Neotel in trouble

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steve-rsa

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I heard on 702 that Neotel is in serious financial trouble with a R1.2bn loss. Related to their being no LLU unbundling, or just beacuse they have no market penetratio due to not offering competitive enough pricing?
 
Well, they Tata'ed my chance against Telkom, and failed miserably. All those millions spent on infrastructure was good for short term job creation it seems. Neotel needs a prince in shining armour to rescue its strategy. I hope they find their feet and bounce back with a vengeance ala Cell C style. As for their failure in gaining market share, all fingers must point to the CEO and/or board, as he/they will be answerable to the shareholders.
 
That's what they get for effectively ignoring the consumer & focusing exclusively on business! They had the opportunity to change the internet in SA due to their relationship with Seacom, yet they chose not to be competitive and lost that advantage. Too bad for chasing short-term profits vs. growing their long-term strategy.

When they just started out I recommended them as an alternative to Telkom to a friend who just started out his legal practice. Two months later the friend chucked their system out due to not performing & endless support issues. Sympathies? Nah.
 
We just need NeoFail to hold on before either another company buys it and rebuilds it or they lose their licence and a new Telcom company tries it. We still need to have a thorn in Telkom's ass, even if it's not by much, it's better than nothing.

All seem unlikely but you never know...
 
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