Telecommunications group Alcatel’s South African operation — in partnership with its empowerment partners, New Seasons — is set to explore information and communications technology (ICT) investment opportunities in South Africa and across the continent, Alcatel South Africa chairperson Peter Vundla said on Tuesday.
Alcatel has a customer presence in 47 countries and provides 11-million fixed lines to the continent. The group has an 8,5-million mobile-line capacity with 40 operators and has domestic satellite ground in 19 African countries.
Vundla — who is also chairperson of New Seasons — said New Seasons acquired a 30% stake in the group to help accelerate economic transformation while adding real value towards company growth, and addressing other pertinent issues.
“Certainly this is a company that can be transformed and that’s why we teamed up. They are unlisted [in South Africa] and we prefer investing in an unlisted environment,” Vundla said.
He added that most black economic empowerment (BEE) deals are characterised by a lack of operational involvement. However, he said, the New Seasons-Alcatel partnership ensures there is technical expertise brought by the BEE entity and this will help result in growth continentally.
Vundla cited education and skills transfer programmes as key towards transformation in the sector. He added that the company is involved in numerous projects to uplift rural communities, help young people bridge the digital divide and ensure ICT application becomes a reality.
Alcatel’s general manager of fixed accounts, Linda Khumalo, noted that ICT usage and penetration is extremely low on the continent, adding that South Africa also fares dismally when compared with other developing countries.
Khumalo said the continent’s state of telephony penetration is ironic. While there is remarkable growth in mobile communications, fixed-line take-up is falling.
“While there has been emphasis on mobile phones, some people are forgetting that in order to be able to accelerate the level of broadband services you need to have fixed lines,” he continued, adding that it was encouraging to see Sentech’s MyWireless and Telkom’s DSL roll-out.
He hailed South Africa’s oncoming telecommunications sector, adding that it will provide opportunities and expedite universal services access.
Looking ahead, Khumalo said the continent will experience three waves of telecommunications market evolution, including multiple new connectivity services and broadband services that have been adopted by some countries.
He added that a user-centric broadband model — expected from 2005 — will encompass any device, any connectivity and yield transparent synchronisation while encompassing convergence or triple play (voice, video and data). — I-Net Bridge