Telephone operators are searching for fresh business opportunities through rate reduction or by entering markets that are still not sufficiently exploited by large companies. This is the case of the Málaga operator Teleconnect who, despite having an A-type license allowing them to develop their landline telephone and Internet services throughout Spain, have opted to centre all their efforts on the coastal and island areas.
Teleconnect, a company founded with Spanish capital in June 2000 by Nicholas Bruemmer, CEO of the firm, choose the Costa del Sol to start its activity. In its first fiscal year, the company has already invoiced 2.1 million euros (350 million pesetas).
The operator has its headquarters in Marbella and branch offices in Malaga, Madrid and Palma de Mallorca, although it will soon start to operate in Barcelona, the Canaries, Vigo, Asturias and Alicante before the end of 2001.
This layout elevates the sales forecast for this year to 11.4 million euros (1.900 million pesetas). Nicholas Bruemmer explained that the objective of Teleconnect is to “position ourselves as the third-largest national operator in coastal in coastal and island areas by the year 2003, with market shares above five percent”. To this end, Teleconnect foresees investing around thirteen million euros (2,163 million pesetas) in the acquisition of new telecommunications equipment, Internet equipment and network development. To meet this cost the company plans to make several capital increases. The CEO of Teleconnect estimates that by 2003 “we will have 140,000 customers and sales of 76,3 million euros (12.695 million pesetas), 70% of which will come from post-paid landline phones.
This balance means a spectacular growth in company sales of 3,533% in only four years, and everything points towards the firm gaining a positive EBITDA from the second financial year onwards.
The expansion plan will also reflect positively on the reinforcement of personnel, going from the eighty people on their staff at the moment, to the 250 employees who Teleconnect will have placed once all their office are open.
Market Business
The Marbella operator offers voice and Internet services both to companies and individuals, even if the strategic plans of the company include of SMEs until they have gained fifty percent of the business quota.