It’s Friday again and that means another episode of SA’s business technology podcast, TalkCentral. This week, your hosts Duncan McLeod and Candice Jones delve into the ongoing drama at the department of communications, where fired communications department director-general Mamodupi Mohlala has been reinstated — at least for now — by minister Siphiwe Nyanda.
Browsing: Neotel
Neotel is playing down the importance of the retail consumer market to its business, saying its main focus into the future will be on the corporate and wholesale markets. This is after the company signed up fewer than 50 000 retail subscribers. CEO Ajay Pandey says Neotel’s ideal revenue mix is 10% from its retail consumer business, 30% from the wholesale business and 60% from the enterprise space. It does not plan to exit the retail market.
Telkom has resumed its high-profile anti-Neotel taunts on Gauteng billboards, this time erecting a giant sign just metres in front of its rival’s new head office in Midrand, north of Johannesburg. In a clear reference to Neotel’s orange corporate branding, the Telkom hoarding says: “Remember, exercise caution when you see orange.”
South Africans once regarded Neotel as having the real potential to offer a competitive alternative to Telkom in residential services. But as the company releases an uninspired prepaid retail offering this month, that dream already appears to have faded.
Telecommunications company Neotel has unveiled its first prepaid offering, announcing on Wednesday that it would charge 20c/minute for ad-hoc prepaid data and 50c/minute for calls to Telkom and other Neotel numbers. Neotel is “soft launching” its first prepaid product this month in the hope of improving its poor performance in the retail consumer market, where it has signed up fewer than 50 000 paying customers.
Bandwidth on the East Africa Submarine System (Eassy), a new, 10 000km-long submarine fibre-optic cable on Africa’s east coast, is now available from Neotel and MTN, the two telecommunications operators announced at a press conference on Thursday. At the same time, the design capacity of the system has almost been trebled, going from 1,4Tbit/s to 3,8Tbit/s, making it the fastest cable system serving the African continent. However, only 60Gbit/s on that capacity has been “lit up” so far.
Neotel wants to work with small wireless Internet service providers as it struggles to roll out connectivity to rural and underserved parts of the country. Mike Silber, policy and special projects specialist at Neotel, says as one of the few telecommunications network licensees with community service obligations the company is mandated to deploy network connectivity to rural schools and clinics.
As Neotel gears up to launch its first prepaid consumer products in the next few weeks, the telecommunications operator has announced it has concluded a deal with JSE-listed Blue Label Telecoms to take the offerings to market. Blue Label will offer Neotel’s prepaid products through its retail points of presence across the country. The products are expected to be launched next month.
The fixed-line telecommunications market in SA is set for a turnaround, in part because of declining mobile termination rates, says technology research and advisory firm BMI-TechKnowledge. A new report, SA Voice Services Market Forecasts and Analysis, shows that between 2009 to 2014, fixed and mobile revenues are forecast to grow at compound annual growth rates of 3% and 7% respectively.
SA will soon be awash in cheap international bandwidth. The challenge is getting that bandwidth into the hands of consumers and companies. So, news this week of the launch of a new fibre operator is encouraging. Eassy. Wacs. Ace. Main One. These are the names of new cable systems that are either in the works or already under construction. Together with the Seacom cable in the east and the Sat-3 system in the west, they promise a flood of cheap international bandwidth.