Spescom strikes marketing deal with BT Group
October 10, 2003
By Margie Inggs
Durban - Spescom and the BT Group, the UK's largest telecommunications company, reached an agreement this week that will allow BT to release operational funds that Spescom will direct into its international marketing campaign for the NTelite product range.
The pact forms part of the multimillion, seven-year deal Spescom won with BT in 2001.
Britain's BT is going to reduce its contractual volume commitment for NTelite.
Developed by Spescom, NTelite is an intelligent electronic network terminator installed on customers' premises where a variety of services take over at the end of the telecommunications line.
By performing various functions remotely, the device can identify whether a fault is in the network or on site. The relationship between the companies will be reinforced through a marketing agreement through which they will identify parties and attract more business.
Tony Farah, executive chairman of Spescom, a multinational technology innovator with direct operations in the UK, US and South Africa, said the move was "extremely positive" for Spescom, as it would improve its cash flow and finances.
Spescom's $8 million offshore debt is seen as a weakness on its balance sheet. The released funds will also help sustain product development on other new-generation devices, enabling Spescom to realise the technology's full potential.
"The demands of the Next Generation Networks have confirmed the need for intelligent line termination," he said.
"Equipment at both ends of the network is changing quickly to keep pace with fast-changing technologies. The challenge facing network operators is how to deploy intelligent line termination in a way that will avoid the proliferation of devices on the customer's premises while providing fast and accurate testing for the entire spectrum of voice and data services."
While BT is Spescom's only NTelite customer, Farah said the company had been actively looking for other business and the new initiative would enable it to make a much bigger drive in that direction.
"NTelite will form a major part of Spescom's exhibit at the International Telecommunication Union Telecom World 2003 show being hosted in Geneva next week.
Spescom lost 1c to close at R1.23 in Johannesburg yesterday.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
