Johannesburg, 08 Aug 2007
The deal for Telkom to provide fixed-line connectivity for the 2010 World Cup soccer tournament has finally received FIFA's public stamp of approval.
Yesterday, Telkom signed the deal to become a "National Supporter of the 2010 FIFA World Cup". The contract, worth R225 million, was signed at a ceremony in Nasrec, south of Johannesburg.
The agreement requires Telkom to provide FIFA with the fixed-line network infrastructure to support the broadcast of the 2010 event. The R225 million will be put out by government as part of its estimated R5 billion technology budget for the World Cup.
"This encompasses the provisioning of fixed-line telecommunications-related products and services and, where applicable, the services of qualified personnel necessary for the planning, management, delivery, installation (and de-installation), operation, maintenance and satisfactory functioning of these products and services," says Telkom in a media statement.
In essence, Telkom will enable the interconnection of important event venues, including the 10 FIFA World Cup stadiums, broadcast compounds, media centres, the International Broadcast Centre and FIFA headquarter locations.
As a National Supporter of the 2010 FIFA World Cup, Telkom gains a package of advertising, promotional and marketing rights that are exercisable within the borders of SA. "Telkom chose this level of sponsorship because its dominant customer base is within the country," says Telkom acting CEO Reuben September.
Strong legacy
September says Telkom's new-generation network infrastructure will also make it possible for Telkom to become globally competitive within the ICT sector and will prove to be a strong legacy long after the FIFA World Cup is over.
Department of Communications deputy director-general Rosey Sekese has previously noted that Telkom would begin laying out cables into the 10 stadiums near the end of 2008. The work is to be completed within 12 months, with the stadiums handed to FIFA in 2009.
Sekese said the final technology budget will be influenced by FIFA's technology choices, the cost of equipment, and inflation rates as they would apply at the time of purchase.
Market speculation is that the fixed-line operator will partner with IT outsourcing group T-Systems to provide infrastructure and technology solutions for the games.
While both companies have refused to confirm this, T-Systems previously said it concluded a high-level heads of agreement to work with a local partner who has the necessary skills and access to the 2010 infrastructure project.
The Department of Communications has previously said other telecoms providers, including Neotel, would also have roles to play in the 2010 games. However, their potential roles have not yet been clarified.
Related story:
SA budgets for 2010 IT success
Share