firms will merge to form giant digital infrastructure company, says Ndabeni-Abrahams

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The government is expediting plans to merge two state companies, signal distribution giant Sentech and telecommunications entity Broadband Infraco.

Communications minister Stella Ndabeni-Abrahams announced the planned merger in Pretoria on Thursday.The government is expediting plans to merge two state companies - signal distribution giant Sentech and telecommunications entity Broadband Infraco - to form one huge, state digital infrastructure company.

In a press briefing in Pretoria on Thursday, communications minister Stella Ndabeni-Abrahams said the move was one of a number of institutional reforms the government was taking as part of its fourth industrial revolution campaign. She said her department was also finalising a business case and awaiting certification from state law advisers to repurpose the State Information Technology Agency as a fully fledged state IT company.

“We are further engaging our counterparts to ensure that non-broadband state-owned entities that self-provide broadband, such as Sanral, Prasa, Eskom and Transnet, are prohibited from entering the commercial broadband market, to avoid the state distorting a well-functioning liberalised market,” Ndabeni-Abrahams said.

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Lets hope for real, they are staye firms & nit 27% share holders

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