Infrastructure-as-a-Service provider OTEL Telecoms has announced that it has been acquired by digital media services company, MCD Group.
The deal will see MCD take a controlling stake of OTEL’s national network in South Africa.
“The objective is to grow OTELs current dealer distribution channel, apply strategic changes that will see OTEL grow its national fibre network, and add presence in the enterprise, SME and retail environments,” the group said.
MCD has tabled plans to create a more structured distribution channel so that it can expand its enterprise and SME footprint in the country.
OTEL’s CEO, Mohammad Patel will be stepping down from the position, leaving the way for the group’s new GEO, Rad Jankovic, to lead in the new strategy. Patel will continue working at the company in the role of CTO.
The new OTEL Communications will be converging voice, ADSL, VDSL, and LTE into a “one stop shop”, it said.
“The South African telecoms industry will benefit from more competition to the incumbents services thus lowering broadband prices and increasing broadband speed using FTTx,” Jankovic said.
The acquisition will be finalised on 1 March, 2015, the companies said.