Introduced as the second national operator (SNO) in the telecommunications market, Neotel's initial focus was a competitive alternative to Telkom's fixed-line offerings for consumers and small business. However, the operator has failed to deliver, say industry experts.
WWW Strategy MD, Steven Ambrose, argues that the operator's focus has been on the corporate space rather than on the consumer, which can be seen when reviewing Neotel's consumer products versus its corporate and wholesale products.
The operator offers only two converged voice and Internet consumer products and two Internet consumer products. This compares to an extensive range of convergence, mobile and wholesale managed solutions for the enterprise.
“It may be true that we're not yet offering an alternative to Telkom products and services specifically for consumers, because of various reasons – for example, our network is smaller than theirs, because we're still rolling out fibre-optic to various parts of the country, and dare I say we've only been in the market for three years, going for four in August,” retaliates Wandile Zote, executive head of corporate communication at Neotel.
However, Ambrose argues that the SNO was meant to offer SA an alternative to Telkom in the fixed-line space, more specifically in terms of voice and data services. “In this area, Neotel has completely under-delivered.”
Instead, he adds, Neotel is far more competitive with Internet Solutions than Telkom, and now with the new self-provision elements available to all ECNS licences, even more so.
“Neotel is playing the role of a competitive wholesale provider of connectivity and international voice minutes, and leaving the entire domestic and consumer market, including most of the SME space, to Telkom,” he explains.
