Neotel's Slow but Steady Start

"You can’t just go straight into a price war with a player like Telkom. It’s going to take us at least 12-18 months to just set up our network"

Aaggh - here we go again :eek: (Looks around for a tall building to jump off!)
 
"The South African regulator — the Independent Communications Authority of South Africa (ICASA) — will have a critical role to play in opening up especially the country’s retail markets.
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We are screwed...
 
The first target market that has been captured are the wholesaler buyers of bandwidth, companies like MTN, Cell-C, arivia.com, Internet solutions, M-Web and Telkom Lesotho. As this is a regulated price, Neotel cannot offer it more cheaply than anyone else.
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This is news to me. Anybody know where this is regulated and if there's any chance of it changing? And if so, when?
 
I liked the first article. Very realistic approach. I get the feeling they have thought this through a lot and will succeed
 
According to the second article, "Telkom said that, furthermore, product innovations in the form of bundled packages such as Telkom Closer and Telkom Supreme Call had substantially increased the value that residential and business customers derived, and had made considerable savings possible over and above Telkom's price reductions."

Interesting, given the following...

"SupremeCall exclusions

The following call types are excluded from SupremeCall and will be rated as per Telkom's normal call rates - Premium rated calls, Teleconferencing, Incoming calls like SmartAccess calls, Operated-assisted calls Service calls, WorldCall, Public Payphones, Carrier Select/Carrier Pre-Select and calls other than those originating and terminating in Telkom's network, excluding international calls."

and

"TelkomCLOSER Service Conditions

All fixed line calls must originate and terminate on Telkom's network to qualify for the benefits of Telkom CLOSER or the optional Internet add-on."

Caveat emptor, as they say.
 
ads said:
All fixed line calls must originate and terminate on Telkom's network to qualify for the benefits of Telkom CLOSER or the optional Internet add-on."

Caveat emptor, as they say.
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This is unavoidable given interconnection fees. Except for the Internet add-on bit which is probably just to avoid people tying up the lines.
 
What types of business are we talking about? Who makes up this 15 percent and what are you’re competitive advantages in serving these sectors?
“The first target market that has been captured are the wholesaler buyers of bandwidth, companies like MTN, Cell-C, arivia.com, Internet solutions, M-Web and Telkom Lesotho. As this is a regulated price, Neotel cannot offer it more cheaply than anyone else. But our edge is that wholesale users can negotiate with people in Johannesburg rather than having to go via London as was the case previously. .....”
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Who regulates the price of bandwidth and why was it previously done via London? :confused:
 
Neotel has a larger share in SAT3 than telkom (but can't land it.) Neotel (through Tata) also own 'their own' cables and shares in others. International traffic through those cables must be regulated, or rather sold at agreed prices through the network operators many of which would be co-owners, signatories of different cables around the world. There must be base prices set for switching carrying traffic on these cables (and satellites?) SAFE must (also?) tie in directly with Tata cables in the far east. Perhaps Neotel based in Jo'hannesburg can sell their own bandwidth to "companies like MTN, Cell-C, arivia.com, Internet solutions, M-Web and Telkom Lesotho" undercutting telkom?

The fact that telkom sell us bandwidth at outrageous prices has nothing to do with them 'co-existing' with other network players. Tata through it various shares and ownerships can sidestep this?

My thumbsuck.
 
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