Orange ups SA profile

By Candice Jones, ITWeb online telecoms editor

Johannesburg, 04 Jun 2009

France Telecom-owned Orange Business Services has decided to increase its South African visibility.

The company last night announced that, while it has had a presence in SA for some time, it has remained under the radar thanks to regulatory pressures. However, under a new government, the company has decided to increase its brand presence and start making headway in the local market.

Last year saw the South African telecoms sector take a dramatic turn towards liberalisation, with hundreds of businesses being licensed to the same extent as Telkom and the mobile operators. The new regulatory environment could open opportunities for an internationally backed business like Orange.

While the company could not provide specifics on its strategic plan for its new profile, it did hint at the possibility of growth in the local market through acquisition or partnership. The company also hinted at the possibility of growing its competitive strategy locally, which could give other providers a run for their money.

The local business provides a range of telecoms and data services, primarily to the business market, and currently courts some of the other mobile providers as customers. There have been rumours that a Telkom-Orange tie up is in the offing, but neither company would confirm or deny the speculation.

However, Telkom previously noted it is not looking for a mobile marriage, since it has the capability to provide mobile services in its own capacity.

Orange has several other opportunities it can follow in SA, both in converged services, with one of the smaller Internet service providers, or in the mobile arena, either as a partner, or under its own steam.

The backing of its parent company, France Telecom, can only provide solid ground for Orange. France Telecom is one of the few international businesses that have remained stable under the crush of the global economic crisis.

Unlike rival business British Telecom, the company has not retrenched staff during the last few months. Instead, it has snapped up several African providers, including Telkom Kenya, just last month.

The company has a strong North African presence, but still has growth opportunity in the sub-Saharan market. Locally, the company owns a majority stake in SITA Aero, which gives it access to a large satellite network. The company says it is committed to growth in Africa.