ICASA said in a statement it had finalised the licensing process for the Second National Operator (SNO) and would issue a Public Switched Telecommunications Service (PSTS) on Friday.

Telkom is South Africa's only fixed-line phone operator and consumer groups say it abuses its dominant position to rip off customers.

The government, including President Thabo Mbeki, has urged Telkom to cut tariffs, which it argues inflates the cost of doing business and deters foreign investors, as well as impeding the roll-out of communications to poor communities.

Telkom posted a 35 per cent jump in first-half headline earnings last month thanks to a leaner wage bill following hefty job cuts and bumper dividends from its fast-growing mobile phone unit Vodacom.

But analysts warn that the dismantling of its monopoly will put a brake on growth in coming years.

The launch of the SNO has been delayed several times due to infighting among shareholders, and industry commentators have accused the government of dragging its feet.

ICASA's head of telecoms, Peter Hlapolosa, told Reuters in September the SNO would get its licence by the end of November and shareholders have said they expect to launch services early next year.

The SNO is owned by a consortium that includes India's industrial Tata Group and Transtel, the telecoms arm of South African state utility Transnet.

- Nampa-Reuters

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