Altech Tie-Up with Infocom Aims to Cut Prices

By Edris Kisambira

Wed, June 04, 2008 — IDG News Service —

Internet service provider Infocom Uganda has assured its customers they will reap the benefits of the company's increased capital following Altech's acquisition of a 51 percent stake in March.

"With the introduction of new technology, we will have reduced prices [and] better service [for] the customer," said Infocom Uganda General Manager Hans U. Haerdtle. "That will enable us to offer full triple-play services in Uganda for video, voice and data over an IP network."

Haerdtle said that the partnership is set to provide a strong financial background, which will enable the company to embark on an aggressive service roll-out in Uganda.

In March of this year, Altech agreed to pay US$85.2 million for a controlling stake in Infocom Uganda, Kenya Data Networks and Swift Global (Kenya) -- all subsidiaries of Kenya's Sameer technology group. The partnership has created the single largest data service provider in East Africa.

Infocom is the leading wireless broadband provider in Uganda, with around 32% of the country's market share, according to Altech estimates. Licensed to offer full communication services, Infocom operates an extensive WiMax network, the first of its kind in Uganda, and a satellite-based international gateway.

Altech CEO Craig Venter said the acquisition supports the company's strategy of moving up the telecom value chain, expanding its geographic presence in Africa.

"Our envisaged long-term partnership with Sameer, which is a substantial group with significant skills and contacts in the region, will give us strategic advantages, making Altech the pre-eminent data operator in East Africa," Venter said.

Altech has branches in Nigeria, Rwanda and Australia. Its business activities include cellular service provision, TV decoder manufacturing, stolen vehicle recovery, two-way radio systems, secure banking solutions and telecom product services.


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