1 October 2008
column
Johannesburg — THERE is plenty going on, as usual, in technology and telecom group Altech. In the coming months investors can expect "fairly significant deals" to strengthen the black empowerment shareholding in its operating entities, says CEO Craig Venter.
They can expect more acquisitions, although Venter would not say if these were to be local , or deals to expand its growing global footprint.
Another exciting initiative will see it build on its 51% acquisition of three telecoms suppliers in Kenya to take broadband networks into numerous African countries.
It is also investing in a n undersea cable project led by the Kenyan government, which seems more likely to arrive than an oft-bungled cable initiative driven by SA's government. Once the cable is active it will have vast amounts of bandwidth to resell to operators across the continent, and Africa's pent-up demand for better voice and data services will see the venture generate much of the group 's revenue.
Back at home its UEC division is well placed to churn out set-top boxes to let viewers keep watching television on their old sets as SA makes a long-awaited switch from analogue to digital broadcasts.
That project, however, is subject to the whims of the communications department, leaving things typically vague.
Altech has clashed with the communications minister over the right to build its own telecoms network, winning a legal victory.
Hopefully the department is not churlish enough to let that embarrassing defeat set it against Altech when it awards deals to produce set-top boxes.
Meanwhile, Altech has grown its operating margin from 7,7% to 9%, and earns 77% of its turnover from annuity contracts, making it a solid bet for the future.
The Bottom Line is Edited By Edward West
Be the first to Write a Comment!
Copyright © 2008 Business Day. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
