Voice telephony systems supplier Nortel is hoping to win business from the second national operator (SNO).
The SNO, which will begin operations at the end of the month, is a key focus area for the local Nortel office, says VP for Africa Yves Roux.
Accounts director Brian Thompson explains that initially, Nortel hopes to provide services in the optical and softswitch areas. Later, the company would like to be involved in CDMA provision.
"Leased line infrastructure is one of the easiest networks to install, and where the existing operator is most likely making good margins. This is the first market an SNO will usually enter and cut prices," Roux says, commenting on the impending arrival of the operator.
"In most markets, this has the effect of changing the way some businesses operate. The reduced leased line costs enable some call centre operations to decentralise, while some companies will start decentralising purely because of the cost advantages."
Global trends
As ADSL takes longer to implement, he says, this is not likely to be the SNO`s initial focus.
"One of the first effects of the SNO`s entry is a decrease in the price of bandwidth," says Roux. "In our experience in over 15 countries, a number of similar trends have evolved with the entry of an SNO. They have been similar in North America and Europe, and we anticipate similar trends in SA."
Roux is also hopeful of continuing the company`s trend of being involved in liberalised markets. "In the '90s, when deregulation occurred in North America and Europe, of the 18 new licence backbone implementations, Nortel was involved in 15."
The SNO will also be in a better position to take advantage of new technology, the company says. As is the general trend, Nortel says, Telkom would be using older technology, which could place it at a disadvantage.
In terms of Nortel`s plan for Africa, Roux says the company is developing bases in two countries, Algeria and SA. Algeria, because the telecommunications infrastructure is being upgraded following the end of civil war in the 1990s, and in SA, because it is becoming the gateway into Africa.
"We see SA as the gateway into the rest of the African telecoms market and therefore crucial to Nortel," says Roux.
The company claims it is the world`s largest voice telephony systems supplier, based on 2005 shipments.
Related story:
SNO signs network-access deal
Share
