Saturn Communications moves closer to local telephony

Saturn Communications is about to take a further jump towards provison of local telephony. CEO Jack Matthews says he expects to sign an interconnection agrement with Telecom within the month. In addition, a deal to provide $30 million of telecommunications equipment with an unnamed supplier is due to be announced shortly.

Saturn Communications is about to take a further jump towards provison of local telephony.

CEO Jack Matthews says he expects to sign an interconnection agrement with Telecom within the month. In addition, a deal to provide $30 million of telecommunications equipment with an unnamed supplier is due to be announced shortly.

Matthews says Saturn is currently reviewing the execution draft of an interconnection contract with Telecom.

“We should be executing that any day now, I would expect,” he says.

The equipment deal is for switch and transmission vendors — contracts worth about $15 million each.

“We have selected those vendors, and they’ve been notified to that effect, we’re just not ready to say who they are yet.”

Computerworld understands Ericsson Communications is one of the successful tenderers. Saturn will become Telecom’s first competitor in local telephony market.

Earlier this year Matthews signalled that the company would spend $50 million this year in expanding its cable rollout and launching services such as telephony, high-speed data, Internet and video on demand. This compares with $22 million last year.

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