Mukul Sharma listens carefully as I explain a relative’s experience as a new subscriber to Neotel’s consumer services.<\/p>\n
Sharma, who heads Neotel’s consumer business division, has the difficult task of selling the group’s consumer services to a sophisticated public that knows what it wants when it comes to telephony.<\/p>\n
He has his hands full extending out Neotel’s first services directly to the public in Cape Town, Durban, Johannesburg, Pretoria and Ekurhuleni. So far, there have been no serious problems. “Most feedback has been quite positive,” says Sharma.<\/p>\n
My relative’s experience with Neotel reflects the positive feedback Sharma has been receiving. Besides the inability to continue using the Internet while on the phone, which also acts as a modem for the computer while it is in use, there were no other niggles.<\/p>\n
Sharma says the problem of remaining connected to the Internet will be solved once Neotel gets more advanced phones. But this small matter is just one of the issues he has to deal with.<\/p>\n
For one thing, he has to put in place a distribution plan for a national network. He also has to make sure that the sales force of its channel partner, Postnet is capable of selling a sophisticated telecom service.<\/p>\n
The complexity of the service Neotel is selling should not be underestimated, warns Sharma. “It’s not a prepaid airtime voucher that you are selling. People have to be trained on the technology involved,” he says.<\/p>\n
Sharma says Neotel is still evaluating whether it must bring in more channel partners, open its own franchise stores or just get a space in large chains to punt its services. For now the group is thinking about having a mixture of these strategies.<\/p>\n
Another difficult issue for Sharma to deal with is how to control the expectations of prospective consumers. Without even advertising, the group’s management already receives at least 200 e-mails a day inquiring about its consumer services. At a product promotion at Rosebank Mall, a popular shopping centre in Johannesburg, around 2 000 people signed up to be contacted about connecting to the group’s service.<\/p>\n
Looking at what is on offer, it is easy to see why these consumers were so excited by Neotel. Its NeoConnect Prime service offers high-speed Internet – up to 2,4 MB\/s, and average speeds between 300 KB\/s and 700 KB\/s; a 2,5 GB\/s to unlimited data per month; the ability to send and receive SMSes; as well as subscribers getting their own e-mail account along with instant connectivity ranging from as little as R399 to R999.<\/p>\n
Sharma says the group’s consumer campaign will be focused on the strengths of its offering. “Easy to use, easy to buy and easy to fix,” he says.<\/p>\n
It’s a lot easier to install than ADSL lines and it’s cheaper than the 3G service offered by the mobile operators.<\/p>\n
A clear advantage Neotel has over its competitors is the amount of data it offers for the price it is charging. Its rivals offer 2GB for about R450; Neotel offers 2,5GB for about R400.<\/p>\n
Sharma says besides these services, the group will soon also be offering fax and Ethernet. With such a well-priced product, it is not surprising that Neotel has been careful in how it sells its services. The last thing the group wants to do is overpromise and underdeliver.<\/p>\n
To prevent this from happening, it has taken the precaution of not selling or advertising its service where it does not yet have coverage. Prospective customers can either find out through the group’s website or its call centre whether their areas are covered.<\/p>\n
Subscribers who have a Telkom line but are hesitant to move to Neotel because they fear losing their number need not worry. Regulations have already been introduced by the Independent Communications Authority of SA requiring fixed-line operators to provide number portability for block numbers.<\/p>\n