Neotel: smaller caps on cards

BrokenLink

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Just saw this, think it might be of interest to a lot of people considering the reaction on here after the Neoflex pricing....


Johannesburg - SA's second telecommunications network operator Neotel says it will introduce lower bandwidth caps and price points for its multi-user broadband offering if that's what consumers are looking for.

This comes after the company on Monday unveiled NeoFlex Data, the provider's first multi-user broadband offering. A package with a bandwidth cap of 10 gigabytes is available for R699 a month, while 15 gigabytes cost R899 per month. This has raised concerns from home users who would like to see lower price-points.

Mukul Sharma, head of Neotel's consumer business, says that sufficient demand for lower caps will result in Neotel rethinking its offerings.

"There is clearly a demand in the market for smaller caps. Neotel will take all feedback into consideration and provide services accordingly," he says.

Sharma explains that the initial NeoFlex Data packages were formulated based on focus group feedback from potential customers.

"The target market identified for NeoFlex Data is high-end consumers with multiple computers in their houses, or small businesses with 10 to 20 employees," he says.

"Before finalising the product we ran some focus groups with consumers and businesses. This feedback revealed a demand for bandwidth caps of at least 10 gigabytes."

NeoConnect Prime is an alternative offering from Neotel for users looking for a solution from the SNO at a lower price-point, but this is a very different solution.

Prime focuses on single users and combines telephony with internet connectivity. The wireless standard used by NeoConnect Prime also cannot support both data and voice traffic simultaneously, so users aren't able to speak on the phone while on the internet.

"NeoFlex Data uses a newer version of the CDMA wireless standard than Prime does. The updated standard allows for better performance," says Sharma.

When the Seacom high-capacity bandwidth link lands on South African shores in late June, however, consumers can expect bandwidth prices in general to decline sharply, forcing the likes of Neotel and Telkom to once again adapt their offerings.
 
Neotel says it will introduce lower bandwidth caps and price points for its multi-user broadband offering if that's what consumers are looking for

Seriously -WTF!?
I'll spell it out for 'em:
People want: smaller price && BIGGER CAP

10gb Is waaay too small for an office of 10-20 peeps.
 
"There is clearly a demand in the market for smaller caps. Neotel will take all feedback into consideration and provide services accordingly,"

There is a demand for lower prices.:mad:

Idiots. They were so close to getting it right, now they have to have a major re-think, and come up with the same stale offering the other service providers have.:sick:
 
Pricing for a 1GB package

Modem: R100 pm

Bandwidth: R70 pm

Total: R170 pm

Note: This is a guestimate based on info available and not from Neotel

Compares well with cheapest Telkom ADSL of R199 pm (modem included with 24 month contract)

Compares well against iBurst R239 - PPPoE modem included.

Compares well against 1G Vodacom/MTN packages.

If it is true that prices could fall after the completion of Seacom, it would be interesting.

My guess: Prices will remain at R200+ pm, but the quotas and bells will increase. I doubt if the overheads would make any sub-R200 contract worth the while to administer and sell.
 
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If I might make a suggestion :

Be flexible on the caps, and drop your price a bit more. Give a month-to-month option to people who will want such an option. (I would like to have a month-to-month option, or even better, prepaid).
 
What i find very strange is that they dont offer a month to month option where u can just buy the device, that eliminates the contracts which is scaring of half of their customers, and they dont pay interest on the cost for the devices while people pay them back, and people will still stay with them, they are not very likely to just quit after paying R2400 for a router they can only use on neotel.
 
What i find very strange is that they dont offer a month to month option where u can just buy the device, that eliminates the contracts which is scaring of half of their customers, and they dont pay interest on the cost for the devices while people pay them back, and people will still stay with them, they are not very likely to just quit after paying R2400 for a router they can only use on neotel.

Ja, I can't understand it either.

Telkom offers prepaid, as well as the three cellular providers.

Neotel have nothing to lose, the device have been paid for, and all they need to do is to check that the customer's paying up every month.

Blacklisted people who won't be able to open an account can at least use the prepaid option.

Is it really that difficult to set up a prepaid system? Once the airtime runs out, there's no connectivity.

Same can go for iBurst - why not a prepaid option?
 
While i also would prefer a prepaid option, i think they're taking a step in the right direction if they should offer ie 5 Gb for let's say R399.00.
This is way cheaper than any other wireless offering, it kills Vodacom and MTN;s HSDPA offerings (ie for R450 on Vodacom you get 2 Gb), so while it's still not perfect, at least now they've got my attention, and i'm guessing the attention of loads of other home users as well.
 
I was in a bad mood yesterday after seeing new Neoflex prices.

I was waiting ages and thought they were the company to watch,thinking i would get myself a lovely 5GB Neoflex bundle and could buy the device and go prepaid.
Boy was horribly wrong!
I actually had no pc internet for a week in anticipation of Neoflex, and i had all the papers and details ready to sign up.

Today im back on Voda3g 2gig and its exactly where i will stay until this changes!
NEOTEL WE WANT 5GB FOR R350-400 [BEFORE JULY]
15 GB FOR R350 [AFTER JULY] AND PREPAID. Or the competion WILL CRUSH YOU!
TATA NEOTEL AND YEBO YES!
 
...if they should offer ie 5 Gb for let's say R399.00.
If it was 5Gb at R350 they'd get my attention.
BUT they'd need to sort out their shoddy products(those phone things break a lot), their unreliable speeds and useless customer support. And they would have to forget about 24 month contracts as well.
 
So I ask a simple question: HOw many of you have set up systems and a network that does prepaid in a matter of 6months that performs flawlessly?

And did you get all the funding for all the bells and whistles together with a flying pig too?

You have to ensure that the network and systems that support these bells and whistles that you want is mature and stable enough to handle the load from all the whining customers not to mention manage the traffic (i.e. route all of it correctly etc in less that a micro-second).

Ever thought about that? Trust me from my experience networks first go through a lot of hoops and teething issues before you can get everything you expect - MTN was never as good as they are now in their early days! You also have to deal with equipment vendors that can make the options that a network would like to put out there at a decent price - every piece of network equipment a network purchases is paid of in US $$. So take the exchage rate and its roller coaster ride and then try and pass that onto the consumer!

Give them some benefit of the doubt!
 
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CriticalConsumer I agree with you on the network setup, it is in no way a easy task setting up a national network. The problem is not with their technical side, but more with the business side of things, they are missing a huge market at the moment. They only targeted Neoflex at high end consumers and SME`s, the thing is the normal user also needs wireless nowdays, nowdays most people have their own computer, almost every household that can afford broadband has more than one computer. My 49 year old mom who wont be able to figure out DSTV tv guide would find it ridiculous that she cant sit in front of the TV with her laptop and check her mail. And from the network side it makes no difference whether there is 20 computers using the 3.1mbps line and 10Gig cap, or if there is one, its all rooted through NAT. Now since they are selling them I assume the network can handle these speeds and caps, and since its only early days the network should still have a very light load. So why not release a 3Gig cap, take the R100 for the device, slap on the bandwidth cost and a bit of profit for Tata? By June you will have thousands of customers, seacom comes online and you have more bandwidth than you will need for years to come. I`m not very critical of them, i`m just wondering why. The only reasons I could come up with is that they dont have enough devices or support staff to grow their customer base that quickly. Their coverage etc is actually quite remarkable for a company that`s this new. I`ve done enough networking modules and Cisco courses at Uni to know that setting up a network of this scale is by no means a easy task.

From a business side its better to sell the device for 24 x R100 = R2400 rather than R100 per month, your service appears cheaper and you can offer prepaid option. Or atleast offer both options. If you provide a good service people will stick with it, if not they will cancel anyway even if you have a contract, and do you really want to try and keep customers by locking them in?

But they have done a pretty good job this far, they should just come read the MyBB forums to see what the real internet junkies want :) That being said, I phoned them yesterday to order neoflex, and if the eventually come back to me i`l be getting it.
 
Thing is though, what percentage of the entire market do the internet junkies make up?

Sure they put out he high end products first - any company would cos u wanna show ur best, then follow it up with the rest.
I know for certain that those packages will come but as a pre-caution limit the number of subs initially to ensure that if there are any major issues, it does not impact revenue.

Let's see what happens...i think the market will get what they want - just be a little patient.
 
Cheeky PosT

While i also would prefer a prepaid option, i think they're taking a step in the right direction if they should offer ie 5 Gb for let's say R399.00.
This is way cheaper than any other wireless offering, it kills Vodacom and MTN;s HSDPA offerings (ie for R450 on Vodacom you get 2 Gb), so while it's still not perfect, at least now they've got my attention, and i'm guessing the attention of loads of other home users as well.

Ok this is Cheeky but i think it would Work !

24 Month Contracts only !

R199-00 = 2 Gigs
R399-00 = 5 Gigs
R699-00 = 10 Gigs
R899-00 = 15 Gigs

8c per Meg - Out Of Bundle
Device to be included in all of the above packages !

Prepaid only !

Purchase your Device outright or pay R80 per month for the Device only !

R99-00 = 1 Gig
R149-00 = 2 Gigs
R349-00 = 5 Gigs
R649-00 = 10 Gigs
R849-00 = 15 Gigs

8c per Meg - Out Of Bundle
NO FREE Device to be included in all of the above packages !

Just a thought - Maybe someone will take Notice:)

Please forget about MTN, VodaCom, Cell-C & Telkom's Pricing.
( If they could help it they would charge you R50 a megabyte )
They are only re-acting to market forces pressure !

NeoTEL proved the following can be done in South-Africa :

An sms can be sent for as little as 10c Cost to the Subscriber with a good profit from it too.
A voice Call irrespective of distance can be carried for as little as 60c Over Wireless.
Data can be sold without SEACOM for as little as 8c a megabyte to the Consumer.

ICASA and DOC will be Confused by all of the above !

DXL - Consumer
 
@DXL: that seems about right. ;)

Does the OP know anything about the date of said new packages? Hopefully within a month or 2?
 
This is why companies will keep on offering packages that only fools agree.

Its about time that some of you start thinking logic and suggest decent cap at a decent price.

5 gig for R350.00 lmao

If CriticalConsumer (whoever you are) mentions dollar/rand exchange rate he should also compare services offered in North America compared with the crap that Telscum and NoeChit offer here.

It is possible to offer unlimited broadband and much cheaper prices then what is currently being offered. The proof that it can, will be seen in July, provided everything runs smoothly with Seacom.

DO NOT SIGN ANY CONTRACT WITH NEOCHIT OR TELSCUM, THERE ARE ONLY 5 MONTHS TO GO. HANG IN THERE, IF WE WAITED THIS LONG WHY NOT GO ALL THE WAY?
 
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