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OPERATIONAL REVIEW - TELECOMMUNICATIONS |
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The telecommunications interests represented 39% of total group
revenues at R4.7 billion for the year under review compared to
38% at R3.7 billion the previous year. |
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| A contribution of 37% or R356 million was made to the
group’s total operating income which compares to
35% or R253 million for the previous year. |
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| In the Altech group, telecommunications is currently
focused on the provision of wireless communications through five
companies, Autopage Cellular, AEW, Netstar, Alcom Matomo
and Alcom Radio Distributors. |
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For the year under review, Autopage Cellular continued
to show strong growth on all three networks. The sale
of pre-paid vouchers grew consistently and gross connection
performance for the year was ahead of budgeted connections.
Net post-paid subscribers increased by more than
74 800
and churn management projects proved extremely successful.
Autopage Cellular remains focused on offering unique
and value-added services for communications users. An
example of this focus is the recently signed agreement
with Sentech to distribute the “My Wireless“ broadband
service. |
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Altech’s joint venture transaction with the Econet Group
to form AEW which was concluded in December 2004, involves AEW
interests in Botswana (Mascom Wireless), New Zealand (Econet
Wireless New Zealand), Bermuda (Econet Wireless International),
UK (Econet Wireless Limited and Econet Satellite Services) and
Nigeria (Econet Wireless Nigeria, renamed Vee Networks). AEW
is currently pursuing a number of projects in several countries
in Africa. |
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The Netstar subscriber base for stolen vehicle recovery
services is now over 323 600 vehicles and, despite indications
that the rates of theft and hijacking are decreasing slightly,
Netstar’s
extensive ground and air recovery teams still respond to around
600 incidents per month throughout southern Africa. The Sleuth
device has been very successful and the Vigil fleet management
product provides a comprehensive service offering. Expansion
internationally remains a targeted point of focus for the Netstar
business. |
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While concentrating on its major South African Police Services
digital terrestrial trunked radio network in Gauteng, Alcom
Matomo has also submitted tenders for similar communication systems
elsewhere and has undertaken a number of other telecommunications
related projects, mainly for cellular network operators. Alcom
Radio Distributors (ARD) achieved the Top Distributor Award for
the Motorola Middle East and Africa region for the 2004 year. |
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| The telecoms market for cable, both locally and internationally,
remains under pressure but during the latter part of
2004, some improvement was experienced, predominately
at the Aberdare Telecoms Networks copper operation and
at our operations in Spain. The strength of the rand
and the Euro continues to make exports less globally
competitive and the focus remains on efficiencies
and cost management at these operations. |
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The Battery Technologies operation produced a sterling performance
on the back of improved demand in the cellular telecommunications
sector and the successful drive into sub-Saharan regions and
Nigeria in particular. |
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Rentech, the solar business, experienced difficult conditions
but maintained a reasonable performance. |
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