2006 – Focus on Africa
The entrepreneurial market has hardened throughout 2006. Operators tend to prioritize vendor financed roll-out, a trend strongly pushed by the Chinese technology suppliers and equally met by the well established technology providers like Ericsson. Resent merger processes in the vendor market has likewise contributed to the strengthened position of the vendors. The consequences for the entrepreneurs are reduced prices, increased requirements to contractor financing and one step down on the food chain.
In this highly competitive market you will only experience success if you manoeuvre wisely. Management must strive to maintain an image of a dynamic and innovative company; and in addition meet the requirements regarding growth, competitiveness and not least find ways to meet our customers’ expectations of pricing and contractor financing.
In order to fulfil these obligations, Reime NIS Group has continued to focus on developing innovative site solutions adding to operator’s profitability. We believe that this approach will serve us in the long run and continue to build our brand as an innovative entrepreneurial partner for operators who prioritize efficient rollout. Second generation of our Reime Compact Site Concept is being launched in Nairobi in May 2007 where key personnel from our business partners will attend our presentation. We expect a good respond to our concept and are looking forward to Q3 and Q4 of 2007 with great expectations.
The effect of increased competition directly reflects obtained EBITA for the year. However, with an EBITA of € 3 mill representing 10% of the revenue, we are well prepared to continue our expansion in the African continent and act as a trend setting service provider to the network roll out business and to further strengthen our position as one out of very few truly focused roll-out entrepreneurs.
During 2006, Reime NIS Group closed the business operations in Indonesia. Our businesses in Kenya, Nigeria, Ghana and Norway are all well positioned, and they all have aggressive plans for this year, covering the following elements:
We have under incorporation four new subsidiaries; Reime Côte d’Ivoire, Reime DRC, Reime Uganda and Reime Tanzania. All of these companies will be incorporated as limited liability companies fully owned by Reime NIS. In addition, operations will expand into the Congo Republic during Q2 of 2007 giving Reime NIS Group a significant expansion of its footprint in Africa.
We are looking forward to another interesting year in the telecommunication business climate.
