Midrand, South Africa - 7 July 1999

The rapid and efficient roll-out of network infrastructure will be crucial to the seamless introduction and success of a third cellular network operator in the South African market.

This is the opinion of Lothar Pauly, President of Siemens ICN Communication on Air, which is extending its commitment to South Africa for the infrastructure supply of the new operator.

Pauly says Siemens has identified time-to-market as one of the key success factors in the launch of the new network, and the company has geared up to ensure that an aggressive roll-out can be achieved in preparation for network launch.

"Our dedicated local team will have expanded from 70 to 300 within the space of a few months, and we are pro-actively involved in pre-launch preparations, including full GSM network planning and site acquisition throughout South Africa," he says.

Pauly believes Siemens has the competitive edge in terms of roll-out speed, as unlike other infrastructure suppliers, it has long been part of the telecommunications landscape in South Africa. It has also been at the forefront of cellular development in the region, with more than 70% of all Southern African cellular subscribers currently served by Siemens equipment.

"Siemens as a group has been involved in Southern Africa since 1860 and has played a leading role in the provision of South Africa’s industrial and telecommunications infrastructure, the empowerment of its people and the development of its economy. This proven high level of commitment will continue far into the future," he says.

The Siemens Telecommunications’ headquarters at Waltloo, Pretoria, has built an international reputation for innovation, employing some 1700 people across a range of research and development, engineering, marketing, technical services, project management, and manufacturing.

Siemens is moreover one of the few infrastructure vendors with a local manufacturing capability. The factory facility has won a major award for export achievement and is the third most productive telecoms factory of Siemens worldwide, giving lie to the claim that South Africa cannot be internationally competitive.

In 1996, Siemens SA made world history when it developed and built the first intelligent network (IN) platform for cellular operator Vodacom, paving the way for innovations such as pre-paid cellular tariffs.

Pete da Silva, Chief Operating Officer of Siemens Telecommunications, says that the licensing of a 3^rd cellular operator will deliver a range of significant benefits for South Africans in line with the broader aims of improving access to communication services and increasing empowerment. Vital spin-offs created by the increased level of competition should accelerate the rate at which economic and social benefits are offered to a wide range of users.

"At a broad level, increased telecommunications penetration will fuel many direct and indirect business opportunities and so promote the wider objectives of economic growth, social development and empowerment of the historically disadvantaged, " he says.

Among the additional economic benefits of increased GSM telecommunications infrastructure, da Silva cites increased employment, knowledge transfer and increased manufacturing.

"We have an existing track record of establishing key partnerships with local third-party vendors and sub-contractors. The third licence operator will thus have the opportunity to source much of its capital infrastructure from indigenous sources by securing procurement agreements with local suppliers," says da Silva.

Siemens has also demonstrated significant commitment to the empowerment of the South African people, having introduced an affirmative action policy in May 1996, more than two years before the first legislation was passed in November 1998.

"Education, health, housing and training are central to our thinking." Our employees have been helped to buy their own homes through more than 420 low-interest loans, at a cost of over R9-million. Siemens makes regular donations to universities, technikons and schools. Since 1990 we have invested more than R100-million in education and manpower development for the people of South Africa.

"We have set a dynamic goal to increase representation by black and female employees into middle and senior management positions. As at the beginning of 1999, representation across these grades in Siemens stands at 28%," he says.

Da Silva believes that Siemens, as a full turnkey partner in the field of telecommunications, has all the key ingredients to succeed in the infrastructure bid.

"With the financial muscle of one of the world’s largest companies, and combining the resources of our world-class technology and services organisation with our extensive knowledge of the local market environment, we believe we can offer unrivalled support in winning the third licence and establishing a successful cellular business" he says.

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