Saab Grintek lands WiMax contract

Saab Grintek has won a multimillion-rand contract to roll-out Telkom's WiMax infrastructure nationwide.

Group CEO Makhup Nyama, who would not disclose the exact value of the contract, says Saab Grintek conducted WiMax trials with Telkom last year and was subsequently awarded the contract two months ago.

Telkom is doing WiMax presentations countrywide in order to gain buy-in from its regional offices, he says. As confirmed by Telkom previously, roll-out will likely start in early 2007.

"Equipment is being sourced now and orders from Telkom are likely to come in by end of November," he adds.

Nyama notes that Saab Grintek has done "exceptionally well" in the past year, with the company reaching its financial target for the year within nine months.

The company's stability comes from its long-term annuity business, with some of the large contracts running for more than 10 years, he says.

Saab Grintek's technology division, which accounts for 80% of total revenue, also enjoyed a strong performance in the past year, Nyama adds. "Revenue from our telecoms business grew by 75% in the past year."

In addition to the Telkom WiMax contract, Saab Grintek has landed a contract to provide iMax technology (which plays a role in the provision of ADSL service) to Telkom, as well as a contract to provide 65 000 prepaid meters to Johannesburg City Power.

The company has also won a tender to facilitate the implementation of the Regulation of Interception of Communications and Provision of Communication-Related Information Act, he adds.

Saab Grintek's growth strategy is based on acquisitions and expansion of services, with new services such as the development of a central database to facilitate mobile number portability as an example, Nyama says.

Expansion to international markets is being done in tandem with the company's customers and leveraging relationships made by Saab Grintek's international defence business, he explains.

"We grow with our customers. Our strategy is that as they go into other markets, they retain us as a service provider."

Nyama says Saab Grintek expects an overall growth of about 15% in the coming year. However, the telecoms business remains a wildcard, he adds.

"If you asked me how much the telecoms division would grow last year, I would have said 15%, but they have grown beyond expectation by 75%."

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