Africa: Telkom signs R225m 2010 Deal with Fifa


The deal for Telkom to provide fixed-line connectivity for the 2010 World Cup soccer tournament has finally received FIFA's public stamp of approval.

Yesterday, Telkom signed the deal to become a "National Supporter of the 2010 FIFA World Cup". The contract, worth R225 million, was signed at a ceremony in Nasrec, south of Johannesburg.

The agreement requires Telkom to provide FIFA with the fixed-line network infrastructure to support the broadcast of the 2010 event. The
R225 million will be put out by government as part of its estimated R5 billion technology budget for the World Cup.

"This encompasses the provisioning of fixed-line telecommunications-related products and services and, where applicable, the services of qualified personnel necessary for the planning, management, delivery, installation (and de-installation), operation, maintenance and satisfactory functioning of these products and services," says Telkom in a media statement.

In essence, Telkom will enable the interconnection of important event venues, including the 10 FIFA World Cup stadiums, broadcast compounds, media centres, the International Broadcast Centre and FIFA headquarter locations.

As a National Supporter of the 2010 FIFA World Cup, Telkom gains a package of advertising, promotional and marketing rights that are exercisable within the borders of SA. "Telkom chose this level of sponsorship because its dominant customer base is within the country,"
says Telkom acting CEO Reuben September.