Tuesday, May 12, 2009

South Africa: the new minister is mystery, unknown to the sector and an unexpected appointment

[Reuters] The choice of a military man with no telecoms background as South Africa's communications minister has baffled the industry and may complicate efforts to improve Internet and phone services in Africa's biggest economy.

But few in the industry have ever heard of him, raising questions about his ability to lower high communication costs, which are impeding growth and deterring foreign investment, and to oversee telecoms operator Telkom.

"I'm very surprised. It certainly wasn't what people within the industry were expecting," a Johannesburg-based telecoms industry source said. "It's interesting that they should appoint a rank outsider. It's a bit odd."

"He's a totally unknown quantity," the industry source said. "But he's a party man, so I guess he will take the party line."

Mystery general takes over South African telecoms

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