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Is it wrong to assume that Neotel is fighting an uphill battle? Not at all, although we must not make the mistake to jump to conclusions… The Boer War serves as a perfect example to those who underestimate the ability of the ‘underdogs’ to come out fighting and winning in the process. Remember: England only ‘won’ the war after dirty tactics such as the wholesale slaughtering of women and children were employed. Despite the fact that the Boers were the ones that were forced to surrender, it’s England that lost an empire at the end of the day because they jumped to conclusions. ‘With more competitively priced offerings from Telkom and new players promising significant reductions on national, international and cellular phone calls, Neotel is making it increasingly difficult for itself to take the market by storm. Its initial focus may well be on the more lucrative corporate market, but it will have to target the residential and SMME market sooner rather than later if it does not want to be seen as just another first tier ISP, similar to Internet Solutions or Verizon Business’ (Neotel sets high-speed Internet launch date of September, MyBroadband, 31 July 2007). In other words, Neotel will fight an increasingly uphill battle if they don’t enter the residential market as soon as possible. ‘Apart from sitting with a license which many local operators would love to have, Neotel has the advantage of owning its own infrastructure, having been allocated both CDMA and WiMax spectrum, and having a strong international partner in VSNL. But until businesses and consumers start to directly benefit from these advantages – both in price and service delivery – it has reneged on its promise of bringing effective competition to the telecoms arena in SA and ending Telkom’s monopoly in the fixed line space (Neotel sets high-speed Internet launch date of September, MyBroadband, 31 July 2007). In other words, Neotel has a lot going for them such as a strong international partner, own infrastructure, etc but that will not be enough to save them from defeat should they fail to deliver on promises made. ADSL South Africa (Broadband South Africa) wishes Neotel the best of luck in launching residential services as soon as possible and on time as promised. It seems that failure to do this might result in overall mission failure.
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