T-Systems partners with Telkom for 2010

Johannesburg, 17 May 2007

IT services outsourcing group T-Systems SA is about to secure an anchor partnership with Telkom to provide technology solutions and infrastructure for the country's 2010 World Cup stadiums.

Market speculation holds that the deal could potentially be worth a few billion rands.

While neither company would confirm this, this morning, T-Systems has previously said it has already concluded a high-level heads of agreement to work with a local partner who has the necessary skills and access to infrastructure.

Meanwhile, Rose Sekese, the deputy director-general of the Department of Communications, last week revealed that Telkom has already been appointed to provide fixed-line connectivity between the 10 stadiums to be used during the tournament and the International Broadcast Centre (IBC).

While details of this contract have not yet been made public, Sekese said government would hand over the technology-kitted stadiums to FIFA in November 2009, adding that technology installations will begin 12 months before that deadline, following the completion of the brick-and-mortar work.

She says Telkom is to put 20G optic fibre pipes through two routes into the stadiums, connecting the venues with the IBC. The fixed-line operator is also expected to provide secondary pipes, which will ensure connectivity if the primary connection falls over.

The contract was not awarded through a tender process, as Telkom was the only operator with the experience and resources to provide the fixed-line infrastructure required, she explained. Sentech will provide satellite back-up for communications between the stadiums and the IBC.

Drawing on 2006

In a recent exclusive interview with ITWeb, T-Systems GM for business development and strategy Gert Schoonbee would not be drawn on details of the imminent deal, but said: "We are talking to potential partners, but the anchor partnership is in a fairly advanced stage of being finalised."

He explained that T-Systems SA's German parent, a subsidiary of Deutsche Telekom, provided 75% of the technology for the 2006 World Cup. The local group wants to leverage that knowledge to bring ICT solutions to SA, but with a strong emphasis on local relevance.

Schoonbee has long-claimed that T-Systems would be ideally positioned to provide ICT solutions and lessons to SA, based on the experience of Deutsche Telekom's involvement in last year's Soccer World Cup. While some of these solutions could be packaged and shipped directly from Germany, some would have to be adapted to local conditions and requirement, thus the company's strong emphasis on partnering with a local entity.

While the value of the potential Telkom-T-Systems contract is not known, it has been reported that SA will spend between R2 billion and R5 billion on ICT infrastructure for 2010.

Three competing cities - Cape Town, Johannesburg and Durban - have been short-listed to host the IBC. A final decision will be made by the Soccer World Cup Local Organising Committee soon.