A South African IT niche company that `went international` in a remarkably short space of time, now has its eye on the "vast opportunities waiting north of the Limpopo"
"We`re now not only positioned for leadership in the South African market," says Ambridge Technologies MD, Steve Shaw, "but the entire African region. A lot of institutional investment is being made into Africa to establish network and service providers. And that`s purely and simply because cellular offers great opportunity to cost-effectively provide telephony to those regions where regular, ground-based telecommunications systems just can`t reach."
Ambridge Technologies, formerly Computer Integrated Consultants before its takeover by Europe-based Ambridge Group, came into existence just two years ago and pioneered the Subscriber Information Management System (SIMS) which revolutionised the way cellular network and service providers are able to manage subscriber information and billing. The development led to the company`s domination of its niche and caught the attention of its now international partners. The association not only opens doors in the British and European market, it also provides the stimulation and financial muscle for the thrust into Africa. The company has a three-to-five year plan to be firmly established in African and European markets
"The South African market will become saturated for us quite quickly," says Shaw, "even thought this year SA will have three cellular network players: Vodacom, MTN and a third network provider to be identified soon. Vodacom has nine service providers and it is slowly gaining control of them. MTN have five or six that respond to their network. So the SA base provides between 16-18 opportunities. Although the South African market will continue to grow through the development of new applications and wider subscriber usage, we must look beyond our borders to fulfill our potential. Now that start-up costs need no longer cost an arm and a leg, we`re quietly confident that more cellular service providers will be encouraged to enter the field and grow the industry in South Africa and further afield in Africa."
"Cellular and wireless technology is the great hope for development in Africa," says Ambridge Technologies Sales and Marketing Manager, Mark Milns. "Our low startup and product costs give us a tremendous competitive advantage, especially when you consider that much of Africa`s telephony investment capital emanates from Europe and the US. Their heavyweight currencies are more gainfully spent on the South African product because it allows them to set up more network infrastructure and empower a greater number of service providers. They`ll also be comforted by the fact that they`re dealing with an African company that produces a proven product developed for African conditions. Not only will their funds go further, they`ll also be buying the best on the market. And that reduces their risk in laying out large up front financing."
The South African company comes in on the back of the more expensive hardware infrastructure and provides cost-effective software that gets the network up and running - such as billing systems and customer care management. "If you don`t have an efficient billing system, you can`t generate income," Milns points out. "We know that the product we have and the way we`re approaching the market with our pricing structure will benefit not only investor institutions, but will also have a positive knock-on all the way down to smaller companies and individuals wanting to start up."
Ambridge Technologies has researched its approach to the African market with a Johannesburg consultant specialising in the new economy-style approach in the African context. This has given company executives a clearer focus of how best the African market should be tackled. They have also workshopped their concepts for Africa with a number of network and service providers who also have an eye on the territory across the Limpopo River. "Everyone`s keen to take the next step," says Dave Metcalf, Ambridge Technology`s technical director. "We`ve certainly raised an eyebrow or two with our proposed approach."
The Ambridge Technologies marketing team initially got a feel for the market through representatives in east and west Africa and was sufficiently encouraged by the response to open direct marketing operations last month (March).
"The vast and exciting African market is one of the reasons why Ambridge Group has invested in the South African operation," reports Shaw. "We`ve always regarded Africa as a specific growth area. We appreciate that there are problems to be overcome, but we sense a resurgence of confidence in the region."
The World Bank recently reported that three of the world`s five fastest growing economies are in Africa. Investor confidence is on the rise, reflecting the increase in the number of countries turning their economies around and the return of significant funding through such institutions as the World Bank, International Monetary Fund, NGOs and the G7 governments. "Ambridge Technologies takes its lead from such institutional investment and targets those countries that attract funding from institutional sources," says Shaw.
"The need for communication in Africa is vast," notes Milns. "It has fallen behind in the provision of effective and accessible telephony. Now, with the dramatic development in cellular and wireless technology, the region has a better chance than ever of catching up."
In Metcalf`s view, mobile and cellular application is the only logical solution for a developing region such as Africa. "Radio has a minimum of ground-based infrastructure," he maintains, "no wires and cables to be damaged or stolen. Start-up is expensive, but once you start bringing in those vast economies of scale, the cost per unit comes right down."
While the need for cellular telephony and technology in Africa is virtually infinite, available finance is not. "And that`s why we believe our sensibly priced software will have such great appeal," says Milns. "We can stretch a dollar or a pound a lot further than the competition and still come in with world-beating technology. We believe that Africa is definitely there for the growth."
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