Telecoms9.05.2008

Pleased with progress

TWO MONTHS SINCE its official launch, Vodacom Business says it’s very happy with its progress so far and should conclude agreements with some “key customers” over the next couple of weeks.

Vodacom chief operating officer Pieter Uys – a possible successor for the CEO position when Alan Knott-Craig’s contract ends next year – says in a written response to questions posed by Finweek that the new operator had already rolled out infrastructure and services in 10 months that ordinarily took 10 years to complete.

“We’re able to do that because we have the right skills, market knowledge, commitment and executive backing to make that happen,” says Uys. Vodacom is rolling out fibre optic cabling in partnership with emerging fibre infrastructure provider Dark Fibre Africa and says its first fibre optical cable ring, in Gauteng, should be completed by end-May. “We’ve also started the roll-out of 30 fibre spurs into key customer sites.”

Vodacom Business announced at the launch in February it would offer corporate connectivity and information and communication technology services (ICT), setting itself up in competition with established players such as Internet Solutions, Telkom and Verizon Business.

In addition to its progress in the fibre roll-out, Uys says Vodacom Business had completed its first two data centres, with another 1 000sq m centre coming on line at end-May. It had also commissioned a disaster recovery facility in Bedfordview.

It’s so far offering services such as hosting, Internet access and virtual private network (VPN) services. However, Uys says it will shortly also provide some last mile access services, such as WiMax and fibre access. Other services planned for launch over the next few months include international VPN services, storage solutions, voice over IP and content and application services.

Although declining to name specific client wins, Uys says a number of clients had already given Vodacom Business their hosting business, and the industry’s response to it had so far been “overwhelming”. “We’re attracting business from the established players and acquiring new customers.”

Industry players canvassed independently have mixed views on Vodacom Business. Some find Vodacom arrogant in thinking it can steal business away from long-standing operators in an already competitive market and don’t see its business model being used by other players in that market. But others say Vodacom Business will make a success of it, given that Vodacom is itself a smooth operator with huge clout that doesn’t do things by half measures.

Vodacom will put out its year-end results to March on 10 June, when 50% parent Telkom releases its numbers. The market would no doubt be hoping to hear more detail of Vodacom Business’s progress at that stage, including details of its client wins.

Vodacom Business discussion

Finweek

 

Show comments

Latest news

More news

Trending news

Sign up to the MyBroadband newsletter