South Africa: Arc Telecoms is born out of the iBurst Business Unit

Telecoms

A number of media reports have appeared in the past few weeks about a new South African telecoms company that was launched by ex-employees of iBurst Business. While the gist of the story that a new business was being launched was correct, a number of key details were speculation as planning work and negotiations were still being finalised.

Several agreements have been concluded, and the story can now be reported on more fully:

The new company is called Arc Telecoms, and the corporate identity is being finalised and the company formally launched within weeks. The company will provide end-to-end voice and data connectivity solutions for the mid-size corporate market.

The company has its roots in iBurst Business, which was a division of iBurst that was incubated to the point where it could become a stand-alone company, in line with the WBS strategy of building and then spinning off service provider companies. iBurst Business as it then stood was spun off in April 2010. At the time negotiations were ongoing as to the final structure and shareholding of the business. The new company was temporarily based at the Blue Label offices while these details were being determined. ARC Telecoms management team, which includes Steve Briggs, Michelle McCann and Paven Chetty, were also in discussions with other potential partners that had approached them, including WOA, the investment company of Alan Knott-Craig Jnr.

On 1 July 2010 an agreement was reached with WOA to become shareholders, with Alan Knott-Craig Jnr taking a non-executive position, leaving the day-to-day running of ARC Telecom to the management team.