Neotel NeoFlex vs Telkom DSL
After launching a stripped-down, basic home phone service last month, Neotel will in the next fortnight (hopefully), fire its next salvo in its war against the incumbent. It’s been a somewhat “steady” process, and consumers have been anxious about the pace of Neotel’s service rollout. But, as MD Ajay Pandey has reminded us all from the outset, one doesn’t build a phone network overnight.
The converged operator gave a sneak preview of its data offering at the phone launch in October. It said previously it would release pricing before the end of November, but multiple sources at the company say this announcement won’t be made this week.
The NeoFlex service will be a data-only offering. The product you “buy” will be a router: a small box with some network (Ethernet) ports as well as four aerials. It also has a back-up battery which lasts for over two hours, a very necessary “feature” for a market used to load-shedding and built-in Wi-Fi which is incredibly handy. Switch on your laptop, connect to the network and work in front of the TV. Then move to your bedroom. You get the picture.
Neotel’s listened to feedback from consumers who’ve been asking for a data service since the consumer side of the business was launched earlier this year. The company maintains it wanted to get the right product(s) to fit the needs of the consumer, rather than simply forcing overseas products on hapless South Africans.
The router connects to the Neotel network and will offer you high-speed data connection. The obvious attraction is that, like all wireless products available in the market, you don’t have to wait for an installation of a physical copper wire for a DSL service (for example).
NeoFlex runs on a higher speed version of its network than the other devices it’s already launched, such as the NeoConnect Prime converged handset (for those into the technical detail, the NeoFlex router supports CDMA2000 1xEV-DO Rev A).
The “Rev A” is the clincher: this higher-speed network has maximum download speeds of 3.1Mbps and maximum upload speeds of over 1Mbps. It sees users experiencing an average download speed of about 1Mbps while browsing.
But how does this compare?
It’s logical to compare NeoFlex to Telkom’s 4Mbps DSL offering. The speeds are fairly comparable, and unless you live right next door to the exchange (and you know someone who knows someone), it’s unlikely you’re experiencing download speeds near 4Mbps (even at 4am on a Sunday morning).
Cost
The cost of DSL is somewhat deceiving at first glance. A 4MB DSL line from Telkom (JSE:TKG) will set you back R413 a month (for “access”). Now add to this the internet service provider portion. TelkomInternet will sell you 3GB of data for R259 a month (that’s for “3GB Premium” … not to be confused with “3GB Advanced” or even “3GB Business”). So you’re in for about R700 a month for 3GB of data (If you want a DSL modem with Wi-Fi, be prepared to pay about another R1 000).
While the NeoFlex pricing remains a mystery, one can quite easily deduce that the packages will be comparable to Neotel’s NeoConnect Prime tariffs. Neotel has promised it will be aggressive with its pricing. On the NeoConnect Prime service, you can buy (amongst others) a 5GB data package for R499, a 15GB one for R699 and an unlimited service for R999 per month (including the handset).
However, along with these packages, you get a number of bundled minutes and SMSs. On the NeoFlex data offering, there’ll (obviously) be none of that. Sources at Neotel have already said there’ll be no unlimited option on NeoFlex packages. However, one could safely speculate that there may, for example, be a 15GB package for around R649 or even R599 (a discount to the NeoConnect Prime price). Out of bundle data rates will remain at 8c per MB (constant with all of Neotel’s other packages).
Compare this to Telkom’s Do on the move (“fixed” 3G) pricing of R1 499 per month for a 10GB service. Out of bundle rates on Telkom’s service are 30c per MB. The pricing for 3G data from the other mobile operators is much higher, but you do get the benefit of being able to roam while being connected (unlike Telkom). A 3GB Vodacom 3G HSDPA contract will set you back R649 a month. MTN’s packages are comparable. The out of bundle rate is R2 per MB. On iBurst, you can get a 5GB bundle for R619 per month.
Experience
Having used all the available access technologies and networks over the past few months (barring Telkom’s Do on the move 3G service), it’s easy to establish the average as well as peak download/upload speeds a user will experience.
There’s no doubt that Vodacom and MTN’s peak 3G HSDPA speeds can’t be matched. Large photos (2MB) will be pulled down (on a quiet day, with a good connection) at far above 1.5Mbps. You will be able to download an mp3 file (of about 5MB) in literally a few seconds. But this speed is infrequent, by nature quite unstable, and it comes at a cost premium.
Telkom’s DSL is the standard. DSL can’t really be matched in terms of stability because, by definition, it is a high speed copper connection. But, we’ve all experienced our fair share of problems and hiccups with DSL (that’s if the copper hasn’t been stolen). Moneyweb runs a couple of high-speed DSL lines into the office and even with no other staffers around, at off-peak times, one struggles to get large files (+/- 100MB) to download at anything faster than about 120-140kBps (compared to NeoFlex’s 170kBps). The same applies to iBurst, but it has coverage in its favour. It has hundreds of base stations around the country, and isn’t like Neotel and Telkom’s 3G effort, confined to areas within major metros.
Using the Neotel service for a week has become a habit. So much so, that it’s difficult to imagine not having on-demand, always-on internet access at home. It’s a lot less hassle to connect than inserting a 3G modem for example. Basically, it’s DSL without the cable. There’s no waiting for installation, and it’s incredibly easy to get up and running.
There have been a number of smaller hiccups though. Every now and then (infrequently and unpredictably) the connection drops almost entirely for a few seconds. It must be stressed that this doesn’t happen often at all, and is quite comparable to the packet loss DSL users experience on a daily basis. The coverage is another negative. Unless you’re in a biggish suburb in a major metropolitan area, forget it. And if you’re an online gamer, the higher latency on the NeoFlex service (because it’s wireless) will make it difficult if not impossible to play multi-player games on it.
So is it better? The short answer: yes. And, you definitely won’t get better value anywhere else.
Moneyweb
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