KZN focus for Neotel

2008-02-06 00:00

Neotel, the country’s first so-called converged communications network operator, is up and running in KwaZulu-Natal, having already committed to an investment of more than R370 million in KZN and the Eastern Cape in a two-year period, R120 million of which has already been spent.

Speaking to The Witness at the launch of the company’s corporate offices at River Horse Valley near Umhlanga yesterday, Neotel MD Ajay Pandey said that KZN is a critical location for the company.

He added that the greater Durban area, with its service-based economy, poses an attractive market for Neotel.

"It is definitely one of the important legs of our overall game plan … In order for these service-based companies to be successful, they require quality information and telecoms support."

Pandey said that he has had an opportunity to take a look at the IT industry in the region.

"This is one area of South Africa that can trigger off a growth in the knowledge based economy."

The company already boasts 22 "enterprise customers" in the province and more than 40 blue-chip customers nationally. Neotel this week secured a R454 million tender with the State Information Technology Agency (Sita).

In addition, Seacom (the developer of a private submarine fibre optic cable that will connect SA, Mozambique, Madagascar, Tanzania and Kenya to India and Italy) and Neotel recently entered into negotiations to offer Tenet (a not-for-profit entity that runs a national research and education network) discounted international bandwith for education and research purposes.

He noted that the "arrival" of Seacom in Mtunzini could mark the establishment of the region as a "distribution point of bandwith from SA to the globe".

He added that it is not inconceivable that IT giants such as Yahoo and Google may even consider setting up shop in Durban as a result.

Neotel has also secured contracts with the Further Education and Training Institutions.

Pandey noted that their acquisition of Transtel, a former "outfit" of Transnet, will strengthen their business presence in Durban by bringing Transtel’s existing customer base into the Neotel family.

Neotel has utilised local SME contractors in their roll-out process in KZN and the Eastern Cape, creating 1 200 jobs in the process.

Pandey noted that an additional 300 kilometres of fibre will be rolled out in the two regions, adding that 30 Wireless CDMA sites (or WiMax) will be established by the end of this year.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.