AT&T, South Africa's Telkom relationship falls short of expectations

Telkom, South Africa's biggest wireline service provider, wants to reexamine the partnership it established with AT&T (NYSE: T) last April to enhance its business services revenue base.

At first glance, Telkom's partnership with AT&T held the promise of bringing in new business from international companies that were expanding their presence in South Africa. However, it has yet to produce the results Jeffrey Hedberg, Telkom's acting CEO, would like to see.

"The partnership (with AT&T) has not progressed to an extent we would like to date," Hedberg said in a Reuters article. Hedberg attributed the poor performance of the venture to pricing and post-sales support.  

Last April, Telkom signed a memorandum of understanding that would allow AT&T's African-based business customers to leverage Telkom's South African network. Under the terms of the agreement, Telkom's network would be connected to AT&T's global network, which in turn would enable it to sign on AT&T customer's business.

For more:
- Reuters has this story

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