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An update on the state of the electronics industry in South Africa - Part XIII

20 October 2004 News

Tellumat has a long history of innovation in the electronics industry, being formed out of Plessey that was established in the UK in 1917. Plessey established a presence in this country (in Cape Town) during the 1960s and the local company (the last survivor of the Plessey empire) was listed on the JSE in 1995. During 1998 Plessey itself was acquired by Dimension Data and the electronics business Tellumat was established as a privately-owned company. Today, the company operates four divisions, these being Communications, Defence, Syntell and Contract Manufacturing. Electronic manufacturing is carried out at the previous Plessey premises in Retreat.

Until late 2003 Tellumat also operated a Broadband Wireless division that had over the last few years developed a world-leading range of microwave radios operating in licence-exempt bands. This division was sold to Stratex Networks in the USA who had been selling the product line under a private-label agreement for more than a year. Stratex has indicated that they will continue to undertake further development in South Africa and that Tellumat Contract Manufacturing will continue to manufacture the radio modules for them.

Tellumat Contract Manufacturing operates a state-of-the-art facility that provides a full electronics assembly and manufacturing capability to third parties. It has lead-free soldering capability already in place as required by European legislation from 2006. For third parties, contract manufacturing can greatly reduce time to market, reduce costs through better utilisation of installed capability and it allows the developer and marketer of the product to focus on their core business. Contract manufacturing is widely used throughout Europe, North America and elsewhere as it eliminates the capital costs of setting up a manufacturing facility.

The Defence Division has a long track record in supplying and supporting advanced radar, navigational, avionics and naval systems. As one example of its capability, Tellumat was awarded a contract by ATE for the production of a C-Band communication system (CBACS) for its Vulture unmanned air vehicle (UAV) system for the SA Army. The Vulture is designed to perform artillery fire correction for vehicles such as the Denel G6 155 mm mobile artillery system (which has a range of fire in excess of 60 km) and to also provide tactical surveillance to 200 km. The system provides for both digital video (monochrome or colour) and data communication. The third generation CBACS data/video link system was developed by Tellumat over a period of 18 months and, besides UAVs, it is expected to find applications in helicopter and terrestrial line-of-sight communications. ATE's Vulture could also become an integral part of future international sales of the vastly upgraded Denel G6 and T6 mobile artillery systems.

In March 2004, Tellumat Navigation Systems and Harambe Technologies joined forces to form SIA Solutions, a supplier of navigation and approach systems. Tellumat increased its Black Economic Empowerment shareholding by selling a 40% share of the Navigation Systems business to the black owned group, Harambe Technologies, while retaining the other 60% stake.

The Communications Division manufactures and provides voice and data solutions for business and community users. Standard products range from basic telephone units through full digital PBX terminals and software. Those fortunate enough to have travelled on the new Blue Train would have experienced the sophisticated cordless telecommunications system developed and installed by Tellumat. The system uses an embedded PBX solution connected to an internal DECT system, which is itself connected to a GSM external communication system. Each of the 42 suites on the train are equipped with a phone, with a further 17 handsets utilised by staff.

Syntell Networks offers the Neuron electricity and water prepayment management system that is used by more than 100 municipalities in nine different countries, including Cape Town, where the 250 000 customers use the Synapse Online System. This allows purchases to be made over a range of dispensing mechanisms including the Internet and the cellphone. In a joint venture with municipalities, Syntell launched the www.payfine.co.za site in April 2002. This allows motorists who are caught by speed cameras to view and confirm their violation over the Internet and to pay the fine at the same time.

This series looks at some of the leading companies in the electronics industry in South Africa today. To simplify presentation and avoid perceptions that they are being 'rated' in any way, this coverage is being presented in alphabetical order. Do not miss the 17 November issue of Dataweek where we look at a local company that develops and manufactures a full range of digital satellite, terrestrial and cable decoders.





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