Broadband23.02.2011

Neotel explains Fibre to the Home plans

Many consumers feel that Neotel has failed to bring true competition to Telkom, especially when it comes to fixed line broadband access.

Consumers pinned their hopes on Neotel to start rolling out Fibre-to-the-Home (FTTH) and provide affordable high speed broadband access.

While Neotel is rolling out Fibre-to-the-Premises (FTTx) to businesses, and is offering them NeoBroadband Fibre services, the residential market has missed out so far.

Bad news for consumers is that Neotel does not have immediate plans to offer FTTH services. Neotel CTO Angus Hay said that they have no short term plans to roll out a fibre access network to residential customers as the business case simply does not make sense.

Hay highlighted that a better model to fund FTTH infrastructure build – and make such a service offering more sustainable – is needed as the current business model (where an operator rolls out a fibre access network on their own) is not viable at the price which consumers would expect to pay for a residential broadband offering.

Hay did however indicate that the fact that they will not invest in a residential fibre access network does not discount other FTTH business models which make more financial sense.

Hay said that they are looking at creative ways which may make FTTH a reality, like partnering with gated villages which may have their own fibre infrastructure over which Neotel can offer broadband services.

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