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Convergence journey no quick fix

Durban, SA, 02 Jun 2005

The journey to a new liberated ICT convergence solution is not a quick fix, but a long-term approach leading to a destination rich with rewards.

This was the gist of a message from Jay Reddy, managing director of Dimension Data in KwaZulu-Natal, when he addressed corporate delegates at a presentation entitled "Liberation of Information, a New Era".

Giving the "Ultimate Guided Tour" on World Telecommunications Day, Reddy shared his knowledge of a converged communications infrastructure in the context of SA`s newly liberalised ICT industry.

"Deregulation has occurred. The passing of the Convergence Bill is imminent. Dimension Data`s strategy is to optimise client experience through value added services such as sourcing the most appropriate solutions using our skills to negotiate the most cost-effective solutions."

Dimension Data, he said, does not intend to become a carrier, but to provide value and manage telecommunications on behalf of customers in an outsourced environment.

"For example, an aggregator such as Dimension Data will source 3G, satellite, DSL and Diginet with a hybrid solution.

"We believe that going into the future, converged communication services can be sourced from cost-effective connectivity strategies improving productivity and focusing on important functionalities at lower costs in an enhanced security environment.

"We see our role as providing a service where we will remain ahead of user requirements, instead of reacting to user demands."

Reddy pointed out that the benefits of changing to a converged environment are that customers will look at convergence as a journey with a long-term approach rather than a quick fix.

"The benefit of this approach is partnering with an aggregator with the results being lower costs for new deployments, enhanced security and the ability to meet rising user expectations.

"Dimension Data`s vision is to help customers develop these strategies in a long-term phased in, multi-year approach," Reddy said.

His presentation was followed by a discussion by Steve Herridge, Durban branch manager of Internet Solutions, who said the current telco monopoly has been "an inhibitor to our telecommunications freedom with costs playing a big role".

On the bright side, Herridge noted that we can expect to see a reduction in margins as VAN competition increases and VOIP will pressurise Telkom`s voice margins particularly in the call centre and international sectors, which will filter down to national level as VOIP matures.

Further benefits will become apparent as the three cellular operators introduce data services.

"SA is ranked as the 26th most connected country in the world and Telkom`s infrastructure is ranked fifth. However, despite this, cost does remain an inhibitor to growth of our economy and our ability to provide cutting-edge services as a country," Herridge said.

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Dimension Data

Dimension Data plc (LSE:DDT), a specialist IT services and solution provider, helps clients plan, build and support their IT infrastructures. Dimension Data applies its expertise in networking, security, operating environments, storage and contact centre technologies and its unique skills in consulting, integration and managed services to create customised client solutions.

Editorial contacts

Jacques-Philip Hansen
Text 100 Public Relations
(011) 803 2800
jacques-philip.hansen@text100.co.za
Arlene Brown
Dimension Data South Africa
(031) 204 8463
arlene.brown@za.didata.com