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Telkom wins ruling on network upgrade

Mar 18 2013 20:12 Reuters

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Johannesburg - South African fixed-line operator Telkom said on Monday it had won a court dispute with an affiliate of China's ZTE Corp that had put on hold its planned network overhaul.

Telkom last year was forced to suspend a long-awaited upgrade to higher-speed broadband after infrastructure provider ZTE Mzansi won a court interdict to halt the project.

ZTE Mzansi, a joint venture between China's ZTE Corp and local black-owned companies, took Telkom to court after being disqualified from bidding for the project.

Telkom said in a statement the Supreme Court of Appeal had set aside the earlier interdict, meaning it could go ahead with the network upgrade.

“We had no doubt that Telkom’s procurement policy and procedures would not be found wanting,” said CEO Nombulelo Moholi.

“Telkom is pleased that the roll-out of the higher-speed broadband project has overcome a potential obstacle and can now continue unabated.”

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