Vodacom and Altech today confirmed that a long-term and far-reaching agreement has been signed whereby Altech`s wholly-owned subsidiary, Altech Autopage Cellular, will be a preferred independent service provider to the Vodacom network for at least the next five years - with an option of a further five years - at "highly satisfactory" terms for both parties.
Vodacom, a Pan African cellular communications group, is SA`s market leader in the provision of cellular services and provides a world-class GSM service to millions of customers throughout SA, Tanzania, Lesotho, Mozambique and the Democratic Republic of the Congo.
Altech is SA`s leading telecommunications, multimedia and IT (TMT) convergence group.
The conclusion of the agreement ends months of market speculation concerning the strategy of Vodacom going forward and, in particular, its commitment to an ongoing relationship with Altech Autopage Cellular.
According to the agreement, Vodacom has now fully committed itself to its long-time distribution partner, Altech Autopage Cellular, SA`s largest independent service provider.
CEO of Vodacom, Alan Knott-Craig, has welcomed the signing of the agreement as a win-win situation for both parties. "An agreement of this magnitude, for both parties, creates an exceptionally powerful force within the cellular industry in SA."
He said that while he could not go into the exact financial terms of the agreement, he could say that both Vodacom and Altech viewed them as highly satisfactory and that the agreement had firmed Vodacom`s overall commitment to its channel distribution partner.
He said the confidence that Vodacom had in Altech Autopage Cellular was clear. "For this reason the agreement duration has been set for a minimum of five years, with an additional five year option. This shows that we are extremely happy with the service, professionalism and overall outstanding performance of our partner," he said.
CEO of Altech, Craig Venter, said he was pleased that Vodacom had placed its full confidence behind Altech Autopage Cellular. "Vodacom, under the helm of Alan Knott-Craig, has already changed the landscape of mobile communications on the African continent. The signing of this agreement is yet another milestone for Vodacom, as it is for Altech Autopage Cellular."
Venter said he was gratified that Vodacom had confirmed its future strategy in SA and that Altech Autopage Cellular would be playing its own important role within that strategy over the long-term.
"During the past eight years Altech Autopage Cellular has valued its relationship with Vodacom and has proven its status as a reliable and professional partner. Of additional value to Vodacom are the 144 distribution outlets which Altech Autopage Cellular has countrywide," said Venter.
He said Altech Autopage Cellular was proud that it had one of the lowest churn rates in the sector which demonstrated strong customer loyalty to the Altech Autopage Cellular brand and operation. "This is a clear indication that we are close to our business and I believe that Vodacom, by signing this agreement and solidifying our partnership, is well aware of those important factors."
He said that now that Altech Autopage Cellular`s long-term future with Vodacom was secured, it intended to refocus its efforts to grow its Vodacom subscriber base. "This is good news for both corporate and consumer customers."
Share
Editorial contacts