The government is reluctant to lose control of Telkom, partly because it is a useful way of delivering contracts to black business.Helping the cluster of small IT firms to grow will be difficult.
The average asset value of the five companies Sasol, Telkom, Barloworld, Imperial and Iscor is 36 billion rand ($5.2 billion); Transnet's asset base is 70 billion rand.
Not from Celtel, Kenya's second provider, which seems content to earn dividends in Safaricom's shadow, but from France Telecom, which recently bought 51% of Telkom, the state fixed-line monopoly, and Econet, a new Indian-owned network.Mr Joseph is not shy in weighing in on the perennial question of aid versus trade.
Final negotiations for the sale of 30% of Telkom, the state-owned telecommunications monopoly, are taking place with Telekom Malaysia and SBC Communications, an American company.
A recent report noted that Telkom, the monopoly land-line phone company (which was mostly privatised last year), charges its customers among the highest prices in the world.
The day after Ms Matsepe-Casaburri's announcement Telkom lost nearly 3 billion rand ($460m) or 6% of its value.
Cape Empowerment Trust (CET), a firm that has close links with the ruling African National Congress, has one subsidiary that supplies cables to Telkom, and another that is bidding for a government contract to introduce electronic payment systems for minibus taxis.
As for European firms, only Millicom of Luxembourg and Vodacom, a joint-venture between Vodafone of Britain and Telkom of South Africa, have much of a presence.
It's an ill wind... Unbound Africa calling Reprints Related items Mobile telecoms: Halfway thereMay 29th 2008 Mobile payments: Dial M for moneyJun 28th 2007Keeping the Safaricom name inherited from Telkom, the state fixed-line monopoly, Mr Joseph and a local advertising firm set out to create an "emotional connection" between Kenyans and Safaricom.
Many companies, such as Telkom, a monopoly telecoms supplier, Eskom, a state-run energy company, and the post office, link their annual price rises to inflation.
"Because of Telkom, not one of our South African clients is globally competitive," complains Mr Ord.
