South African unlisted firm Hymax Telecoms looks set to reduce telecommunications costs by up to 40% from 2005 on the back of the imminent deregulation, Hymax chief operating officer John van den Munckhof said on Monday.
The firm provides telecommunications solutions and services to South African companies, and its clientele comprises corporate and small and medium enterprise (SME) markets.
There are about 7 000 corporate clients, and for this sector Hymax uses a direct sales strategy. For the SME market it is estimated that there are 85 000 players.
Hymax provides a basket of solutions and services including fixed-line or cellular solutions, least cost routing (LCR) of international calls, Voice over Internet Protocol (VOIP), managing voice infrastructure and monitoring usage patterns on expenditure.
Van den Munckhof said with the looming liberalisation in the sector, Hymax’s clients will be able to enjoy significantly reduced telecommunications costs. The firm’s partnership with Canada’s Mitel on PABX will enable the local group to offer its clients good delivery of both data and voice.
“We need to make sure that our technology has the ability to enable callers to make international calls without compromising voice quality,” he said.
The gateway enables users to save on international, cellphone and landline calls. International LCR is when a call made from a PABX is routed through an alternate service provider at a discount to Telkom’s normal international call rates.
Ahead of the liberalised landscape, the fixed-line monopoly has slashed call costs to certain international destinations such as China, Nigeria, the United Kingdom and the United States by about 50%.
For the previous 12 months, Hymax has been investing in equipment and software management systems. Its new-generation proprietary software — Managed Voice Services — is meant to drive telecommunications costs lower while optimising communication experience for users.
Looking ahead, Van den Munckhof said when the sector opens up in February and VOIP becomes legal, competition will be fierce but many players will “fall” along the way.
He expects private individuals to start enjoying the benefits of a liberalised sector in late 2006. He noted that there are various gains in store but the authorities still have other issues to deal with — such as interconnectivity — and this might delay the actual overhaul.
Hymax has a turnover of R100-million and 50 employees, and has a distributor dealer channel of about 30. It has a presence in Botswana, Kenya, Mauritius, Namibia and other countries and is currently developing its African market growth strategy given the telecoms growth opportunities on the continent.
The firm’s shareholders are Thynk Capital and RMB Ventures, while its directors and senior management boast industry experience acquired from the UK and locally. — I-Net Bridge