Consortium plans swift input

By Damaria Senne, ITWeb senior journalist

Johannesburg, 20 Feb 2007

Radio Surveillance Consortium (RSC), which recently purchased a 30% black economic empowerment (BEE) stake in Telkom subsidiary Swiftnet, says it will have strong representation in the company`s operations.

In addition to two representatives on the Swiftnet board, the R55 million Swiftnet shareholding allows RSC representation on every committee set up in the course of doing business, says RSC consultant Kishore Ragunandan.

The shareholder agreement also stipulates that RSC, a consortium of black businesses which was formed to bid for the Swiftnet stake, provides Swiftnet with a research and development executive, he says.

Synergy

Through Radio Surveillance Security Services (RSSS), one of the consortium members, RSC offers Swiftnet access to a number of security patents used for the monitoring of fraud in the telecommunications industry, Radunandan says.

RSSS`s Cable Security division is responsible for the monitoring and prevention of theft of Telkom`s cable network nationally, he says.

Durban-based RSSS, formed in 1992, also has patented solutions to electronically monitor credit card and cheque fraud, and electricity theft, he adds.

Through the Swiftnet deal, RSC will gain access to Swiftnet`s national infrastructure and the opportunity to showcase its products, says Ragunandan.

There is a lot of synergy between the business of Swiftnet, which provides wireless services to companies that offer vehicle tracking, credit card and point-of-sale verification systems, and RSC, which specialises in telecoms and network fraud management, he notes.

Capacity

RSC also gains the opportunity to prove to large potential clients, such as banks, that it has the capacity to deliver to their requirements, Ragunandan says.

"Radio Surveillance is a small company and to gain market share with big business is virtually impossible because of fears that a small company may be unable to deliver services efficiently."

Ragunandan adds that previously-disadvantaged individuals make up nearly 90% of RSSS`s staff complement.

RSC financed the Swiftnet stake through a Standard Bank loan, Ragunandan says.

A Telkom spokesman says the operator is satisfied RSC`s structure meets the Department of Trade and Industry`s BEE guidelines.