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.
Browsing: Telkom
Outgoing Telkom chief financial officer Peter Nelson has offloaded more of the shares he holds in the JSE-listed telecommunications group. Telkom announced late on Friday that Nelson had sold nearly 40 000 shares worth more than R1,3m. He sold the shares last Thursday.
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.
SA’s cellular communications market is about to get a big shake-up as two players, one new, Telkom Mobile, and one reinvigorated, Cell C, get ready to go toe to toe with each other and incumbents MTN and Vodacom. SA’s smallest mobile operator, Cell C, has never had an easy time of it. Launched a decade ago after a particularly troubled birth, the operator has faced an uphill battle against dominant incumbents MTN and Vodacom.
SA’s mobile operators are upset at the growing delays they face in having environmental impact assessments concluded for the construction of new base stations. They say it’s holding back the sector. Cell C CEO Lars Reichelt used a media briefing earlier this week to criticise municipal bureaucrats for the lengthy delays.
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.
Cell C is like a new company. In a presentation to media on Wednesday morning, CEO Lars Reichelt set out a radical new strategy and unveiled a revitalised brand image for the mobile operator. It may still be SA’s smallest cellular network by market share — Telkom hasn’t launched its mobile business yet — but under Reichelt, who was appointed to the job last year, Cell C is fast becoming the market’s feistiest player.
Pay-TV operator Super 5 Media on Tuesday retrenched all of its remaining employees, more than 40 people in all, and is now facing the prospect of liquidation if it isn’t able to pay one of its biggest creditors by the end of the week. TechCentral, which last week broke the news of the problems at the company, has now learnt Super 5 Media is facing a claim of as much as R25m from Rothschild, an international investment advisory company.
Telkom sold its controlling stake in Telkom Media, now Super 5 Media, for just R68m, the JSE-listed telecommunications group’s 2010 annual report has revealed. This means Telkom lost a net R403m from the failed venture. It had loaned the business R471m, which it has now written off, according to the report.
Three years ago, when the Independent Communications Authority of SA (Icasa) licensed three new pay-TV players, most of us couldn’t wait to see something super. Four new companies were given a chance to bring new shows to SA’s TV screens. Most importantly, they were supposed to provide competition to the incumbent monopoly, MultiChoice.