Altech KDN strengthens network

BUSINESS

|
Image: By BiztechAfrica
Altech KDN strengthens network

By Semaj Itosno, Nairobi, Kenya 

Altech KDN has expressed optimism for its business performance due to enhanced infrastructure. With presence in 21 countries, the group posted revenue increase of 6.8%.

According to Shahab Meshki, CEO of Altech KDN, the company has managed to improve its network uptime, making it more secure and reliable for the provision of broadband services.

“Our network stability recently improved from 83% to its current 98% – targeting industry standards of up to 99.9%. And because of our regional resource deployment and collaboration, this has strengthened our sales and technical expertise,” said Meshki.

He said the company’s overall strategy had changed and the focus of the business was to now offer customised services for the different industry sectors of the economy. This was illustrated by the steady uptake of data centre services with the first floor of the new Altech Sameer East Africa Data Centre having been sold out and customers requesting additional capacity for their data.

Craig Venter, speaking last week during the release of the group’s financial results for the six month period ended 31 August 2012 said the Telecommunications and Wireless Communications Division, which consists of Altech Autopage Cellular (including Altech Technology Concepts) and Altech Netstar, performed as predicted. 

Altech Autopage Cellular’s operating profit increased by 3.7% while revenue increased only marginally due to the contraction of Global System for Mobile communications (GSM) airtime revenue and slower than expected Internet Service Provider (ISP) revenue growth. This has however, been mitigated by increased prepaid and Value Added Services (VAS) revenues. 

Venter said the GSM data remained strong with 26% subscriber growth on the previous period due to aggressive data pricing propositions in the market and GSM customer churn has been reduced to single digits in the reporting period due to tighter credit management, improved customer service and retention, and a focus on consumer growth in higher value channels: 

“Our continued focus on expense management in the business will realise efficiencies and cost savings in the second half of the year to mitigate the pressure on gross margin. Coupled to this, the successful integration of Altech Technology Concepts into Altech Autopage Cellular will allow for further converged product launches across distribution channels to consumer and business customers in the second half of the year.”

The Converged Services and Connectivity Division, which consists of Altech Alcom Radio Distributors, Altech Fleetcall, Altech Alcom Matomo, and the East Africa operations presented mixed results.

Although there were challenges in network operations in East Africa, Venter highlighted some of the positive improvements with regard to network stability and data centre performance over the period. “This has had a material impact on key customer retention and acquisition in Kenya and across the region,” he said. 

The Multi-media and Electronics Division, which consists of Altech Multimedia and Arrow Altech Distribution, performed as expected for the period, with Arrow Altech Distribution maintaining its 30% market share in a very competitive environment. 

Venter said the operation’s strategy to expand into providing mobile applications has resulted in the award of contracts that were currently being executed as the initiative were expected to contribute substantially going forward with further growth expected from its existing product offering.  

“On the whole, our operations in South Africa and some international operations are performing well despite the continuing adverse economic conditions. Of concern are our operations in East Africa and I am confident that we will address these challenges with the major focus going forward being growth of the revenue line while reducing customer churn and managing expenditure,” said Venter.



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE BUSINESS NEWS

Safaricom tops best managed company list

Safaricom has been named the ‘Best Managed Company in Kenya’ by leading market analysts. Read More

Equity Group appoints Bhartesh Shah as COO

Equity Group Holdings has announced the appointment of Mr. Bhartesh Shah to the Chief Operations Officer (COO) position. Read More

The nine top trends in CEM today

Customer experience management that genuinely enhances customer ‘stickiness’ depends on new strategies and now mindsets, says Frost & Sullivan. Read More

MTN, former ATCON chief disagree over naira devaluation

MTN Nigeria and a former president, Association of Telecoms Companies of Nigeria (ATCON) have disagreed over further devaluation of the naira. Read More

MTN Business launches Supplier Development Programme in Mpumalanga

MTN Business has reaffirmed its commitment to develop small and medium-sized enterprises (SMEs) within Nelspruit by extending its Supplier Development Programme (SDP) and Accelerator Programme (AP), the company’s enterprise development initiatives, to the Mpumalanga Province of South Africa.  Read More

VMware appoints Senior Vice President and GM of EMEA

VMware, a global leader in cloud infrastructure and business mobility, today announced the appointment of Jean-Pierre Brulard as Senior Vice President and General Manager of EMEA.  Read More

InfoGraphics chief urges investment in tech start-ups

The Managing Director of InfoGraphics Nigeria, Chinenye Mba-Uzoukwu, has urged wealthy Nigerians to invest in tech start-ups. Read More

Convergence Partners acquires stake in Nigerian Fintech firm

Convergence Partners has announced an investment of $20m for a strategic, minority stake in Venture Garden Nigeria. Read More

MTN Business augments its management team further with key strategic appointment

MTN Business SA has appointed an industry veteran, Mariana Kruger, as General Manager of Private Sector.  Read More

SA Competition Tribunal approves Telkom-BCX merger

Business Connexion Group Limited has announced that the Competition Tribunal of South Africa has approved the proposed merger between Business Connexion Group Limited ("BCX") and Telkom SA SOC Limited ("Telkom") with the imposition of conditions. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

Young innovators shine during pitch sessionsYoung innovators shine during pitch sessions

Botswana saw an array of upcoming tech wizards selling their ideas during the Vendors’ Day pitch sessions this week.

IN DEPTH

High tech homes: Just press playHigh tech homes: Just press play

High tech, digital homes where everything is automated and connected aren’t the stuff of science fiction any longer, says BNC Technology.