Satellite company and M2M specialist Orbcomm is to expand its business in Africa after winning an important deal with South Africa’s Cartrack, which provides fleet-management and vehicle-tracking services across the continent.
Under the deal, Cartrack (Johannesburg, South Africa) is set to become Orbcomm’s first value-added reseller in the African transportation sector, distributing Orbcomm’s fleet-management solution through its growing brand and dealer network.
The arrangement will see Cartrack integrate Orbcomm’s satellite communications service into its own telematics solution to improve the service it offers to African customers, many of which operate in remote areas not covered by GSM networks.
“Orbcomm’s recent installation of key ground infrastructure in South Africa will provide even greater network availability and geographic coverage for the sub-Saharan countries,” said Christian Allred, Orbcomm’s senior vice president of international business.
Cartrack says it was attracted to Orbcomm (Rochelle Park, NJ, USA) because of the geographical reach it offers with its satellite network.
“Cartrack’s vehicle telematics services require a high standard of performance, quality and geographic reach, and Orbcomm meets this need,” said John Edmeston, Cartrack’s managing director. “We are very pleased with the positive response from our dealer network.”
Speaking to M2M Zone at the recent CTIA Wireless Show held in Las Vegas, Orbcomm said it was in the midst of negotiating partnerships that would help it break into new international markets.
Last quarter, the company reported a 21.2% increase in revenues, to $13.89 million, with customer numbers rising to 777,000 from 689,000 a year earlier.
Takeover activity was largely responsible for a 54% drop in net income, to $1.09 million, but is helping Orbcomm to expand its portfolio of services and offset pricing pressure in its connectivity business.