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Why @lantic signed R22m Telkom deal

Johannesburg, 06 Aug 2003

provider @lantic says it decided to sign a R22 million deal with Telkom because the ongoing saga over the second national operator (SNO) licence means that the incumbent will remain the dominant player for some time to come.

"We haven`t closed the door on alternatives or other possibilities. We may look at the SNO in the future, but I think it will be quite a while before it will be competitive enough to provide the service we are getting at present," says Neels Fourie, @lantic MD.

"We have signed a three-year deal with Telkom, but three years passes very quickly and we will be prepared to reassess our alternatives when this agreement expires."

He says the company looked at the various alternatives - although there were not too many in SA - and eventually decided that for the sake of long-term stability, it needed to partner with a large player that has a secure and stable .

"We have been dealing with the incumbent for some time and have an open understanding with them. The fact that Telkom provides national Internet access services through its South African Internet eXchange (SAIX) service also helps," says Fourie.

He says using SAIX means that @lantic can offer a single access number to clients, which they can use wherever they may be in the country.

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