Otel Telecoms (Otel) has unveiled its NGN-Internet services, which compete directly against Telkom’s leased line services, Broadlink’s microwave leased line products, and Neotel’s NeoBroadband offerings.
The Otel NGN-Internet offerings are symmetrical broadband products, based on Telkom’s Diginet service which uses existing copper infrastructure.
If offers contention ratios of 1:1 and 1:4, depending on the client’s needs and budget. It also comes with a free Cisco router on a 12-month contract.
Otel CEO Mohammad Patel told MyBroadband that there was a need in the market for a symmetrical business broadband service with low contention ratios, but at an affordable price.
Patel explained that many of his business clients needed a carrier grade business broadband solution, but that the prices associated with traditional leased line services were simply too high for them to consider this option.
According to Patel the poor service levels associated with ADSL also discounted this option for business use where a very stable and robust bandwidth solution is needed.
Patel partnered with Telkom to use their existing Diginet infrastructure to offer the company’s NGN-Internet service, but at a significantly reduced price.
Patel added that they can also offer a symmetrical 10Mbps service using Telkom’s Diginet infrastructure by bonding multiple 2Mbps lines using Cisco equipment.
Otel’s NGN-Internet pricing starts at R1,799 per month for a symmetrical 1Mbps service, and increases to R17,000 for a symmetrical 10Mbps service.
Patel highlighted that these prices should not be compared with ADSL as the service is vastly different from consumer type broadband offerings (like ADSL) with high contention ratios and unstable throughput.
The following table provides an overview of how Otel’s NGN-Internet pricing compares with competing services in the market.
|Business leased line/broadband services|
|Vox Zeppelin Express||1Mbps||R2,591|
|iBurst Business Link||1Mbps||R4,900|
|Vox Zeppelin Express||2Mbps||R4,339|
|iBurst Business Link||2Mbps||R5,450|
|iBurst Business Link||10Mbps||R14,010|
|Vox Zeppelin Express||10Mbps||R19,219|