Vox not in take-over discussions
Vox Telecom joint-CEO, Douglas Reed says the group’s medium-term strategies are internally focused right now with no “serious negotiations” currently ongoing with any major mobile operators.
It follows recent comment from Telkom Business managing director, Brian Armstrong, who pointed to eventual telecoms convergence in the local market.
Armstrong highlighted a dynamic telecoms market in SA within the next five years, with a proliferation of players.
“I think we are a good few years away from the consolidation phase, but I do think that in getting there, you will see M&A as people try to supplement the missing parts. Everybody is trying to build the puzzle; the likes of mobile operators do not have a fixed-line offering. It would make sense for one of them to buy a Vox (Telecoms), maybe,” Armstrong said.
JSE-listed Vox is an independent telecoms operator, providing voice and data services to the Southern African market.
“We agree that the telco sector is extremely fluid and in a state of flux because the driving forces are dynamic and exponential in nature; and when one takes the time value opportunity costs into account it does make sense to acquire annuity businesses,” said Reed.
The company chief said that managed services and unified communications are the strong growth drivers and it is in this space that Vox makes strategic acquisitions and starts new initiatives.
“We have been approached on a regular basis because of our independence and our large customer base, however, Vox Telecom’s medium-term strategies are internally focused right now and we are not in any serious negotiations with any operators. Our focus at the moment is on maintaining our independence, converting obsolete services with new offerings, consolidating our group companies and ensuring we continue to organically grow our market share,” he said.
According to Vox, M&A activities in the telco space will continue as usual where it makes sense for a telco to acquire a building block rather than to start one up, “we can’t see an end anytime soon,” Reed concluded.
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