How To Start A Telecommunication Company In South Africa
What is Telecommunication Company?
A telephone company, also known as a telco, telephone service provider, or telecommunications operator, is a kind of communications service provider, more precisely a telecommunications service provider, that provides telecommunications services such as telephony and data communications access.
How To Start A Telecommunication Company In South Africa
Step 1: Do Your Research
In your survey, you determine how much capital you have to invest in the business. You also have to think of how to get facilities to fund the expensive projects you will embark on.
Furthermore, you will think of your area, state, region, and even countries your network can cover. Consider also if your network can integrate other services like Internet service provision, mobile money and other services telecommunication companies provide.
Like I noted earlier, this business involves investing a lot of money in it to deploy necessary technology like Fiber Optic Cables, masts, etc.
You also have to think of how to get into the market and compete with multinational telecom companies like MTN and Etisalat, and how to make a mark on the market. Major factors that make telecommunication network preferable to others are quality of service, cheap call rates and wide coverage.
Furthermore, if one chooses to get into recharge cards printing, it involves less capital. In this case, he has to check if he has to create the demand or if the demand is already there in the area where he intends to start the business.
Step 2: Acquire buildings, facilities and start installations
Like I said earlier, this business is capital intensive especially when one is coming in to compete with the big names in the industry.
It is important to acquire state-of-the-art telecommunication equipment/facilities because they will offer your intended customers better services. Acquiring facilities and installation entail deploying masts, coaxial cables, radio wave, Fiber Optic Cables, standby generators at base stations, computers, mobile phones, VSAT, and so on.
Step 3: Register the business at Corporate Affairs Commission (CAC)
At CAC, you will be given a business name search form (Form008) which is used to search for available business names. Name search normally takes about one week after which you are expected to come back to check the status of the registration.
If it is available then you have to proceed. The next procedure is to collect a form called Registration of Business Form.
You are expected to pay Rs 10,000 for companies with shareholder base for every Rs 1M. After this get an affidavit form from them and go to any magistrate court.
You are expected to pay about Rs 250 at the court. After this, the communication business is registered, the name is ready and this is the final step for one to take if he/she wants to start a telecommunication business in South Africa. You can go further to incorporate it (if need be).
Step 4: Employ people
People to be employed are engineers, marketers, distributors, customer representatives and others for a large scale telecom business.
But for a small scale telecomm business like recharge card printing, a few persons like a marketer and a distributor may just be employed to help in the distribution and sales of the cards in the event where the business owner feels there is need to get workers to assist him/her.
Frequently Asked Questions (FAQs)
What is the biggest telecommunication company in South Africa?
Telkom, the partially state-owned telecommunications provider in South Africa, is the largest company providing both fixed line and wireless packages. Other popular internet providers in South Africa include Neotel, MWEB, Vodacom, MTN and Cell C.
How much does it cost to build a network for a company in South Africa?
How much does it cost to have network cable installed?
| Computer Network Installation Cost | |
|---|---|
| National average cost | $3,800 |
| Average range | $2,500-$4,500 |
| Minimum cost | $1,000 |
| Maximum cost | $6,000 |
What are cogs for a telecom company?
COGS includes the costs of purchase, conversion, materials, inventory readiness and the direct labor costs of producing the goods and allocated overhead. COGS excludes indirect expenses such as distribution and sales.
How does telecom business work?
The telecommunication sector is made up of companies that make communication possible on a global scale, whether it is through the phone or the Internet, through airwaves or cables, through wires or wirelessly.
What is your understanding of the telecommunications industry?
What is the Telecommunications Industry? The telecommunications industry is made up of cable companies, internet service providers, satellite companies, and telephone companies. Telecommunications is defined as communicating over a distance. The industry’s origin can be traced to postal courier services.
Is telecom business profitable in South Africa?
The average net profit margin for companies in the telecommunications sector is approximately 17%. The average net profit margin can be higher or lower depending on which sector the company operates in and its amount of overhead expenses.
Is Telecom a good career?
Telecommunications is considered to be a good career path as the industry continues to evolve and grow with the boom of new technology. Wireless equipment provides more reliable services, and businesses are competing to offer the fastest internet and best deals.
Who owns cell towers in South Africa?
MTN to sell South Africa towers to IHS for R6. 4 billion. MTN is selling its more than 5 700 of its cellphone towers in South Africa to NYSE-listed IHS Towers.
How do telecom companies generate revenue?
Telecom companies generate revenue via subscription mobile services, fixed landline, and wireless broadband services. These companies offer a high-speed broadband facility, wireless network, and mobile security-related services to businesses.
Why should I invest in telecommunications?
Investments in telecommunications infrastructure could not only provide a short-term boost to the economy, but also lay the groundwork for long-term improved growth and employment perspectives.
Does telecom include Internet?
Telecommunication (telecom) involves the exchange of information, such as voice, video and data, using electronic devices. It’s a wide term that encompasses many technologies like wireless and wired phones, fiber optics, radio, TV, the internet and other means of transmitted communication.