Neotel versus Telkom

Fixed and mobile termination rates were reduced on 1 March 2011, in line with the Independent Communications Authority of South Africa (ICASA) glide path announced last year.

Vodacom and MTN’s peak mobile termination rates were reduced from 89c per minute to 73c per minute, while off-peak mobile termination rates were also reduced, from the previous 77c per minute to 65c per minute.

Fixed line termination rates were also reduced on 1 March, with the new peak and off peak rates dependant on whether or not the calls terminate within the caller’s area code.

Neotel were quick to pass on these savings to their subscribers, and said in a press statement that it has “kept its promise, and has passed on cost savings to its customers, by reducing the price of calls to most mobile phones.”

Neotel calls to MTN and Vodacom phones will now cost 95c (plus VAT) during peak hours, and 85c (plus VAT) during off-peak hours. Calls to Cell C and 8ta cost R1.20 (plus VAT) during peak hours, and 96c (plus VAT) during off-peak hours.

Telkom was also expected to cut their retail prices after the lower mobile termination rates, but to date the company has been mum on the issue and has kept its prices unchanged.

Pricing Comparison

The following table provides an overview of how Telkom and Neotel stack up when it comes to call rates.

Peak Call Rates (Ex VAT)
  Neotel Telkom
Neotel Local 15c 57c
Neotel Regional 29c 57c
Neotel National 38c 57c
Telkom Local 30c 38c
Telkom Regional 40c 57c
Telkom National 50c 57c
Vodacom/MTN 95c 129c
Cell C/8ta 120c 129c
Off-Peak Call Rates (Ex VAT)
  Neotel Telkom
Neotel Local Free 57c
Neotel Regional Free 57c
Neotel National Free 57c
Telkom Local 15c 18c
Telkom Regional 25c 29c
Telkom National 29c 29c
Vodacom/MTN 85c 103c
Cell C/8ta 96c 103c

Neotel versus Telkom
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Neotel versus Telkom