Bloomberg News

Telkom South Africa Says Huawei Completing Mobile-System Work

December 12, 2011

Dec. 12 (Bloomberg) -- Telkom South Africa Ltd. said Huawei Technologies Co. is completing work for its mobile-phone unit, denying a Business Day report that Africa’s largest provider of fixed-line services wants to replace the supplier.

Huawei Technologies has built 1,560 base stations to date for Telkom’s new 8ta mobile division and is busy setting up others according to the original agreement, Pynee Chetty, a spokesman at Pretoria-based Telkom, said in an e-mailed response to questions.

Business Day reported today, citing an unidentified person in the industry, that Telkom is planning to issue a new tender to build a network for 8ta after Shenzhen, China-based Huawei Technologies failed to meet deadlines.

“This is certainly not the case,” as Telkom had been planning to seek a second equipment vendor to expand the network only after seeing how demand develops and analyzing how the technologies can be integrated, Chetty said.

“The formal sourcing process has been started, with the generation of requisite documentation and specifications having been completed” for the additional supplier, Chetty said.

Telkom is withholding 800 million rand ($97 million) in payments due to Huawei Technologies, Johannesburg-based Business Day reported. Telkom pays its contractors only after assets have been handed over, Chetty said.

--Editors: Tom Lavell, David Risser

To contact the reporter on this story: Sikonathi Mantshantsha in Johannesburg at

To contact the editor responsible for this story: Kenneth Wong at

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