Telecoms11.08.2008

We will lay cable, says Neotel

The company’s head of network implementation, Imran Abbas, made this bold announcement during a routine discussion about trends in the information and communications technology industry

Only two weeks ago Tim Lowry, MTN South Africa’s managing director, announced the launch of its metro-wide fibre networks, and the company’s intention to build a 5000km nationwide network with an unknown partner. That partner turned out to be Neotel.

The second fixed-lined operator said it was eager to start construction this year, while MTN said that it was still verifying tenders for contractors. Abbas said: “We have wasted enough time already. The contracts are sorted out, and we should start the construction in a month’s time. We are prepared to do it with anyone.

“The first phase will be 5000km, and the second will be 2500km.”

The company already has an 8000km metro-wide fixed-fibre network in alliance with Infraco. MTN was unavailable for comment on Friday.

MTN has been very secretive about its partner and suppliers in the nationwide network. Neotel declared that it had hired Plessey and Nokia Siemens to manage its projects, while hiring a number of smaller sub-contractors. Neotel is anxious to beef up its network capacity in order to meet increasing demand created by its recently launched advertising campaign.

Since the company’s launch of its consumer services in April, it has managed to sign up only about 2000 customers. Angus Hay, Neotel’s chief technology officer, promised that the real take-off of its services would be seen once the television viewing public had heard about it.

The company provides fixed-mobile phone, Internet and data services over a CDMA2000 wireless network that is similar to GSM (global system for mobile technology). There are 62 Neotel CDMA towers nationally, 49 of which are in Gauteng. The company also has a WiMax network reserved for corporate clients. Brian Neilson, BMI T research director, said Neotel was the only “truly converged” operator, whereas other operators were offering limited packages.

Neilson said that, with the rate of development of fibre networks, it was a matter of time before individuals could lay their own fibre through community forums.

Neotel is still experiencing growing pains. A recurring issue is that the handset it has designed for households cannot be connected to a standard Ethernet cable.

The company is trying to expand its market and hopes for a boost from next month’s implementation of geographic number portability, which will enable customers to keep their Telkom numbers if they switch operators.

However, Abbas said that for the moment “we’ll be targeting gated communities and corporate clients”.

Neotel network discussion

 

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