Neotel on the block - MTN, Vodacom bids in this week: report

ToxicBunny

Oi! Leave me out of this...
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Interesting turn of events, but not necessarily unexpected.

Not entirely sure I'd be happy with either VC or MTN owning Neotel, unless they can start pushing more into the residential market.
 

siraman

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Jan 13, 2009
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Has this company benefited the avg.consumer(Residential) in the whole of South Africa other than in the metro areas(and questionably so)?:( Therefore, should the avg.consumer already in a vice-like grip from VC and MTN be concerned? On the other hand from a frequency spectrum point of view then things could get interesting.If that is the case,then I hold out hope in terms of LTE deployments considering the latest Telkom price increases(from a competition point of view).

ToxicBunny
Interesting turn of events, but not necessarily unexpected.

Not entirely sure I'd be happy with either VC or MTN owning Neotel, unless they can start pushing more into the residential market.

+1
 

supersunbird

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Vodacom still cares about SA, MTN doesn't give a s..t! Hope MTN doesn't get it.
 

supersunbird

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I wouldn't say Vodacom cares about us... except perhaps to milk us for all it's worth.

Yes, but while trying to give reasonable service. Double opt in for that SMS media crap. Can use your top up airtime to buy data bundles. Normally fast and efficient sign-on or renewal for contracts. MTN on the other hand just doesn't care at all, just want the money while giving bad service.
 

j4ck455

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Neotel would be an attractive buy for companies such as Vodacom and MTN, partly because of its well-established fibre network and its valuable frequency spectrum.

About that spectrum, obviously Neotel has Wimax spectrum and is most likely using Microwave links like every other operator where needed, but isn't the spectrum that Neotel is using for CDMA around 850MHz and modulated to coexist with analogue TV broadcasts in the same range? If MTN or Vodacom buy into Neotel to get access to that low frequency spectrum for LTE, I suspect an LTE network would only be possible once the migration to digital TV broadcasts has happened.

.... they could always buy Neotel and their infrastructure ... O wait CDMA

Neotel probably has (at most) about 60K CDMA customers. I suspect the first thing to go if/when [-]Neotel[/-] Tata is bought out, will be CDMA, and that spectrum will be used for an LTE network.
 

Paul Hjul

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^ my big question is whether a MNO purchasing Neotel will actually get to keep the spectrum if they merge Neotel into their operations -
I was digging around the pairing of spectrum to IECNS licences (and discovered something amusing) and the frequency allocation regulations and ultimately it comes back to the Final Radio Frequency Spectrum Regulations
Regulation 10: Procedures in Respect of Transfers
(1)(a) Except with the approval of the Authority, no licensee must transfer a Radio Spectrum Licence
...
(7) The Authority will not approve the transfer of a spectrum licence
(b) If such transfer will reduce or limit competition

This competition prohibition appears stricter than the requirements for merger approval with the Comp Comm. Meaning that Neotel will have to remain a separate spectrum holder to whoever buys it up as opposed to a merger and then ICASA can have a baby about ownership concentration.
 

Hamish McPanji

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Oct 29, 2009
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Neotel?......what's that?

They really dropped the ball on their consumer marketing and services, and focussed to much on selling to the enterprise.
So have ended up a bit part player like virgin mobile. A sad end to a company we all had hopes for
 

MagicDude4Eva

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What I heard is that it is only Tata's share (which is the majority) which is up for sale. Found that part quite interesting since Tata made such a big investment and Neotel is not growing business (having said that, neither is VC or MTN).

I am more curious about why MTN/VC wants to buy Neotel - it cant be for the customer base or the network infrastructure. Perhaps they figured it's cheaper to buy them then to build another DC? Either way, they all compete for the same services and customers and I doubt that this will result in any savings. Would hate for Neotel to go to VC or MTN - they can't even manage their current DC's and networks.
 
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