Neotel is stepping up its focus on the retail consumer market with the launch on Monday of a new handset that, at first glance, looks remarkably like a mobile phone.

The R399 device, made by China’s ZTE, uses Neotel’s “fixed-wireless” code division multiple access (CDMA) network. Though it resembles a cellphone, it offers only limited mobility.

“Unlike other home phones, Neotel’s cordless phone is not restricted by residential parameters and can be used wherever coverage exists within the same geographical calling area,” the company says.

Neotel, controlled by Indian’s Tata Communications, has struggled to make headway in the retail consumer space, signing up just 50 000 subscribers. New CEO Sunil Joshi has promised the company will increase its focus on this segment, predicting it will increase its customer base by 50% in the current financial year, which ends in March 2012.

Neotel is continuing to invest its CDMA network to “deepen and extend” its coverage, according to Joshi. He recently indicated the company would roll out new products “in the near future, both in terms of capacity, throughput and end-user devices”.

The operator has budgeted about R500m for capital expenditure this financial year, some of which will be directed to its consumer offerings.

Neotel’s new, battery-powered phone is available on its NeoConnect Lite voice contracts (either R99/month or R199/month) and its NeoConnect Lite prepaid packages. It offers free off-peak Neotel-to-Neotel calls and rates to other networks that the company claims are the lowest in the industry. — Staff reporter, TechCentral