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O-Tel Telecom has  announced the acquisition of Rheid Telecom, a leading provider of VoIP telephony in South Africa, for an undisclosed sum.

Rheid Communication provides white-labelled VoIP infrastructure to resellers who deploy countrywide. The addition of Rheids’ client base to O-Tel Telecoms’ nationwide Telephone 2.0 network goes a long way to making it the largest white label infrastructure service provider in South Africa.
“Commercial VoIP is the fastest growing technology in the telecommunications sector,” says  Mohammad Patel, CEO of  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 distributors and LCR providers who have sizeable databases, as O-Tel aims to retain its market leadership in its 1Cloud Hosted PBX.“
O-Tel Telecom will offer Rheid clients advanced VoIP services such 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, comments: “Rheid  Communications is an amalgamation of design, marketing and IT based services, which include web hosting, web design and VoIP.  We need to focus our core business, which is design and web based services. Therefore our strategy moving forward no longer includes providing VoIP. To be effective for our customers we have decided to streamline our business.”
 With the acquisition, Rheid Communication becomes a wholly-owned subsidiary of O-Tel Telecom and will migrate all its’ switch infrastructure into O-Tel’s data centre.
The official move date has been set for 25 March.