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Though it anticipates an innovative offering from the new operator in order to differentiate itself, Telkom doesn't believe Neotel will be able to compete with it on price.
For people who doubt Neotel’s ability to compete with Telkom on rands and cents, Angus Hay, Neotel’s Executive Head of Strategy, pointed out that the company has already taken some business away from Telkom in the cutthroat arena of international voice and IP transit.
According to Hay, it basically comes down to pricing in this arena, and Neotel’s ability to take Telkom on in this field sends a clear message about their willingness to win business through competitive pricing.
So far, Telkom says it has seen "very little" of Neotel in the marketplace since the launch of its wholesale international services. However, it concedes to having lost one or two competitive bids on a price-specific basis - though not on an outsourced solution basis, says Beelders.
Personally I would pay anything at this stage just to have a damned telephone line. I don't even care who provides it. I have now been waiting 10 months and 17 days for installation from telkom. 6 March I can have my 1 year anniversary of non-delivery!
Beelders says Telkom has a number of other bundled offerings planned and will release those when needed in response to Neotel's offerings.
with Rip-OFF packages to make the public think they getting cheaper prices.
R145 for all inclusive landline calls for evening and weekends is not that bad, and people are already saving, which is good and that includes line rental.
The R300 option is a bit steep though.
Check the day time call rates - they were more expensive than normal rates the last time I checked.
Elaborate?
During normal Hours:
For a normal phone line, a local call is charged at 0,00634c/sec = 38c /minute minimum charge 59.4c.
http://www.telkom.co.za/common/pricelist/prices/local/custtomer_to_automatic_exh.html
Closer 1 charges 68c per minute with a minimum call charge of 68c.
http://www.telkom.co.za/athome/services/closer/optionone.html
Similar for Closer 2
Really, if Telkom believes Closer is value for money, they are hopeless.
What is it with Telkom trying to market all their overpriced services s "value for money"? Sure, countries like China have cheaper telecoms costs, but claiming it's because of a "massive economy" is plain idiotic.
Exactly how massive does South Africa's economy need to grow before your garnish R10 off your prices, Telkom? SA is the biggest economy on the continent, yet some smaller economies in other countries, offer cheaper telecoms than you do??
An interesting choice of words "sell reality to customers" - I suppose we should all be very happy that Telkodemonopolies has now patented reality and is selling it at an unspecified exorbitant price - and there is a cost associated with having to wait indefinitely for an ADSL line - either an existing one to be fixed or a new one to be installed...However, Beelders says Telkom is moving in the right direction. And its new strategy is to sell reality to customers - in other words, it will tell the truth about how long it expects to take to fulfil an ADSL order. Though current rollout times aren't acceptable, Telkom has to be realistic about the current situation and is doing much to rectify that going forward.