O-Tel Telecom announces acquisition of Rheid's communication division

O-Tel Telecom today announced the acquisition of Rheid Telecom, a leading provider of VoIP (Voice over Internet Protocol) telephony in South Africa, for an undisclosed sum.

Rheid Communication provides white-labelled VOIP infrastructure to resellers, who in turn deploy to the public countrywide. With the addition of Rheid's client base, O-Tel Telecoms' nationwide Telephone 2.0 network will reaffirm its intention to be the largest white label infrastructure service provider in SA.

“Commercial VOIP is the fastest growing research in the telecommunications sector,” said Mohammad Patel, CEO at O-Tel Telecom.

“Acquisitions are needed in this environment to ensure leadership in the field. Part of our strategy is additional full acquisitions or partial stake shareholding of PBX (Private -Automatic- Branch Exchange) distributors and LCR providers who have sizeable databases, as O-Tel aims to retain its market leadership in its 1Cloud Hosted PBX (Private -Automatic- Branch Exchange).”

O-Tel Telecom will deliver to Rheid customers advanced VOIP services, just as voice backhaul via O-Tel's national private network, wireless access to its switches, geographic telephone numbers, lower call rates, automated billing services, and 1Cloud Hosted PBX.

Wendy Taylor, director at Rheid Communications, explains: “Rheid Communications is an amalgamation of design, marketing and IT-based services, which include Web hosting, Web design and VOIP. We need to focus on our core business, which is design and Web-based services. In a nutshell, our strategy moving forward no longer includes providing VOIP. To be effective for our clients, we have decided to streamline our business.”

With this acquisition, Rheid Communication becomes a wholly owned subsidiary of O-Tel Telecom, and will be moving its entire switch infrastructure into O-Tel's Data Centre.

The market begins to adopt VOIP

“As the market begins to adopt VOIP and 1Cloud's Hosted PBX as their mainstream in telephony, the timing of this move could not have been better.” adds Patel.

“During the business relationship with our customers will continue while the six months transition phase, we look forward to extending our customers reach into a vast array of additional services where profitability can increase.”

O-Tel is South Africa's fastest growing digital communications company, with an established and stable VOIP infrastructure. O-Tel provides private label services just as SIP trunking and hosted PBX to WISPs, ISPs, IT service providers, PBX installers, and enterprises. O-Tel is proud to be a licensed national telecom service provider in South Africa. For information on O-Tel's products and services, please visit www.otelafrica.com. For media inquiries, please contact: O-Tel Press Officer, 591-0010 or press@otelafrica.com.

Rheid Communications was founded in 2004. Fast becoming a leading VOIP provider since inception, Rheid nevertheless has clientele countrywide, making it one of the few providers achieving such feat. For information on Rheid Communications, please visit www.rheid.com. For comments, please contact Stephen Smit on 250-5180 or Stephen@rheid.com.