Vodacom and Altech have signed an agreement 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. The deal also makes provision for a further five years.
The value of the deal was not disclosed, but the terms were described as "highly satisfactory" for both parties.
The companies said in a joint statement issued late yesterday that the deal ends months of market speculation on Vodacom`s strategy going forward and its commitment to an ongoing relationship with Altech Autopage Cellular.
Vodacom CEO Alan Knott-Craig describes the agreement as a "win-win situation for both parties".
Altech CEO Craig Venter says he is gratified that Vodacom has confirmed its future strategy in SA and that Altech Autopage Cellular would play an important role within that strategy over the long-term.
He notes that it is of additional value to Vodacom that Altech Autopage Cellular has 144 distribution outlets countrywide.
Venter says now that Altech Autopage Cellular`s long-term future with Vodacom is secured, it intends to refocus its efforts on growing its Vodacom subscriber base.
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