The conclusion of the agreement ends months of market speculation concerning the strategy of Vodacom going forward and, in particular, its commitment to an on-going relationship with Altech Autopage Cellular.
CEO of Vodacom, Alan Knott-Craig, has welcomed the signing of the agreement as a win-win situation for both parties: "An agreement of this magnitude, for both parties, creates an exceptionally powerful force within the cellular industry in South Africa."
He says that while he could not go into the exact financial terms of the agreement, he could say that both Vodacom and Altech viewed them as highly satisfactory and that the agreement had firmed Vodacom's overall commitment to its channel distribution partner.
"For this reason the agreement duration has been set for a minimum of five years, with an additional five year option. This shows that we are extremely happy with the service, professionalism and overall outstanding performance of our partner."
The CEO of Altech, Craig Venter, says he is pleased that Vodacom had placed its full confidence behind Altech Autopage Cellula: "During the past eight years Altech Autopage Cellular has valued its relationship with Vodacom and has proven its status as a reliable and professional partner. Of additional value to Vodacom are the 144 distribution outlets which Altech Autopage Cellular has countrywide."
He says now that Altech Autopage Cellular's long-term future with Vodacom has been secured, it intends to refocus its efforts to grow its Vodacom subscriber base: "This is good news for both corporate and consumer customers."
