Neotel ready to compete

ADSL South Africa (Broadband South Africa), 24 June 2007

Neotel said that they are ready to compete and that their planning provides for ‘significant price re-alignments’. This comes after Telkom recently announced ADSL price reductions that will come into effect on the 1st of August this year.

What will Neotel bring to the table now that Telkom and others like Vodacom have responded with notable broadband (ADSL) price reductions?

According to Neotel: “Neotel aims to ensure that customers get better value in the services that we provide them, and we intend to deliver such value through world-class customer service, innovative products & packages, as well as competitive pricing” (Neotel plans ‘significant price re-alignments,’ MyBroadband, 18 June 2007).

In other words, Neotel will bring ‘world-class customer service, innovative products & packages, as well as competitive pricing’ to the table.

How big are the price cuts we can expect to come from Neotel’s side?

Well, while Neotel is not specific about their broadband pricing you can expect to see huge savings coming our way because of:

• Planned price re-alignments – ‘Neotel said that their planning provides for significant price re-alignments’ (Neotel plans ‘significant price re-alignments,’ MyBroadband, 18 June 2007). In other words, we doubt Neotel will fail to provide for ‘significant price re-alignments’ because failure in this regard will surely not sit well with consumers.

• Pandey’s predictions - ‘Neotel MD Ajay Pandey a while back predicted that telecoms prices would drop to a third of their level. According to Neotel the current market dynamic is merely a reflection of this expectation’ (Neotel plans ‘significant price re-alignments,’ MyBroadband, 18 June 2007). In other words, you can expect to see broadband prices (among other telecoms prices) to come down quite a bit, because we’re sure Pandey wouldn’t make such predictions if it was an impossibility.

• More competitive telecoms market – It’s no secret that things are heating up in South Africa’s telecoms environment, especially now that the likes of Vodacom is ‘...eager to become a fully fledged telecoms provider’ (Neotel plans ‘significant price re-alignments,’ MyBroadband, 18 June 2007).

In other words, we’re sure Neotel will introduce broadband pricing that’s in step with the downward price trend in the market, because AGAIN failure to do this will surely not sit well with consumers.

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