| COMPANY NEWS
|
New partner to help Telkom expand
AT&T deal aims to bring seamless connectivity to Africa
April 17, 2009
By Thabiso Mochiko
Telkom had signed a memorandum of understanding with global telecoms group AT&T - which was bought by one-time Telkom investor SBC Communications - that would allow the two companies to tap into each other's networks and explore opportunities in areas such as technology data centres in sub-Saharan Africa, the JSE-listed entity said yesterday.
SBC Communications, with Telekom Malaysia, bought 30 percent of Telkom in 1997, but sold it in a controversial deal five years later.
Telkom said the latest agreement called for the establishment of seamless connectivity between the Telkom and AT&T networks so African firms could link more effectively to other global markets.
The contract is expected to be finalised in the next five months. Reuben September, the chief executive of Telkom Group, said that in the meanwhile the two companies would market each other's products.
AT&T will also provide services for international customers across Telkom's platform in sub-Saharan Africa.
September said the agreement would give impetus to Telkom's determination to expand geographically. "This (partnership) presents a formidable force in dealing with customer needs across the continent. Our strategy is to grow our footprint across the continent, not only through acquisitions but also through partnerships."
September said AT&T chose Telkom because of its presence in 35 countries, through the acquisition of Africa Online and MWeb Africa, its strong international connectivity and strong enterprise relationship.
Ronald Spears, the chief executive of AT&T Business Solutions, said that through Telkom AT&T would extend its world-class, internet-based network to sub-Saharan Africa and strengthen its ability to serve the needs of customers in the key South African market.
AT&T has similar deals in the Middle East and China.
Spears added that the partnership would not be tainted by Telkom's previous relationship with SBC Communications, which he described as "largely financial".
SBC Communications made billions of rands from Telkom through its controversial management agreement with the government. It later sold its shares to the Public Investment Corporation and the Elephant Consortium.
Through the AT&T agreement, Telkom aims to win foreign firms that are expanding in Africa. The agreement would also allow Telkom customers to access AT&T's global virtual private network.
|
|
|
Social bookmarking allows users to save and categorise a personal collection of bookmarks and share them with others. This is different to using your own browser bookmarks which are available using the menus within your web browser.
Use the links below to share this article on the social bookmarking site of your choice.
Read more about social bookmarking at Wikipedia - Social Bookmarking
|
|
|
Company News
News
Markets
Technology News
International
|
