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.
