Allied Electronics Corporation (Altron) expects to benefit from liberalisation in the telecommunications industry, a surge in GSM uptake on the continent and SA`s preparations for hosting the 2010 Soccer World Cup.
CEO Robbie Venter says Altech, majority owned by the group, should see new business opportunities through its subsidiary Autopage as the South African industry becomes more deregulated.
Autopage, which has 10 000 broadband subscribers and a customer base of over 700 000 mobile subscribers in total, sells-on services from Cell C, Vodacom and MTN. The company will continue to be an independent reseller, says Venter, but he does not discount looking into wireless as a means to grow.
While it`s still too early for Venter to make concrete statements about the company`s possible future endeavours, he says a move towards data should continue. By 2010, the data volume is expected to exceed the voice volume.
He says that, while there are licence issues that need to be resolved by the Independent Communications Authority of SA, Autopage would like to migrate up the value chain in terms of broadband.
"WiMax is of great interest from a technological point of view," he says. While a quantum leap from what is currently available, this will require clarity on both licence and spectrum, he notes.
"We are looking at a pilot licence, but in the long-term, more spectrum must be made available. The current spectrum is crowded."
Digital TV
The migration to digital television should also bear fruit for Altech. SA`s progress to high-definition television will take place in two steps, he says. The first is a move to digital transmission from analogue, which should start transmission in about 2009. The second is the transition to high-definition, which is expected to be available to a smaller degree by 2010.
Altron`s experience in the personal video recorder (PVR) and set-top box market puts it in the pound seat to benefit from the transmission, as most TVs will require a "decoder" to receive digital signal, Venter says.
SA, he says, will require enhanced infrastructure to handle the 2010 World Cup. This means increased bandwidth, data cabling and copper cabling, which Altron - through its subsidiaries - is in a position to supply.
Geographic expansion
Altron`s target is to increase its international revenue from the current 17% of turnover to between 25% and 35% in terms of non-rand denominated currency. It aims to do this either through internationally owned business, or through increased exports.
However, it intends to focus on niche markets. "I have no illusions over conquering the US or anything like that," he quips. Africa is a key part of that strategy and the company has recently increased the rights it has in terms of Xerox and Altech on the continent.
This has provided it with a "nice base" in Africa. In addition, NamITech West Africa is already running at full capacity supplying prepaid vouchers to the Nigerian market. Venter says the company intends broadening into other West African countries.
Turning to the rest of the continent, he says Africa is one of the fastest growing GSM markets globally. Much of the continent is leapfrogging fixed-line communications, opting instead for mobile. And, with electricity supply erratic at best, Powertech can expect to benefit from the need for backup battery supply.
Bytes Technology Group spent lb5.5 million on two UK acquisitions recently and Venter says he is "comfortable" with their performance so far. In Australia, the company has also targeted a niche market and has a Sydney-based plant that manufactures set-top boxes.
There has been interest in the company`s locally manufactured PVR system from Dubai, Spain, Brazil, Mexico and Israel.
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