Lesley Stones
17 April 2009
Johannesburg — TELKOM has found a formidable partner to support its plans to offer more services across a broader sweep of Africa in a deal to collaborate with New York-listed AT&T.
Although neither party is being specific about its future offerings, they say the alliance will give multinational companies the same range and quality of voice and data services in Sub-Saharan Africa as they enjoy in first-world countries.
"I don't consider this nebulous," said Ronald Spears, the CEO of AT&T Business Solutions.
"The intention over the next several months is to get very specific around exactly how this relationship is going to be presented to the market place."
Telkom operates in 35 countries through its investments in African internet service providers. Its regional network will connect to AT&T's global network to give companies in Africa more effective international connectivity. They will collaborate on mobile telephony, virtual private networks dedicated to companies and teleconferencing and data and software hosting.
Building more telecoms infrastructure in the region would largely be Telkom's role with AT&T supplying the international connectivity as well as products and services. The alliance would help fulfil Telkom's aim of becoming a fully fledged Pan-African operator, said CEO Reuben September.
"We have to transform into explorers so we can discover and cultivate new frontiers of growth.
"It's about bringing networks and services together. AT&T operates and owns a global network and is known for its innovative, quality products and outstanding customer service." Their partnership would generate new revenue opportunities and new chances to market its products and services, he said.
Spears said working with Telkom would let AT&T extend its services into Sub-Saharan Africa, which was vital as an increasing number of clients had significant communications needs in Africa, and more were coming in. The deal would benefit clients and economies with better connectivity and services at lower prices.
AT&T grew out of SBC, which once partially owned Telkom. Ironically, that relationship was blamed for stifling the development of SA's telecoms sector as it came with a guaranteed monopoly for Telkom that crushed competition.
"Now we are coming together in a different time in a different world for different reasons," said Spears.
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