Recent changes in uncapped ADSL pricing and the imminent launch of 20Mbps and 40Mbps VDSL services by Telkom are putting pressure on Neotel’s NeoBroadband fibre products. However, Neotel said that it plans to boost their fibre broadband offering.
Abid Qadiri, Neotel’s chief business solutions excellence executive, said that Neotel is working on various solutions to enhance the experience of their NeoBroadband fibre services.
“These enhancements will address specific customer requirements including bandwidth, pricing and value added services. We will communicate the details closer to the launch,” said Qadiri.
Neotel NeoBroadband fibre versus Telkom DSL
Telkom is set to launch their DSL Up to 20Mbps and DSL Up to 40Mbps on 4 March 2013, with retail prices emerging of around R480 for a 20Mbps connection and R650 for a 40Mbps service.
These new high speed VDSL services, coupled with more affordable 10Mbps uncapped ADSL products, is putting pressure on Neotel to improve the value proposition of its NeoBroadband service.
For example – Telkom Business’ 10Mbps TBiz Premium+ Uncapped service, priced at R2,895, is significantly cheaper than Neotel’s 10Mbps NeoBroadband product which costs R9,348.
Neotel’s NeoBroadband product’s maximum speed of 15Mbps is also much slower, and more expensive, than Telkom’s planned 40Mbps VDSL service.
Neotel previously said that it is working on a NeoBroadband Lite service, aimed at competing directly against Telkom’s ADSL offerings. However, Neotel did not provide details on plans related to this new fibre broadband service.