Former Internet Solutions (IS) CEO Angus MacRobert has bought into a few more local Internet and telecoms businesses, with an eye to consolidate.
In a move that surprised the industry, MacRobert quit SA's largest Internet service provider last year, after leading IS for eight years. Over the last few months, he has made two investments and plans to make several more.
“I want to put some of these companies together and provide consolidated offerings to the market,” he says.
MacRobert's most recent investment was in Axxess DSL, one of the many companies waging a broadband price war. The Port Elizabeth-based business claims to have roughly 50 000 ADSL subscribers in the consumer market. MacRobert says he hopes to expand it into the SME space and later into big business.
“Right now is the best possible time for young, agile companies to claim their stake in the local telecommunications space. As a market, we are finally feeling the liberating effects of deregulation ‑ more international bandwidth than ever before with more coming down the line, a competitive space that sees everyone fighting it out to give the best value, and a client base that is willing to try new providers,” says MacRobert.
A few weeks ago, MacRobert took a stake in a start-up, three6five, founded by other ex-IS staffers, Jeff Fletcher, George Stylianou and Mauritz Lewies. The business has been primarily focused on consulting and has made several strides into the African market.
“Some of the businesses will have to remain independent and I will obviously respect that,” he says. However, his primary aim is to produce a niche opportunity from the investments he has made.
MacRobert would not disclose the values of the investments, or the terms of the deals. “The timing couldn't be better and there is plenty of room for niche players working with new strategies,” he notes.
Good idea
Frost & Sullivan ICT industry analyst Spiwe Chireka applauds MacRobert's smart move in tackling this industry.
She says this is one of the remaining areas in the Internet and telecoms industry that still needs to be tapped. If MacRobert can create a differentiating factor to the businesses he buys into, then it will be successful, she notes.
Chireka says he will be up against some tough competition, with MTN attempting to position itself in the space with consolidated solutions, both in hosted services and data access.
However, she says even with tough competition, MacRobert's plan still has a part to play.
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