Neotel-Vodacom deal: lower prices, better networks

Neotel subscribers could look forward to lower prices or faster broadband speeds as Vodacom concludes the deal to acquire 100% of the company, Neotel CEO Sunil Joshi has said.

In an interview with MyBroadband, Joshi said that they found the nature of the two businesses (Neotel and Vodacom) to be quite complementary.

As an example, Joshi highlighted that Neotel has access to 16,500km of national long-distance fibre, of which about half is their own and half is leased; and around 8,500km of metro fibre.

“This [metro fibre] gives us a unique capability that is complementary to Vodacom’s own capability,” Joshi said.

As the two business complement one another there are “cost synergies that will derive from it,” Joshi said, adding that this will let them invest in the footprint and improve cost efficiencies.

Asked if “improved cost efficiencies” means lower prices for their users, Joshi said that if you look at the market today Neotel looks at either giving better speeds for the same price, or a better price for similar speeds.

“You’ll see a combination of both where customers either look for higher speeds, or lower prices,” Joshi said.

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Neotel-Vodacom deal: lower prices, better networks