Under the terms of the deal Space Television will wholesale a range of NetComm products for a minimum of $1.16 million in the African region, for the first in year, in a three year deal.
The three year deal is for the full range of NetComm product including ADSL2+ devices, dial up modems, integrated access devices, networking products, wireless and DSLAMS.
David Stewart, managing director of NetComm Space Television was established in 1975 and is one of the oldest technology companies in South Africa.
“The Space Television distributor agreement covers the full range of NetComm products for distribution throughout the entire African continent,” he said. “The African continent is experiencing rapid growth throughout both the telecommunications and networking sectors.”
The deal took around three months of negotiations before it was signed and sealed by both parties, Stewart told CRN.
Space Television has a foundation in distribution as well as a retail chain, both of which will leverage the sale of NetComm’s technologies to meet the agreed contract for $1.16 million of revenues per year. Wayne Voigt, director of Space Television said.
“We saw the NetComm agreement as an opportunity to expand our core product range. We were looking for a vendor partner who would offer us a high level of support as well as a wide breadth of product,” he said.
According to Voight the African market is growing and the products NetComm offered extended an opportunity outside of our current core range.
“We anticipate that the $1.16 million per annum target is a realistic and achievable growth for our company,” said Voigt.
According to Stewart this was the first to sign of multiple opportunities that we have identified in this region after a number of trade expeditions, and the recent Austrade delegation to Gitex.
We would like to also acknowledge the able assistance of Austrade and NSW Department of State and Regional Development in helping NetComm expand its markets,” he said.
NetComm goes out to Africa in deal worth over $1M
By Lilia Guan on Dec 18, 2007 3:28PM