Bob van Dijk has R65 Billion in Cash. The Boss of Prosus is Hunting for Buys

There is no doubt that Bob van Dijk, the CEO of Prosus, wants to make a big acquisition. The Dutch arm of South African...

Latest Posts

Running With Scissors: What The Innovators Do Best

The world of managed services has seen a radical revolution from the old ways of working to the new to support dramatic and iterative...

When You Can Pre-Order The iPhone 12 Mini, iPhone Pro Max at Vodacom

Vodacom announced on Wednesday that pre-orders for new Apple iPhone 12 family, including iPhone 12 Pro, iPhone 12 Pro Max, iPhone 12, and iPhone...

Telkom Launches A WhatsApp-Based Digital Wallet, Telkom Pay

Telkom today announced the launch of a digital wallet officially dubbed Telkom Pay Digital Wallet or Telkom Pay. The company said Telkom Pay allows users...

A Laptop And A Sea View. What’s Behind The Semigration Trend?

By Andrea Tucker South Africans are increasingly looking to greener pastures within our country’s borders in search of a better quality of life away from...

Vox’s strategy behind buying Frogfoot Networks

 

By Gugu Lourie

Vox Telecom announced on Tuesday that it has acquired Frogfoot Networks, a South African-based Internet services company, for an undisclosed amount.

The deal is the second to be concluded by the company, which kick-started four months ago a five-year plan growth strategy.

Last month, Vox Telecom’s acquired Wishlist, shoring up Microsoft consulting and integration capabilities, for an undisclosed amount.

Through Frogfoot Networks’ acquisitions Vox Telecom will gain a firm footing in the growing market for the Fibre-to-the-Business (FTTB) and Fibre-to-the-Home.

Furthermore, the company sees this deal fast tracking its own fibre strategy by leveraging the existing skills, processes and installed fibre network of Frogfoot Networks.

Vox Telecom CEO Jacques du Toit, is excited about the acquisition of Frogfoot Networks and trusts the new buy will enable the company to roll out its quality fibre services quicker.

He said the real benefit of buying Frogfoot Networks was the fact that the business has ‘momentum, the skills, track record and time to market’ in the fibre space.

“Frogfoot have been able to speed up our deployment of fibre,” said Du Toit in an exclusive interview with TechFinancials.co.za, adding that the company decided to buy this firm because it shares Vox Telecom’s principles on providing quality services and products including network infrastructure.

Vox Telecom FTTH is currently available in Parkhurst, Greenside, Parktown North, Killarney, Riviera, Waterfall, Craighall, Dunkeld, Craighall Park, Atholl, Elton Hill, Winston Ridge and Constantia.  It will be coming soon to all Telkom fibre suburbs.

Last month, the company launched a first to market uncapped voice package that aims to keep South Africa talking.  Available to customers in suburbs where Vox Telecom is rolling out FFTH, uncapped voice package enables unlimited calls to mobile, national and local fixed line and select international destinations.

Du Toit is optimistic that in the next few weeks Vox Telecom is likely to provide a similar service to the business market

However, Vox Telecom acquisition of Frogfoot Networks and speedy entry into FTTH and FTTH market may pit the company against bigger industry players – such as Vodacom, MTN and Telkom – with big pockets seeking to diversify their revenue streams.

Vox Telecom Fibre
Vox Telecom Fibre

But Du Toit believes Vox Telecom strategy to target precinct with its fibre rather deploying the infrastructure everywhere would create a niche and profitable market for the company.

Vox Telecom is not planning to be a Dark Fibre Africa, a terrestrial fibre operator, or a Vodacom even an MTN for that matter.

Furthermore, the acquisition of Frogfoot Networks proves that Vox Telecom is aggressively pursuing its differentiation strategy and is committed to entrenching itself as an end-to-end technology partner for its customers.

The acquisition of Frogfoot Networks is the fifth in just over a year.

Last October, Vox Telecom bought Two IT and Computer Initiatives, which provide specialist consulting in Microsoft Dynamics and business applications.

Both companies will be merged to create a new division.

The shareholders who decided not to sell the company last year might be pleased with Vox Telecoms’ performance so far, as the firm continues to grow organically and via acquisitions. It is on the road to becoming a fully-fledged integrated technology partner.

Vox Telecom’s CEO Jacques Du Toit
Vox Telecom’s CEO Jacques Du Toit

These shareholders, with deep enough pockets to finance Vox Telecom’s corporate activity, include Investec, Lereko Metier Capital and RMB.

With the backing of its shareholders, Vox Telecom is still on the lookout for more acquisition targets to bolster its business and Du Toit said the firm continues to engage in talks with a number of entities with a view of buying them.

He wouldn’t be drawn into commenting on how much has the unlisted company set aside for further buys and which companies it was eyeing to buy.

But earlier this year, he disclosed that  Vox telecom was also looking at acquisition opportunities in automation, cloud services, digital communications and managed services space.

Vox Telecom is one of the only remaining big telecoms operators and internet service providers in the country, which has not been acquired by bigger operators and seems to be surviving the consolidation phase in the ICT market.

Vox Telecom – which was founded in 1998 – offers alternative voice solutions, data access and ISP services, cutting-edge cloud services, a variety of PBX and video conferencing services, telephony management systems, faxing and text messaging applications.

Du Toit is confident of doubling the size of Vox Telecom in the next five years, or even earlier.

Indications are that Vox Telecom is set to compete aggressively in the market and planning to provide quality services and infrastructure to its customers.

As a small player it could end up muscling its way to lucrative contracts in its niche markets and this may upset the bigger players. This is definitely a company to watch in the next few years.

“The fact that Vox Telecom is becoming a fully integrated technology partner is allowing our customers to differentiate themselves in their own marketplace,” said Du Toit.

 

 

 

 

Latest Posts

Running With Scissors: What The Innovators Do Best

The world of managed services has seen a radical revolution from the old ways of working to the new to support dramatic and iterative...

When You Can Pre-Order The iPhone 12 Mini, iPhone Pro Max at Vodacom

Vodacom announced on Wednesday that pre-orders for new Apple iPhone 12 family, including iPhone 12 Pro, iPhone 12 Pro Max, iPhone 12, and iPhone...

Telkom Launches A WhatsApp-Based Digital Wallet, Telkom Pay

Telkom today announced the launch of a digital wallet officially dubbed Telkom Pay Digital Wallet or Telkom Pay. The company said Telkom Pay allows users...

A Laptop And A Sea View. What’s Behind The Semigration Trend?

By Andrea Tucker South Africans are increasingly looking to greener pastures within our country’s borders in search of a better quality of life away from...

Don't Miss

Capitec Introduces All-In-One ‘Scan to Pay’ (QR code) Functionality

Capitec, South Africa’s largest digital bank, has launched its QR code payment functionality in their new app. The ‘Scan to Pay’ offering can be...

Vodacom to Halve Its Carbon Footprint by 2025

Vodacom - which generates less than 2 metric tons of carbon per terabyte of data a year - says it plans to halve its...

Takealot.com, M-Pesa and Jumia Join BCG’s Top 100 Tech Challengers

Safaricom’s mobile money service M-Pesa, Nigeria’s e-commerce sites Jumia and South Africa’s Takealot.com are picked as 100 tech challengers by global management firm Boston...

MTN Increases Stake in Mobile Micro-Insurance Firm aYo

MTN, Africa’s largest mobile phone group, has increased its shareholding in mobile-micro-insurance firm aYo through acquisition of additional shares. In 2017, South Africa’s third-biggest insurer Momentum...

SA Taxi Teases the Idea of Creating a Minibus Taxi Bank

Transaction Capital, the owners of SA Taxi, on Tuesday gave us an idea about how the JSE-listed group wants to bring banking to the...
[tdn_block_newsletter_subscribe title_text=”Stay in touch” description=”VG8gYmUgdXBkYXRlZCB3aXRoIGFsbCB0aGUgbGF0ZXN0IG5ld3MsIG9mZmVycyBhbmQgc3BlY2lhbCBhbm5vdW5jZW1lbnRzLg==” input_placeholder=”Email address” tds_newsletter2-image=”5″ tds_newsletter2-image_bg_color=”#c3ecff” tds_newsletter3-input_bar_display=”row” tds_newsletter4-image=”6″ tds_newsletter4-image_bg_color=”#fffbcf” tds_newsletter4-btn_bg_color=”#f3b700″ tds_newsletter4-check_accent=”#f3b700″ tds_newsletter5-tdicon=”tdc-font-fa tdc-font-fa-envelope-o” tds_newsletter5-btn_bg_color=”#000000″ tds_newsletter5-btn_bg_color_hover=”#4db2ec” tds_newsletter5-check_accent=”#000000″ tds_newsletter6-input_bar_display=”row” tds_newsletter6-btn_bg_color=”#da1414″ tds_newsletter6-check_accent=”#da1414″ tds_newsletter7-image=”7″ tds_newsletter7-btn_bg_color=”#1c69ad” tds_newsletter7-check_accent=”#1c69ad” tds_newsletter7-f_title_font_size=”20″ tds_newsletter7-f_title_font_line_height=”28px” tds_newsletter8-input_bar_display=”row” tds_newsletter8-btn_bg_color=”#00649e” tds_newsletter8-btn_bg_color_hover=”#21709e” tds_newsletter8-check_accent=”#00649e” embedded_form_code=”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” descr_space=”eyJhbGwiOiIxNSIsImxhbmRzY2FwZSI6IjE1In0=” tds_newsletter=”tds_newsletter3″ tds_newsletter3-all_border_width=”0″ btn_text=”Sign up” tds_newsletter3-btn_bg_color=”#ea1717″ tds_newsletter3-btn_bg_color_hover=”#000000″ tds_newsletter3-btn_border_size=”0″ tdc_css=”eyJhbGwiOnsibWFyZ2luLWJvdHRvbSI6IjAiLCJiYWNrZ3JvdW5kLWNvbG9yIjoiI2E3ZTBlNSIsImRpc3BsYXkiOiIifSwicG9ydHJhaXQiOnsiZGlzcGxheSI6IiJ9LCJwb3J0cmFpdF9tYXhfd2lkdGgiOjEwMTgsInBvcnRyYWl0X21pbl93aWR0aCI6NzY4fQ==” tds_newsletter3-input_border_size=”0″ tds_newsletter3-f_title_font_family=”445″ tds_newsletter3-f_title_font_transform=”uppercase” tds_newsletter3-f_descr_font_family=”394″ tds_newsletter3-f_descr_font_size=”eyJhbGwiOiIxMiIsInBvcnRyYWl0IjoiMTEifQ==” tds_newsletter3-f_descr_font_line_height=”eyJhbGwiOiIxLjYiLCJwb3J0cmFpdCI6IjEuNCJ9″ tds_newsletter3-title_color=”#000000″ tds_newsletter3-description_color=”#000000″ tds_newsletter3-f_title_font_weight=”600″ tds_newsletter3-f_title_font_size=”eyJhbGwiOiIyMCIsImxhbmRzY2FwZSI6IjE4IiwicG9ydHJhaXQiOiIxNiJ9″ tds_newsletter3-f_input_font_family=”394″ tds_newsletter3-f_btn_font_family=”” tds_newsletter3-f_btn_font_transform=”uppercase” tds_newsletter3-f_title_font_line_height=”1″ title_space=”eyJsYW5kc2NhcGUiOiIxMCJ9″]