Why are we still waiting?

ADSL South Africa (Broadband South Africa), 27 March 2007

Neotel’s management must be asking the above question, since the company is still waiting on ICASA to allocate the 800MHz frequency band that’s needed to successfully enter the residential market.
 
What seems to be the problem since Neotel already obtained the frequency spectrum required?
 
True but ‘…the 800MHz frequency band to ensure that consumers benefited optimally from the technologies,’ is still needed (Icasa yet to allocate 800MHZ spectrum to Neotel, Mochiko, Business Report, 26 March 2007). Also, ‘the spectrum will help Neotel to swiftly roll out wireless voice services to individual customers, thus circumventing Telkom's infrastructure (Icasa yet to allocate 800MHZ spectrum to Neotel, Mochiko, Business Report, 26 March 2007).
 
In other words, Neotel will be stuck in first gear if the 800MHz frequency is not allocated in time.
 
Didn’t ICASA comment as to when the 800MHz frequency band would be assigned to Neotel?
 
No. They only acknowledge that they had received the relevant application from Neotel.
 
When can we expect to see Neotel’s roll out of voice services?
 
Very soon. ‘Neotel plans to roll out voice services to the corporate market within the next three months and to residential customers from June’ (Icasa yet to allocate 800MHZ spectrum to Neotel, Mochiko, Business Report, 26 March 2007).
 
In other words, residential customers will have to place plans to hang up on Telkom, ‘on hold’ for more or less the next 3 months.
 
Why would Neotel be interested in ‘…circumventing Telkom's infrastructure’?
 
Neotel don’t want to be stuck in a situation where Telkom calls all the shots.
 
‘Telkom controls telephone lines in residential areas and offices, and the government is yet to formulate a policy that will force the incumbent to lease the lines to other operators’ (Icasa yet to allocate 800MHZ spectrum to Neotel, Mochiko, Business Report, 26 March 2007).
 
In other words, Telkom will be able to effectively stop other operators from leasing their lines, while the relevant authorities that can stop them are preparing themselves for a deep winter sleep. This is the reason why Neotel needs the 800MHz frequency band fast.
 
Any more news on Neotel’s preparations and what they will offer?
 
Yes. A short list of preparations and what they will offer:

  • Choice  – ‘Neotel users would have a choice of voice only or internet only, as well as bundled voice and high-speed internet services’ (Icasa yet to allocate 800MHZ spectrum to Neotel, Mochiko, Business Report, 26 March 2007).
  • Geographic Number Portability (GNP) – ‘The group's residential rollout will be boosted by the implementation of geographic number portability (GNP), which will allow fixed-line customers to keep their numbers while switching to other operators’ (Icasa yet to allocate 800MHZ spectrum to Neotel, Mochiko, Business Report, 26 March 2007).
  • Fibre optic cables – Neotel ‘…is laying its own fibre optic cables in major cities to complement the 1 300km cable it bought from Transnet’ (Icasa yet to allocate 800MHZ spectrum to Neotel, Mochiko, Business Report, 26 March 2007.

ADSL South Africa (Broadband South Africa) hopes ICASA allocates the 800MHz frequency band to Neotel in time.

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