BT seeks BEE partner

ADSL South Africa (Broadband South Africa), 26 February 2007

UK giant, British Telecommunications (BT), is searching for a black economic empowerment (BEE) partner in South Africa.

Word is out that BT ‘plans to finalise a joint venture with a local black economic empowerment (BEE) company before the end of the year as it positions itself to aggressively win corporate clients’ (UK telecoms giant on the prowl for a BEE partner, Movhiko, Business Day, 23 February 2007). In other words, it’s guaranteed that at least one BEE company will be smiling this year.

Negotiations for a BEE “partnership started two years ago, but had to be suspended as South Africa started formulating and finalising the information and communications technology transformation charter and the Electronics Communications Act” (UK telecoms giant on the prowl for a BEE partner, Movhiko, Business Day, 23 February 2007). This is according to BT’s General Manager for the Middle East and Africa, Brian Armstrong. He added: “There [was] too much uncertainty.” In other words, BT’s search for a BEE partner in South Africa is long overdue mainly because BT waited for legislation to be finalised.

Armstrong also made it clear that ‘the company was considering several options on how the joint venture would be structured, but it was likely that it would be majority owned by BT and would operate as a subsidiary of the UK-based group’ (UK telecoms giant on the prowl for a BEE partner, Movhiko, Business Day, 23 February 2007).

Will this be the first time BT does business in South Africa?

No, it will not be BT’s first time. BT has already been doing business in South Africa for over 15 years with telecoms operators such as Telkom.

‘Because of regulatory constraints, BT services were limited, but with the deregulation of the telecoms market, it has now evolved as a value-added network services provider offering products such as voice over internet protocol and least cost routing (LCR)’ (UK telecoms giant on the prowl for a BEE partner, Movhiko, Business Day, 23 February 2007).

What are the benefits of LCR or least cost routing?

Telephone cost savings.

ADSL South Africa(Broadband South Africa) welcomes BT’s drive to expand its services in South Africa. It will surely benefit South Africa as a whole to see lower telephone rates for one.