Altech KDN strengthens network
BUSINESS| 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
Kenya courts technology to woo investorsKenya, East Africa’s lead economic hub, has stepped up its efforts to woo investors through its rigorous incorporation and adaptation of technology to ease business transactions. Read More
‘Prepare for an explosive year ahead’ - Dac SystemsFrom a technology solution supply and reselling perspective, 2015 is going to be a bumper year, says Dac Systems. Read More
The Business Network is the futureHyper-connected business networks will extend business processes that used to stop at the walls of the enterprise, and will fulfill the promise of the real-time global networked economy to reduce complexity without sacrificing sophisticated work, says SAP. Read More
Africa SME Champions Forum: creating an ecosystem to support African championsThe Africa SME Champions Forum closed in Dakar last week, but its work in support of African champions is only just beginning. Read More
Deloitte: Africa GDP to top $3.7 trillion by 2019Africa’s gross domestic product will grow by 50% to $3.7 trillion over the next five years, says Deloitte. Read More
EOH CEO named All Africa Business LeaderAsher Bohbot, CEO of Enterprise Outsourcing Holdings (EOH) Limited, has been named Business Leader of the Year at the CNBC Africa All Africa Business Leaders Awards. Read More
Data revolution will shake banking sector, says NCC chiefThe Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr Eugene Juwah, says Nigeria’s second revolution in data will have a significant effect on the banking sector. Read More
Qrent expands across AfricaAs organisations look to hire instead of purchasing essential equipment such as computers, printers copiers, LCD screens and projectors, the demand for Qrent’s services has grown across the continent. Read More
Africell completes Orange Uganda acquisitionAfricell, one of the fastest growing mobile telecommunications operators in Africa, has announced that it has completed the acquisition of Orange Uganda. Read More
MTN calls for collaboration between mobile network operators and OTT playersA balanced co-operation between mobile network operators and Over the Top (OTT) players is required to develop a win-win ecosystem, says MTN South Africa. Read More
FEATURED STORYGSMA: half a billion mobile subscribers in SSA by 2020
The number of unique mobile subscribers in Sub-Saharan Africa will pass the half billion mark in 2020, says a new GSMA report.
BEST READ NEWS
IN DEPTHAfrica lags on digital migration
Only three African countries have so far completed the digital migration process, and serious issues are hampering the migration in other nations.
COMPANY NEWSVMware Study: Businesses can Take Three Weeks to get Employees Mobile-Ready
EMEA businesses say concerns over trust, ownership and delivery capability may hold back taking advantage of the mobile cloud-era.