TNM on track in mobile, internet integration
In 2014, TNM plc bought the assets of Internet service provider (ISP) Burco Electronic and upon finalisation of the deal in 2015, rebranded the operations of the ISP as TNM Business Services (TBS). Our contributor FRANK PHIRI (FP) caught up with TNM chief executive officer DOUGLAS STEVENSON (DS) to find out how the tie-up is benefitting customers and contributing to growth of the ICT industry in Malawi.
Q:
FP: Tell us more about TBS?
A:
DS: TNM Business Services is a division of TNM established to provide Internet, communication and business related services to the Soho (Small Office, Home Office), small and medium enterprises [SMEs] and corporate business market in Malawi.
TBS currently provides the following services Internet, VPN, hosted services [Exchange, Domain Hosting and Registration), antivirus and security, accounting packages, networking, business connect virtual PABX converged communication services and voice and VAS products through the corporate sales team.
Q:
FP: How did the core ISP business benefit from this integration?
A:
DS: There were many advantages to this integration, some of the most important being the access to TNM infrastructure countrywide, larger capacity on backbone and remote sites, and the aggregation of all the international fibre links giving a much better level of redundancy.
Q:
FP: What’s the differentiator between the products that TNM is offering and those under TBS?
A:
DS: TNM is making the transformation from traditionally being the provider of voice, data and messaging services to a fully-fledged ICT company. The products that TBS are offering have helped to break this mould as they very much focus on the business aspect and in the majority of circumstances do not require a handset. The growth of data all over the world clearly shows that this is where the future of communications is heading. Those communication companies that do not embrace this change will soon find themselves irrelevant. The fact that TNM has not only purchased an ISP but has fully integrated all aspects of this business into its existing network and now made data front and center to its future strategy, is a clear indication that the future looks very bright.
TNM continues to consider convenience for its customers through other means like machine to machine (M2M) solutions. For instance, provision of virtual private networks (VPNs) has moved from the predominant space on automated teller machines (ATMs) to fuels payments channels, and now extending to new modes of payment opportunities on Mpamba where subscribers shall use a scanning mechanism using their handsets to pay for purchases.
Q:
FP: ISP and GSM are different businesses. Under the integrated TNM structure, could you explain how these two services support, and speak with each other?
A:
DS: The two businesses have been different in the past. There is however a clear convergence of the two technologies and very shortly GSM networks will be fully IP based. This means that the voice traffic will actually be carried as data. This is already being demonstrated in applications such as WhatsApp. Currently, all international fiber traffic is fully aggregated which means the GSM and ISP business have full access to all routes and the demand is automatically balanced between the two. This works very well due to the fact that peak demand for the two services happen at different times of the day.
Q:
FP: Are there inter-company charges on the products and services that each of the two distinct operations tap from the other?
A:
DS: TBS is very much a fully integrated division of TNM and as such, all costs come under one structure. This is a great advantage as much of the technology and infrastructure is shared which means ultimately our running costs are lower than an independent ISP.
Q:
FP: How is the tie-up between TBS and TNM core benefitting Malawians? Are there added benefits that core ISP customers are experiencing following the acquisition?
A:
DS: We are able to offer our customer base much better rates on services due to shared infrastructure costs. Another major benefit for the customer is they will very shortly be able to receive a single converged bill for all the individual services they sign up for with TNM and this list will be extensive as TBS will be providing a full range of services necessary to run any size of business.
Q:
FP: Overall, how is the integration contributing to the ICT industry in Malawi?
A:
DS: This integration has led the way in terms of what the future will look like for communications providers in Malawi. It is the first example of a merger of the two technologies in a single organisation and has given TNM a strong presence in the data market. TNM will continue to build on this strength and demonstrate itself to be the provider of choice for all ICT requirements in the coming years. TBS works closely with the TNM innovations department to identify technology trends and to be leaders in taking these to market. This requires “out of the box” thinking and to look beyond the obvious to see how technology can be relevant and life changing in our specific environment.
Q:
FP: Does TBS support youth in ICT? Explain what the company is doing in this arena
A:
DS: Youth and ICT are an important focus for TBS. The youth are the future developers and users of our products and it is important to keep this fact in mind when formulating a long-term strategy. With this in mind, TBS recently sponsored MHUB with free Internet bandwidth in order for the young developers in Malawi to work on their applications for a competition being run by TNM to identify talent in Malawi. The winners of this competition were flown to Silicon Valley in America and had the opportunity to meet high profile companies in the ICT sector including Facebook.
Q:
FP: What new products can the market expect in the near and long-term future?
A:
DS: A lot! We have lined up a number of new exciting products and services to be backed by our robust and integrated network platform. Customers should gear up for these. n
