I attended a presentation in Cape Town this weekend, hosted by Nexus Business, where a team of sales personnel from Neotel were showcasing their companies products and offerings to the South Africa market. I must say I was highly impressed with what Neotel have to offer the market and what stood out the most was the price of the products and services Neotel has to offer. Telkom and the other mobile phone operators are in for a tough time. Gone are the days we are going to be paying a fortune for telecom costs in South Africa.

Neotel is basically the second fixed line operator in South Africa. Telkom had been the only operator for years and thus enjoyed a great monopoly. Now there is competition and this competition has come with a bang! Neotel currently do not have coverage in all parts of South Africa but over time they are planning to roll out new infrastructure so that everyone in South Africa who wants to use Neotel can do so.

The beauty of Neotel has to lie in their pricing. Their entry level package costs R399 a month and this includes: 2.5GB of Internet data, 1000 free on net minutes which are free minutes to call from a Neotel to Neotel number, 50 free SMS’s a month and you get the Neotel device which is the phone which allows you to do all this. It basically looks like a normal desktop phone. It can be used as a stand alone and thus you can make and receive calls or you can also connect it to your computer and also use it to connect to the Internet. So basically, Neotel are offering a converged product where you get your Internet, voice calls and SMS’s on one bundle. Now if you compare this R399 a month offering from Neotel to a Vodacom option; a 2GB data bundle from Vodacom costs R389 and that is just a bundle without the monthly cost of the data card or cell phone. Now for R10 more you can get 0.5GB more of data, 1000 free on net minutes, 50 SMS’s and the device is included.

The Neotel product also allows you to make voice calls to other networks i.e. you can call the mobile networks and Telkom all for a fraction of the costs we have been used to be paying.

We have been paying some of the highest telecoms bills in the world here in South Africa. Businesses have had restrictions due to the highest costs of making phone calls and connecting to the Internet. Now if Neotel can come into the market and deliver a high quality product at an affordable price, not only will their other competitors loose out but the consumer will benefit a great deal.

For more information about Neotel, you can visit their website on www.neotel.co.za

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