Alkan CIT expand into new business lines

Alkan CIT has installed over 22,000 towers in the MEA region however the company has begun to diversify its services and offerings to better meet the needs of its customers. TowerXchange speak to Alkan CIT’s Africa CEO, Mohamed Atef to learn more about the company’s exciting new ventures in energy, fibre, automation and control solutions and engineering services.

TowerXchange: Please can you re-introduce Alkan to TowerXchange readers and explain some of the developments at the company since we last interviewed back in 2013

Alkan CIT is a leading system integrator and end to end solution provider, headquartered in Egypt. Whilst Egypt is Alkan’s largest market where we also hold a telecom infrastructure license and Private VSAT hub, providing broadband satellite communication, we have a footprint in twelve African countries, with the Cote d’Ivoire being the most recent market we have entered, in addition to five countries in GCC. I am responsible for the African region, excluding Egypt (which is managed by a separate team).

As the company has grown it has expanded both in terms of its client base and the services which it offers. We now work in the broadcast sector where the core business is very similar to our offering in telecoms; we have become a full turnkey service provider in the fibre optic space, partaking in everything from design and excavation through to O&M and optimisation of networks; and we have taken our first step into the energy solution space where we have some very exciting developments.

TowerXchange: Can you tell us more about these developments in the energy space?

We have created a dedicated business unit which oversees energy solutions With a full range of hybrid power system configuration and equipment, including Genset, ATS, Battery Banks, Wind Turbines, Solar Photovoltaics, Mounting Structures and more, Alkan CIT work closely with End Customer to customize an optimum solution that meets customer needs.In 2016 we started to work on a prototype for a diesel generator designed to suit the West African market. We looked closely at the type of engine, controller, specifications and configurations that would suit the region and invested in developing this design independently of any commitments from customers. Once we had a prototype in place we invited our customers to test the model and provide comments and feedback on modifications that they would like to see. Off the back of this we already have secured our first order for the generator and have sent the first batch to our client in West Africa. We are in the process of finalising the installation and once it is up and running we will use feedback to further enhance the generator. The generator will be entirely assembled by Alkan and will carry the Alkan brand.

Our goal is to provide a more integrated offering to our customers and supply a generator is one of the ways we are doing this. In line with this we are also partnering with battery manufacturers so that we will not only install and commission batteries but so that we can supply them to our clients and provide full warranty services; through partnerships with the supply chain we are expanding our offerings to clients.

We are also starting to evaluate the opportunity to supply electricity to our customers under an ESCO arrangement. Alkan’s holding company has access to competitive finance which would support the business model and we have extensive operational experience in the tower space.  We are just in the proof of concept phase at present and have no contracts in place but we are starting to share the strategy with our partners.

TowerXchange: In addition to the launching of your energy business, what other exciting projects can you report from the past year?

In Northeast Africa we are a main partner with ESRI Northeast Africa, a leading GIS (Geospatial Information System) provider. In partnership with ESRI we developed an interactive map showing the location and key details of towers in one of our markets. With a strong on the ground presence through various local offices Alkan conducted site surveys to examine the structural capacity of the towers, looking at what antenna were hanging on them and at what height and further documenting what other equipment was present (for example what type of diesel generator was in place). Through these efforts we have developed a comprehensive asset register giving a level of detail which was previously lacking. Where information on given towers had been recorded it was generally held in excel spreadsheets but we have worked with ESRI to create an interactive map where you can simply click on a site and obtain all the information that is required.

Our ability to be flexible and diversify into new areas and rapidly adapt our offering is one of Alkan’s biggest strengths. For example, last year in West Africa we undertook a project for one client to carry out structural analysis of their portfolio of sites with a view to ascertaining which were suitable candidates for the addition of further antennae. In carrying out the analysis we found that 80% of sites were unsafe and as such this initial analysis has now resulted in a reinforcement project for the client. Being able to adapt our resources quickly in each country is a fundamental part of our value proposition.

TowerXchange: Training and retaining high quality staff is commonly cited as one of the biggest challenges in sub-Saharan Africa; how do Alkan tackle this problem? 

As a company we work in some very challenging markets but we invest heavily in developing a good skills base within the company. 80% of our ~2000 employees are local; this is critical in controlling costs and providing a competitive price to our clients. With the industry expecting international standards of quality and HSE, our balance of local and international employees helps ensure that these standards are met. With high levels of training and an audit team which inspects works, we have built a reputation for quality and HSE which we are very proud of. We have built over 22,000 towers since 1998 and have had no engineering defaults – this is something that sets us apart from our competitors.

As we have developed a highly trained team, ensuring that we retain staff has become of key importance. As an international company, we provide a number of opportunities for development and growth including international placements or secondments to project management offices. We also work to ensure that our staff are multi-skilled; not only should they be able to install batteries but they must also be able to carry out a multitude of I&C tasks. Having staff who can execute a spectrum of tasks when on a given site helps in ensuring we can provide a good price and maintain good margins.

We need to customize the ways we reward and motivate employees to take into account the different environments and cultures in which we operate and ensure that they have continuing professional development.

TowerXchange CIT: What is on the cards next for Alkan CIT?

To date, the majority of our business has been in managed services, tower design and structural analysis but there are several new business lines in which we see a lot of potential. There is a major demand for fibre across West Africa and we envisage Alkan, in conjunction with our partners, playing a key role in this. Our engineering services in the space aren’t just limited to installation, we are involved all the way from design to operations and maintenance to quality checks and network optimization.

We also see big potential for our energy division, supplying more of our Alkan branded generators, working with equipment suppliers to provide more holistic offerings to our customers and continuing our exploration of ESCO opportunities.

In addition to our energy solutions we are also looking at providing and installing automation and control solutions such as smart meters. We are currently in the proof of concept phase but are in discussions with MNOs about providing this as a solution.