Pan-African telecom operator, Seacom is looking to grow its market share through acquisitions.
This was revealed by Byron Clatterbuck, CEO of Seacom, at a business update session with the media at the company's Johannesburg HQ.
Seacom is a submarine cable operator with a network of submarine and terrestrial high-speed fibre-optic cable that serves the East and West coasts of Africa.
Its reach extends into Europe and the Asia-Pacific via India. The Pan-African network uses bundled backhaul, open access points of presence and global partnerships to provide end-to-end wholesale and enterprise connectivity around the world for African and international network and content operators.
When Seacom launched its fibre optic network along the East African coast in 2009, expectations were high that it would lead to lower connectivity costs.
The company is on an expansion drive, as it sees a lot of opportunities on the African market, spurred by the continent's young population.
"In today's business, you have to acquire or you will be acquired," said Clatterbuck, outlining the company's business strategy.
For the acquisitions, he noted, the company will target businesses that suit the market that Seacom is playing in, especially those that provide last mile connectivity. These businesses must also be in Seacom's licensing parameters, he added.
"Our biggest target is the last mile and we have the backing of our funders to make these acquisitions," he added.
Seacom is privately funded and 75% African-owned. Current ownership structure is as follows: Industrial Promotion Services with 26.56%, Remgro Limited 25%, while Convergence Partners and Shanduka hold 12.5% each. Herakles Telecom holds a 23.44% stake in the project.
The company is also looking to exploit its partner ecosystem to grow market share.
Grant Parker, head of Seacom Business, pointed out that in three years' time, the company is targeting to have about 70% to 80% of its business executed through indirect partners and about 20% to 30% via direct partners.
Currently, Seacom has roughly 1 000 direct and indirect customers, with about 90% of them based in SA, Parker said. The company has 120 partners in SA. It also has presence in Kenya, Mozambique, Uganda and Tanzania.
Also speaking at the event, Suveer Ramdhani, chief development officer at Seacom, said Africa presents a lot of opportunities for the submarine cable operator.
"Although Africa is still behind in regards to connectivity, by 2020, the continent will have 725 million smartphones and one billion broadband connections."
He added that the other advantage is that Africa has a young population with about 300 million people aged between 15 and 24. These will grow into the largest population on the planet in 20 years, he pointed out.
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