Neotel's on schedule

ADSL South Africa (Broadband South Africa), 14 January 2007

From February this year large enterprises will be able to make use of alternative international and national circuits or leased lines. This means Neotel (SNO) will offer leased lines on time as planned.

A Neotel spokesman made it clear that ‘Neotel is in the process of rolling out an extensive next-generation network across the country, in preparation for introducing a variety of telecommunications services to different customer segments’ (Neotel on track with roll-out, Senne, 12 January 2007). While Neotel is understandably not keen to disclose the size of its investment specifically in leased lines, we can expect to see a state of the art network able to handle a variety of products and services once completed.

The spokesman also said that Neotel ‘is already in discussions with numerous potential customers regarding its leased line services’ (Neotel on track with roll-out, Senne, 12 January 2007). It seems that winning customers, by means of communicating ‘additional competitive advantages that its services offer to these customers,’ forms an essential part of Neotel’s strategy (Neotel on track with roll-out, Senne, 12 January 2007).

According to Dave Gale, Storm’s Business Development Director, “If Neotel were to put in its services quickly and correctly, and was responsive to faults, it would likely win over loyal [Telkom] customers” (Neotel on track with roll-out, Senne, 12 January 2007). Neotel should take note.

Gale gave more good advice:

• Neotel shouldn’t ‘piggybacking on Telkom’s network in any way’ (Neotel on track with roll-out, Senne, 12 January 2007) – Reason? Competitive advantage will be lost.

• ‘Price may also be a possible selling point for Neotel’ (Neotel on track with roll-out, Senne, 12 January 2007) – Gale made it clear though that Neotel should be careful not to start a price war with Telkom too soon, but only if Tata, its major shareholder, is willing ‘to carry Neotel for a long time before the company becomes profitable’ (Neotel on track with roll-out, Senne, 12 January 2007). Reason? Well, you don’t want to get involved in a price war with the likes of Telkom while you’re only standing on two feet and the ‘cash cow’ on all four. Your cash flow will go down the drain even faster than a bullet can travel through a gun or a hot knife through butter, leaving you helpless to defend yourself and at the mercy of your worst enemy.

Individual consumers and smaller enterprises can expect to see voice and data services designed for them from April this year.

One thing is sure: Neotel is in for a rough ride and will need every inch of your support.

ADSL South Africa (Broadband South Africa) is happy that Neotel is still on schedule because we’re sure thousands of South Africans are still eagerly waiting to be ‘rescued’.