“We are not another Sentech” says Neotel
Neotel launched their first broadband service called NeoConnect in May 2008, using CDMA technology typically used for mobile networks. The company however did not call this ‘broadband’, but rather ‘fast Internet’ with real world speeds of 300-700kbps.
The company offered both capped and uncapped NeoConnect packages in 2008, and in January 2009 complemented its NeoConnect services with a higher performance, data-only NeoFlex data offering.
In May last year Neotel launched their NeoBroadband Wimax service aimed at business and high-end residential customers – again offering uncapped access.
CDMA and WiMax networks
To date Neotel has signed up around 50,000 NeoConnect and NeoFlex data customers in areas covered by their 300 CDMA sites.
Neotel CTO Angus Hay said that most of their problems associated with CDMA coverage and overloaded sites have been resolved, and the company is closely monitoring traffic to address bottlenecks quickly when they occur.
On the WiMax side Neotel currently has 70 sites, serving customers mainly in areas with a high density of business customers.
According to Hay, Neotel is not planning to grow its CDMA and WiMax networks to many new areas, but pointed out that they will continue to invest in these wireless networks to address any congestion or other problems which may occur.
Neotel will also continue to market its residential offerings, sign up new customers and support their current customer base. “We are definitely not another Sentech,” said Hay.
Uncapped challenge
Neotel last year discontinued their uncapped NeoConnect packages, raising renewed questions about the company’s choice of CDMA to provide residential Internet access.
Hay however maintains that CDMA was the right choice for Neotel despite the challenges they faced when it comes to uncapped broadband services.
Hay said that their network is essentially the same as all other mobile operators globally offering high speed data services, and that challenges associated with uncapped Internet access is not unique to Neotel.
Hay said that there is always a theoretical limit which one hits with a mobile wireless network, and that a small percentage of high-data users will hurt a network. “Neotel should have been more careful before offering uncapped services,” Hay admitted.
Neotel migrated some high end users to their uncapped WiMax services to address the network congestion problems, and moved away from uncapped CDMA offerings. This, said Hay, was the simplest way to control problems with high usage.
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