Call Rates: Telkom versus Neotel

Neotel recently filed their call rates with ICASA and released it into the public domain. The key question on many people’s minds is how they compare to Telkom’s rates.

Basic service comparison

One of the main differences between Telkom’s call rates and that of Neotel is that Telkom has minimum call charges whereas Neotel has per second billing on all calls.

Telkom has a minimum call charge of R 0.521 for local calls for both standard time and callmore time, and a minimum charge of R 0.57 for all national calls.

Telkom further charges mobile calls in increments of one minute for the first minute and in increments of 30 seconds thereafter. Neotel applies per-second billing to all mobile calls.

Per-second billing can result in significant savings on a subscriber’s monthly bill; something which Neotel says will save users 20% or more.

“The important comparison for businesses is the total bill, looking at all calls over a period, and this shows a substantial saving for a typical business. It is also important to remember that Neotel's rates are all per second billed, which makes a big difference to the average price of a call,” Neotel’s Angus Hay points out.

“Non-per-second-billed calls are typically 20% or greater more expensive on average than per-second-billed calls.”

Detailed Comparison

The following table gives a detailed comparison of per-minute call charges from Neotel and Telkom.

Neotel highlighted that these are out-of-bundle, undiscounted prices, and hence are only directly applicable to NeoVoice, before any customer discounts are applied. They are also not directly comparable to Neotel’s forthcoming consumer products, for which bundle pricing is yet to be announced.

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