TELKOM plans to invest more than R4,3bn to expand the network and services being offered by Multi-Links, the majority owned Nigerian private telecommunications firm it acquired last year for $280m. <\/p>\n
The expenditure is part of an expansion programme of more than R11bn that Telkom, Africa’s largest fixed-phone operator, will incur during the 2009 financial year as part of an investment strategy to consolidate its position as a leading pan-African telecommunications operator. <\/p>\n
Telkom said it wanted to expand the subscriber base of Multi-Links from more than a million customers as of May to 3-million next year. <\/p>\n
“Capital expenditure of $160m was spent during the 2008 financial year to accelerate the expansion of Multi-Links’ network and quality operating systems,” Telkom CEO Reuben September said on Tuesday. <\/p>\n
“We plan to invest $533m in capital expenditure for the 2009 financial year to further extend the network and services, and take advantage of the enormous growth opportunities in Nigeria." <\/p>\n
Multi-Links operates in several Nigerian cities on a Code Division Multiple Access (CDMA) platform. This is a cellular technology that competes with the standard GSM mobile technology on which many cellular networks operate. <\/p>\n
Multi-Links has been given a unified licence to offer the full complement of roaming, voice, internet and data services. <\/p>\n
The company generated revenue of R845m and a loss before tax of R63,5m in the year to March, but a tax credit helped Multi-Links to post a profit after tax of R49m. <\/p>\n
“Multi-Links’ strategy will focus on brand awareness and promotional campaigns to increase revenue of fixed-wireless and mobile customers," Telkom said. <\/p>\n
“The prospects for Multi Links are good and the company intends to capitalise on Telkom’s brand and access to international connectivity." <\/p>\n
Telkom acting chief finance officer Deon Fredericks said the group’s capital expenditure programme during 2009 would total R11,3bn, with at least R7bn earmarked for investments on its fixed-line network and the balance on Multi-Links. <\/p>\n
Telkom was targeting compound annual revenue growth of up to 10% in the next three years, and expected to benefit from increased revenues from data, broadband and converged businesses, as well as from its subsidiaries. <\/p>\n