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Neotel will compete with Telkom on price, Pandey insists, but that will not be the company's sole value proposition. He says residential subscribers will have access to a 24-hour call centre and won't have to wait to have a service installed. He also promises that in broadband, where prices are particularly high, Neotel will not "shy away from taking whatever steps are necessary" to win market share.
"People are waiting six months for ADSL [Telkom's fixed-line broadband] or for a phone line. I can't have a phone when I want one. People can't access call centres after 5 pm or 6 pm. Some of these things are obvious for me [to fix]. The incumbent will respond, for sure, but... all incumbents have grown when the market has been opened up."
Pandey won't say how many customers Neotel hopes to sign up. He says the company will have a better idea once it has completed a pilot in Gauteng where it is constructing a network of base stations using a wireless technology called CDMA2000. The pilot will kick off in a month and will involve about 20 base stations.
He says the next hurdle is getting cheap access to international bandwidth. Here, it is pursuing a number of options. The first involves using the Sat-3 submarine cable that links SA with Europe. Telkom has exclusive access to the Sat-3 landing station but that should change soon with new regulations on the cards that would declare the station an essential facility.
In the longer term, Neotel is considering investing in two new submarine cables that would run along Africa's east coast. Construction of the first, the East Africa Submarine System, or Eassy, is expected to start soon. The second cable system, known as Seacom, is backed by US private equity group Blackstone.