Telecommunications service provider Orion Telecom has raised its annual turnover to R750 million. Its yearly increase in profits place the privately owned business on a par with the JSE Securities Exchange`s Top 100 companies.
The company develops, installs and supports a range of products and services that reduce the cost of telecommunications for business and add value by streamlining operations.
From its inception 10 years ago, the business has been built on a number of pillars and strategies that have positioned it well for long-term success, says Jacques du Toit, sales and marketing director at Orion Telecom.
"These include exceptional technology, an understanding of the local market and its specific needs, a proven business model, the establishment of a national footprint, and our development of a solid black economic empowerment programme, both at executive level, and on the ground.
"We develop technology to suit the needs of our customers and we do not sell generic solutions," he adds. "A major driver of our ongoing success is the fact that we look at each customer as a completely new entity with particular requirements. Customer relationship management is a critical element of our business, as is the fact that we absorb much of the risk posed to clients by Telkom`s infrastructure."
Du Toit says the company`s insistence on global standards and its focus on skills transfer and development are other factors that have contributed to its success. Its two-pronged BEE strategy has seen the company achieve compliance at corporate level, while at the operational level Orion has worked with the communities where its branches are located to develop skills.
"Part of our strategy is investing in the local communities from which we draw our business," he says.
Looking ahead, Du Toit believes that any national network operator and further deregulation of the telecommunications sector is set to open up broader opportunities for Orion.
"The best way for them to attract clients is through a strong carrier; with over 60% of the corporate least-cost routing traffic being channelled through Orion, we are an obvious choice. We offer critical mass as well as a strong billing engine."
Du Toit says the telecommunications market has changed over the past few years, with smaller companies either having folded or been swallowed up by larger entities. He attributes this to the intense capital outlay required to implement and maintain a managed infrastructure 24x7x365, and says that high-level skills requirements and call redundancy also play a part.
The company is awaiting clarity on the rights of value-added network services in terms of the Electronic Communications Bill (formerly the Convergence Bill), which should be released with the next two months. "In terms of where the Electronic Communications Bill is leading us, it is likely that it will have an impact on interconnect and self-provisioning, moving us further into the application engineering space," he says.
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