Altech KDN strengthens network
BUSINESSBy BiztechAfrica - Oct. 5, 2012, 6:02 a.m.
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.
MORE BUSINESS NEWS
Further African expansion for PhoenixPhoenix Distribution, a leading broad-based distributor on the African continent, has expanded its office in Nairobi, Kenya, in a move to better serve its partners in East Africa. Read More
Garmin seeks business partners in West AfricaGarmin is hosting a trade delegation in Accra, Ghana from the 12th to 16th May 2014. Read More
Orange Telkom not closing Kenya business: GhosseinSpeculation that Orange Telkom Kenya would be closing its Kenyan operations has been put to rest. Read More
Dimension Data enters Ghana’s IT marketDimension Data, a South Africa-based ICT solutions and services provider, has announced its entry into the Ghanaian ICT market. Read More
Glo rewards business partnersGlobacom has showered 53 high-end vehicles and other prizes on its trade partners responsible for distributing Globacom’s products and services across Nigeria. Read More
Worldwide PC shipments declineWorldwide PC shipments totalled 76.6 million units in the first quarter of 2014, a 1.7 per cent decline from the first quarter of 2013, according to preliminary results by Gartner Read More
Axis Solutions becomes first VMware Premier Partner in the WECA RegionAxis Solutions, a Pan-African ICT solutions provider headquartered in Harare Zimbabwe, is the first VMware partner to become a Premier Partner within the WECA region. Read More
Nigeria to spur Oracle's African driveOracle Corporation has assured that Nigeria will be the centerpiece of its developmental drive in Africa. Read More
Pivot East nurtures promising startupsPivot East, an innovative mobile web competition geared towards nurturing the growing ICT talent in East Africa, is providing an ideal platform to grow mobile web startups. Read More
Phoenix Distribution unveils new, interactive websitePhoenix Distribution, currently the leading value added software and CES distributor across the African continent, has redesigned its website, making it easier to use for clients and partners alike. Read More
FEATURED STORYKenyan shift to Green Economy would generate USD 45bn by 2030
Kenya’s transition to a green economy could produce major economic benefits equivalent to an estimated USD 45 billion by 2030, a new study shows.
BEST READ NEWS
IN DEPTHE-waste threatens Ghana’s beaches
Many beaches in Ghana, already stressed by pollution and poor maintenance, are now facing a new threat: e-waste.