"The license will be issued by the end of November at the outside. We are hoping to get it done before then," Hlapolosa said.

Hlapolosa added that ICASA was negotiating license terms with shareholders and needed to make sure the SNO, whose launch has been delayed due to investor disputes, has a level playing field with Telkom. Shareholders claim they are simply waiting for the license and will launch once it is issued.

Mike van den Bergh, CEO of Gateway Communications – one of the shareholders in the SNO – says he expects the SNO to launch some services by the end of this year and to be fully functional early next year.

"Realistically, you are going to see full services from the SNO in the first half (of next year)," he said.

The government has said high telecommunications tariffs, caused partially by Telkom's monopoly, inflate the cost of dong business and deter foreign investment. Consumer groups and government ministers also blame high tariffs for impeding the roll-out of communications to rural and low-income communities.

Source: Reuters - WDR/Intelecon Regulatory News