The government is considering an amendment to the Electronic Communications Act to allow for the issuing of telecommunications licences to state-owned enterprises such as the proposed broadband Infraco company. The proposal will be submitted by the communications department to the cabinet in the next few weeks in an attempt to unlock the legal conundrums involved in the bid by the public enterprise department aimed at setting up Infraco as soon as possible.

 Infraco's role will be to provide broadband access at affordable prices, thereby lowering the cost of telecommunications in the country. The move will be in line with the call made by President Thabo Mbeki for the lowering of telecommunications costs as part of the government's plan to lower the cost of doing business and to attract direct foreign investment.