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Spescom grabs R10m Neotel contract

Kimberly Guest
By Kimberly Guest, ITWeb contributor
Johannesburg, 20 Jun 2007

Spescom Telecommunications has secured a three-year contract to supply and service next-generation synchronous digital hierarchy (NGSDH) transmission equipment to second national operator, Neotel.

While the parties are not disclosing the value of the deal, it is understood to be well over R10 million. Spescom Telecommunications CEO Thomas Makore adds the contract volumes will be determined by the growth of the Neotel network.

In recent months, Neotel has awarded infrastructure contracts to Tellumat Radio Communications for microwave radio links to power its entire network; Nokia Siemens Networks for the IP core, IP network management system and metro dense wavelength division multiplexing components of the Neotel network; Motorola for the radio frequency planning for the CDMA and WiMax network; and Dimension Data and Cisco to provide the metro Ethernet portion.

Juniper and Huawei have been selected as preferred suppliers for routers and core network infrastructure respectively.

Running rings

The equipment supplied by Spescom forms part of the transmission rings Neotel is rolling out in metropolitan areas in order to supply a large range of services, says Makore.

"The NGSDH equipment will connect to the Infraco core transmission network and to the metropolitan transmission network. This in turn will connect to corporate customers," he explains.

Spescom will provide the technology through its international partner, ECI Telecom. The Nasdaq-listed company is sending people out to SA for the initial phase of the contract to facilitate skills transfer to Spescom staff, says Makore.

Under pressure from Neotel to fast-track implementation, Spescom has already installed the first batch of the contract in Cape Town.

Local loop

Neotel has yet to announce the contractors for its local loop infrastructure. The company is believed to be considering proposals for both its wireline and wireless tenders. Both contracts are believed to be considerable.

Makore hopes Spescom Telecommunications, having secured the contract for the metropolitan transport layer, will find itself among those selected for the local loop contracts.

"We are going for these contracts. We had a rough few years while the market was depressed but we used that period for training and knowledge growth. We believe this will stand us in good stead to deliver on current and future contracts," he concludes.

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