Local corporate-focused VOIP business PrimeTel was liquidated last month following the sudden death of its MD, Michael Alter.
According to employee George Flatt, the company was liquidated last month; however, employees were only told about the liquidation just over a week ago. "The company was liquidated on 19 March, and the MD has passed away."
Flatt could not elaborate on the company`s financial position before the liquidation, saying it was a business matter. However, one of PrimeTel`s telecoms suppliers noted it was not faring well.
PrimeTel launched in June last year, with a VOIP solution for the business market. The company seemed to be doing well when it launched its services in KwaZulu-Natal, adding to its Gauteng and Western Cape offices.
The company also released a mobile VOIP solution that sported competitive pricing for traditional mobile voice offerings.
Backed by US venture capital, PrimeTel looked set to take on the local telecoms market dominated by a few large operators.
However, the surface may have been brighter than the balance sheet. PrimeTel employees have reportedly not been paid for two months, although Flatt did not confirm this. Several employees have since been hired by Internet provider Screamer.
According to Flatt, one customer, Panasonic, has decided to venture into the same market and has hired him to provide a similar solution under the popular electronics brand. He says most of PrimeTel`s customers will be migrated to the Panasonic VOIP solution as soon as the end of the week.
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