South Africa’s second national operator (SNO), Neotel, has launched its first voice and internet services for residential users. The SNO is offering a CDMA-based fixed wireless service called NeoConnect to users in parts of Johannesburg and Pretoria. The initial launch is for users who have already registered an interest with Neotel; a full commercial launch is scheduled for next month. The NeoConnect Prime tariff offers 1,000 minutes to Neotel numbers, 50 SMS to Neotel numbers, an e-mail account and up to 10GB of internet access a month for ZAR599 (USD78). Internet download speeds will average between 300kbps and 700kbps on the CDMA2000 1x EV-DO network.
Wireless Mobile Telecom Wireless News
- November 12th, 2007
- 1:16 pm
South Africa’s second national wireline operator Neotel says it is still committed to taking part in the planned Seacom undersea cable project which will link a number of African countries to international cable networks. The future of the USD550 million cable had been put in jeopardy when the South African government said it would not permit majority foreign-owned cable links to land on South African territory; Neotel has a minority stake in Seacom, with overseas investors making up the bulk of its shareholders. Nevertheless, the telco says it has held discussions with both the government and the regulator and says it is confident that the Seacom project will be allowed to land in South Africa since its fixed line licence incorporates international cable operations. The Seacom cable is scheduled to enter operation in 2009.
Wireless Mobile Telecom Wireless News
- September 10th, 2007
- 12:32 pm
MTN South Africa will spend up to R1.3 billion to build fixed-line infrastructure throughout the country after successfully completing a pilot project between Sandton and Rosebank in Johannesburg.
MTN is entering the fixed-line space to cut operational and customer costs; offer converged fixed-line and cellular services to clients; and meet the corporate demand for internet bandwidth that Telkom is unable to meet.
The massive roll-out plans come four days after MTN Group said it was in discussions to acquire certain assets of Telkom, which is reviewing its 50 percent stake in MTN’s rival Vodacom.
MTN Group chief executive Phuthuma Nhleko said last month that the company would keep an open mind on opportunities to increase its customer base in the corporate market.
MTN has been running a pilot fibreoptic cable between Rosebank and Sandton over the past two months to link stockbroking firms and the JSE. It spent R10 million on the project.
The new 5 000km fibreoptic cable network will stretch throughout major cities and will be completed by 2009.
MTN SA managing director Tim Lowry said on Friday that the demand for data services was “placing huge requirements on our transmission network; this need cannot be met by current suppliers”.
He said MTN would consider partnerships with Vodacom or Neotel, the second fixed-line operator, to build the cable.
The partnership would be on an equal access basis.
The final costs of the cable would be determined after the tender process to identify potential suppliers of equipment was finalised in November.
Vodacom plans a R7 billion investment in building fixed-line cables over the next five years.
Since Vodacom’s plans are yet to take off, MTN is set to be the first cellular operator to become an alternative fixed-line internet data provider.
“It will be a bit of a turf war” as MTN, Vodacom and Neotel started offering the services, said Mike Brierley, the managing director of network solutions at MTN SA. He added that prices would plunge as a result.
MTN will consider whether to sell spare capacity to other players. Under its current licence, it is allowed to provide its own telecoms network for its needs and lease out excess capacity.
MTN Group has experience in the fixed-line business: it has built networks in Ghana and Nigeria and runs a fixed-line business in Uganda.
Asked why MTN was building its own network while it was in talks to acquire assets from Telkom, Lowry said that until “something changes, it’s business as usual … We will decide what to do if the situation changes.”
He admitted that acquiring an existing asset was the quickest way to enter the fixed-line market.
Wireless Mobile Telecom Wireless News
South Africa’s new operator Neotel has agreed to join the Seacom international subsea cable project. Neotel has signed a Cable Development Agreement with Seacom for landing and commercial operations of the international cable system in South Africa. The Seacom project is one of several underway aimed at improving international connectivity and lowering bandwidth costs in Africa. It will connect south and east Africa to India and Europe, with a capacity of 1.28 Tbps. Neotel will own the cable landing station and all facilities within the South African territory and open the system for access by all operators. It will also facilitate a backhaul network to its point of presence in Johannesburg, run in connection with its shareholder and international carrier VSNL. Seacom expects to have the system operational in early 2009.
Wireless Mobile Telecom Wireless News
South Africa’s second national operator, Neotel, has selected Cambridge Broadband Networks as its country-wide wireless backhaul supplier. Under the deal, Neotel is constructing a national backhaul network using licensed 10.5GHz spectrum which will utilise CDMA technology. Cambridge Broadband Networks is providing its VectaStar platform for the rollout. Neotel is also using WiMAX technology for parts of its backhaul network. Pravir Dahiya, Executive Head of Technologies at Neotel, says: ‘As a greenfield operator, it is essential that we accelerate the implementation of the necessary infrastructure required, to enable us to offer a broad portfolio of services across a large geography.’
Wireless Mobile Telecom Wireless News
Telecompaper writes…South African operator Neotel has agreed to acquire Transtel Telecoms for ZAR 230 million. Transtel Telecoms is a spin-off from Transnet, South Africa’s national transport company, offering national telecom services, including to customers outside the Trasnet group of companies. Transtel employs around 500 people, generates around ZAR 400 million in annual revenues and is profitable. The acquisition gives newcomer Neotel expertise in carrier and voice and data services, as well as additional infrastructure and a national presence. Pending regulatory approvals, the takeover is expected to close in 12-16 weeks. Transnet, which sees the divestment as part of its focus on core activities, will retain certain communications operations key to rail and harbour facilities.
Wireless Mobile Telecom
- February 7th, 2007
- 2:37 pm
Telegeography writes…South Africa’s second national operator (SNO) Neotel has awarded Motorola a contract which paves the way for its deployment of a wireless communications network. Motorola is providing radio frequency planning for Neotel in the run-up to its rollout of WiMAX and CDMA technology. The SNO is hoping to use wireless technologies to build a network which will allow it to compete on an even footing with the incumbent operator Telkom. The value of the deal was not disclosed.
Wireless Mobile Telecom
- February 6th, 2007
- 11:35 am
Telecompaper writes…Motorola has won a contract to help South African operator Neotel deploy wireless networks. The contract includes radio frequency (RF) planning which over time will lead to development of various wireless technologies, including CDMA and WiMAX. Neotel is the second fixed-line operator in South Africa and launched services last year.
Wireless Mobile Telecom
- January 15th, 2007
- 1:07 pm
Telegeography writes…India’s leading international telecoms provider Videsh Sanchar Nigam Ltd (VSNL) is in talks to buy Sri Lankan fixed line operator Suntel for an undisclosed sum, according to local newspaper the Economic Times. VSNL recently won international long-distance (ILD) and ISP licences in Sri Lanka, and is hoping to expand its existing inbound carrier business through acquisitions to become a full-service telecoms provider on the island.
Suntel had an estimated 250,000 wireless in the local loop (WiLL) subscribers at the end of 2006. Its portfolio includes basic telephony, pre-paid voice services, corporate data solutions, ISDN, dial-up internet access and xDSL lines. Suntel’s biggest shareholder is Nordic telco TeliaSonera, which holds a 55% stake via holding company Overseas Telecom AB. The remaining shares are split between Sri Lanka’s Metrocorp, the National Development Bank of Sri Lanka, Townsend Ltd of Hong Kong and the International Finance Corporation (IFC, a member of the World Bank Group). Suntel’s net profit for the six months to 30 June 2006 dipped by LKR93 million (USD850,000) year-on-year to LKR290 million (USD2.67 million), while revenues virtually doubled to LKR3.31 billion (USD30.5 million) from LKR1.96 billion a year earlier.
VSNL earns around three-quarters of its revenue abroad. The Tata Group subsidiary is a co-owner of Neotel, South Africa’s second national operator, and has acquired Teleglobe International Holdings Ltd and Tyco International’s global submarine fibre-optic cable network. On its Sri Lankan strategy, a VSNL executive said: ‘VSNL entered Sri Lanka in 2003 and views it as an important, growing market. The company’s ILD voice and data services have been well received and it plans to leverage its success in this market.’
Wireless Mobile Telecom
Neotel soft launches consumer services (South Africa)
