2001-06-15

Siemens Information and Communication Group (I and C Group), has been awarded a turnkey supply contract, valued at US$ 221 million, for South Africa's third cellular operator, Cell C.

The contract will see Siemens as the full turnkey solutions provider of the dual band network infrastructure. The base contract for the main network and key options is valued at US $206 million over 18 months.

This will include the Switching, Base Stations, GPRS (General Packet Radio Services), Prepaid Platforms, and VAS (Value Added Services) equipment. In addition, Siemens have secured a support contract for all network elements. This contract also covers the installation and maintenance of all of Cell C's Business Communication equipment. Further options and operational support bring the overall contract value to US$ 221 million.

Pete da Silva, the Chief Operating Officer said: "Siemens has been preparing for the opportunity for over two years. The site acquisition program is well underway with site leases and contracts already in place. We are geared up for the countrywide network rollout, and will ensure a smooth implementation for the commercial launch, planned for mid December."

"Siemens is fully committed to Cell C and brings to the  partnership a combination of global experience, substantial in-country presence, with a deep knowledge of the people, politics and procedures needed to establish a cellular operator in the country," Da Silva said.

Da Silva affirmed that the award of the third cellular licence will deliver a range of significant benefits for South Africans, in line with the broader aims of improving access to communication services and increasing empowerment.  These include job creation, skills and knowledge transfer. "Up to 2000 new jobs will be created, directly and indirectly, by Siemens as a result of this project and we are committed to an aggressive programme of BEE subcontracting, with a significant percentage of materials for the project being procured locally.  Cell C will thus receive the benefits of black empowered vendors providing managerial, technical and financial
support."

Da Silva believes that Siemens, as the sole supplier for telecommunications equipment, and as a full turnkey partner, has all the key ingredients to succeed in the supply of the infrastructure solution for Cell C. "Securing the business was a significant step in affirming our position as the leading communications technology provider in Africa," he concluded.


See Third South African Cellular License Story