Altech inks deal for cheaper African broadband service
April 24, 2007
By Thabiso Mochiko
Johannesburg - Allied Technologies (Altech) had agreed to distribute the broadband services of US-based CityNet Wireless in southern Africa, the telecommunications company said yesterday.
The move would enable JSE-listed Altech to offer cheaper internet services to poor markets in sub-Saharan countries.
CityNet Wireless's optimised high-speed technology has reduced the traditional cost of using the internet in 35 US cities.
The company would not say how much the partnership was worth or how long it would last because it was in a closed period. It is scheduled today to report its financial results for the year to February.
Altech's chief technology officer, Steven Sidley, said the deal would enable the company to build wireless internet networks in countries that did not have networks or in which they were obsolete.
He would not name the countries that Altech had identified, but said a due diligence had been conducted on regulations and tariffs. Assessment of potential partners in the selected countries was being conducted.
"Access to the internet through this technology is inexpensive and efficient compared with downloading the internet from cellphones using other technologies or fixed-line networks," he said.
The government plans to increase broadband access through initiatives such as using state-owned signal distributor Sentech's infrastructure to offer services. The plan is to offer broadband at an affordable rate to bridge the digital divide.
Chief executive Craig Venter said: "Broadband network delivery systems are now at the centre of all global digital communications."
Sidley said Altech had tendered for the multimillion-rand broadband network project planned by the City of Johannesburg. It might use CityNet Wireless technology if it won. This year it signed a partnership with Samsung to test WiMax, a wireless broadband technology over long distances.
Last week Altech sold a 30 percent stake in its subsidiary, Altech Alcom Matomo, to Penuell Maduna's consortium, Platina Venture, for an undisclosed amount.
Altech shares yesterday gained 1.41 percent to R68.95. The mobile telecommunications sector rose 0.57 percent.
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