The new operator has not yet disclosed how much it plans to invest in infrastructure, estimated by Merrill Lynch at R9bn.

“That is a little on the generous side, I don’t think our peak funding will go to that amount,” Socikwa, chairman of the operator’s steering committee, said yesterday.

Several members of the consortium — which houses Transtel, Eskom Enterprises, Nexus, CommuniTel and Two Telecom — are in India to finalise those details with its foreign partners the Tata group and VSNL.

The new network was originally expected to launch in May 2002, when Telkom’s monopoly expired.

Despite a delay of three years, which has allowed Telkom to entrench its position, Socikwa said financial backers still see a strong enough business case to support the venture.

“We are speaking to a number of financial institutions and I don’t think we will have any difficulty in raising funds,” he said.

“The licence on its own is a significant asset and the quality of the partners in the second network operator are of sufficient ilk for various funding institutions not to be too nervous to commit to the operator.

“We have spoken to a few who are more than happy to give us the funding we require.” Socikwa would not say whether the loans would come from local or international financiers.

The consortium expects in February to announce which equipment supplier has won a tender to set up a network to enhance the national networks already run by Eskom and Transtel.

Details of the management structure, its network roll out targets, funding needs and new trading name may be announced at the same time. Socikwa was not forthcoming yesterday.

“We are entering a market where there is some very tough competition, not just from the fixed-line operator but from others as well,” he said.

“The distinction between mobile and fixed lines are blurring, so what we may have considered an ally yesterday may be a vicious competitor today.”