Neotel’s Plans to Take 15% of Telkom’s Market Share

ADSL South Africa (Broadband South Africa), 28 April 2011

While Neotel reduces their capital expenditure, the company is determined to make a profit soon. However, this is at the expense of lower investments in infrastructure, which will cost the consumer. This is bound to hamper the company from becoming a fully-fledged second national operator. According to analysts, the company also will not reach its market share target of 15% as set at the launch of the company four years ago.

Sunil Joshi, Neotel's new MD and CEO said that the company would in fact be profitable before the financial year-end in 2012. They also have plans on how to reach the next two stages of profitability and making a net profit. Vinod Kumar, Tata Communications CEO and MD would not disclose the timelines by which Neotel hopes to reach these targets.

The company reported a R1,1 billion loss in its annual report for the 2010 financial year. This is almost 50% higher than the R739 million loss reported in the 2009 report. The company sustained a R320 million loss in 2008.

<< Previous    [1]  2  3    Next >>