SA's Telkom and global telecommunications group AT&T signed a memorandum of understanding on Thursday to allow both companies to explore opportunities on the African continent.

Telkom said in a statement CEO Reuben September and Ronald E Spears, president and CEO of AT&T Business Solutions, signed the agreement in Johannesburg.

The agreement called for both companies to establish seamless connectivity between the Telkom and AT&T networks, so that companies in sub-Saharan Africa could connect more effectively to other global markets, Telkom said.

It would also allow multinational companies seeking to establish or expand their operations in African countries to obtain Internet Protocol (IP) based and mobility services and applications more easily within the continent and around the world.

In terms of the MOU, the two companies would begin working towards definitive agreements that would directly connect the Telkom regional network and the AT&T global network.

The companies would also work towards delivering a wider geographic footprint of telecommunications services, both in Sub-Saharan Africa and other global points.

The agreement would furthermore enhance mobile service capabilities for corporate customers in sub-Saharan Africa as well as extend global VPN (Virtual Private Network) services to support the state-of-the-art network requirements of customers either headquartered in or seeking to expand sites in sub-Saharan Africa, the statement said.

Together the companies would explore other potential opportunities in areas such as telepresence, hosting and professional services, and expand the existing global wholesale voice services relationship between Telkom and AT&T.

September welcomed the agreement, saying it "further entrenches the solid progress we have made in executing our strategic imperatives".

"This agreement will definitely contribute to our objective of expanding our leadership position beyond the borders of our country."

He added that the agreement would give impetus to Telkom's determination to expand geographically.

Spears said the opportunity was a milestone for AT&T.

"By working with Telkom we will be able to extend AT&T's world-class IP based services to sub-Saharan Africa as well as strengthen our ability to serve the needs of customers in the key South African market.

He added that advanced telecommunications networking was a powerful driver of economic growth, prosperity and stability, and the agreement would help progress the availability of and investment in telecommunications services in African countries.

Telkom said its expansion into sub-Saharan Africa was, until recently, restricted by the Vodacom shareholders' agreement which had now been lifted by the sale of 15 percent of Telkom's stake in Vodacom to the United Kingdom's Vodafone Group and unbundling of the remaining 35 percent to Telkom shareholders.

September said Telkom was now free to compete and the group would, in co-operation with AT&T, also explore opportunities for collaboration in the area of mobile services in Nigeria and other sub-Saharan African countries.

"For example, roaming agreements between our respective mobile carriers and centralised transaction management for corporate customers will be explored," September said.

Sapa