October 1991 – The Department of Posts and Telecommunications commissions Coopers & Lybrand provided policy options and restructured South Africa’s telecommunications industry.
Pay-TV service M-Net and the UK’s Cable & Wireless proposed a joint venture with Telkom and provided a GSM cellular service in South Africa. Telkom eventually rejected the proposal (it believed that only 18 000 South Africans will want or need cellphones).
July 1992 – M-Net and Cable & Wireless launch ‘Project Anchor’, a business planned for a new cellular network, estimated that after 10 years, the new licensee would need just 263 staff and capital expenditure of R1.3 million.
August 1992 – Coopers & Lybrand issued its report, recommended that two digital cellular licenses be issued with Telkom holding a major share in one, and that airtime resellers act as intermediaries between the networks and end-users.
November 1992 – M-Net and Cable & Wireless welcome the introduction of a second cellular license and began working in earnest on a bid.
February 1993 – The Minister of Posts and Telecommunications announced that two licenses will be issued and that Telkom’s share in one license will be restricted to 50%.
May 1993 – The state-owned Vodacom is created. Secured in the knowledge that it will get one of the two licenses, Telkom and its joint venture partners began building their network.
June 1993 – Applications for licenses close. MTN has already been formed with M-Net and Cable & Wireless each holding 30%, black business federation Fabcos having 5% and parastatal Transnet 10%, and 25% going to an investment company whose objective it is to spread ownership to the black business community.
September 1993 – Two licenses are awarded, for R100 million each including VAT but excluded fees equivalent to 5% of net operating income per year.
January 1994 – MTN started building its network after beginning with a R15 million pilot test system in Cape Town.
28 February 1994 – MTN launched itself at a lavish function held at the Johannesburg Planetarium. Its showpieces included a cellular payphone, of which it quickly installed 7 500, as per its license obligations, in under-serviced township and rural areas. Guests excitedly began making calls using 15 cellphones available.
1 March 1994 – Trials began with both networks allowed and circulated 2 000 cellphones apiece.
1 April 1994 – Trials are extended to an additional 20 000 users.
27 April 1994 – South Africans went to the polls in the country’s first democratic elections.
1 June 1994 – Both networks are formally switched on.
November 1994 – M-Cell officially incorporated with a substantially empowered shareholding, its only asset being 100% ownership of MTN.
