Neotel passes the R2 billion mark

2009-09-22 13:45

TWO years after setting up shop, unlisted telecoms firm Neotel is

starting to make inroads into Telkom’s fixed-line phone market share.

The fixed-line phone operator said on Tuesday that its

enterprise-based telecommunication services have crossed the R2,2 billion-mark

in terms of consolidated annualised revenue for the operating year.

Its next move is to start rolling out aggressively its services in

the the consumer market.

This will enable it to achieve the R3 billion revenue mark by the

end of this year as it seeks to further loosen the grip that Telkom has on the


Neotel chief executive officer Ajay Pandey said the company would

extend its consumer services to Pietermaritzburg, East London, Port Elizabeth

and Cape.

The company will roll out both CDMA (wireless technology used for

offering voice and data services) and Wimax services in these cities, Pandey


Although the company has rolled out nearly 200 base stations, it

has however encountered coverage setbacks in Cape Town.

So far Neotel’s corporate clients are Standard bank, Web Africa,

Internet Solutions, Tenet Africa, Sita, Vox telecom, and the National Health

Laboratory Service.

Last month the company launched its data card, NeoGo, which to date

has sold over 1 000 cards.

Neotel plans to open its first retail store in Fourways’ Cedar

Square Mall in Johannesburg.

“Based on input, we believe we can expand our footprint either

directly or through franchisees,” Pandey said.

Three more stores are planned in Pretoria, Cape Town and


Africa Analysis telecoms analyst Dobek Pater said Neotel faced a

challenge of growing its market share beyond the current 15% in fixed-line


The firm currently has 30 000 subscribers, which it hopes to grow

to 50 000 by end 2009.

Nearly 60% of these subscribers are using its data products while

the remainder signed up for the voice offering.

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