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Plessey seeks African growth

Johannesburg, 04 Nov 2010

Dimension subsidiary Plessey is moving deeper into providing infrastructure services in Africa, as it seeks to benefit from renewed spending by cellular operators on the continent.

The company has launched carrier-neutral operations and management services that will be made available to wireless and cable network operators across the African continent. The new unit means Plessey will take on the role of physical infrastructure developer, as well as provide a managed infrastructure service on which any operator can build their services.

CEO Howard Earley says Plessey is building on the services that it has already been providing in Africa and intends to move into providing the entire infrastructure lifecycle, including managing fuel supplies for base-station power generators.

Plessey has been providing radio base stations and outside plant fibre infrastructure in Africa for 50 years.

Growing need

Operators on the continent are coming under margin pressure and, as a result, are looking at ways of trimming costs, says Earley. He explains that sharing infrastructure is one way mobile operators can cut down on capital expenditure.

However, while the operators are cost conscious, Plessey is seeing renewed interest from cellular companies in Africa as operators seek to improve services in the wake of increasing competition, Earley notes.

Plessey intends expanding into east Africa, and is seeking to set up a fixed presence in Kenya, says Earley. Plessey operates in 22 countries on the continent, and has a fixed base in 10 of these countries.

Earley adds that the company will also expand its operations on the back of clients' needs further into the continent, although it is concentrating on sub-Saharan Africa. Plessey is also “keeping an eye on Zimbabwe” as there may be expansion opportunities in the country, he adds.

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