Signed, sealed, almost delivered

By Nicola Mawson for Neotel
Johannesburg, 02 Mar 2007

SA's second national operator, Neotel, has awarded the first batch of contracts that will allow it to build its core network to provide national services later this year.

Companies are now eagerly awaiting news of further components of the network, expected to be revealed shortly.

So far, Neotel has handed out five contracts for aspects of its core network. The latest contract, for an undisclosed sum, went to Siemens Telecommunications to build the core backbone and foundation of Neotel's Internet Protocol (IP) network.

The IP core network will enable Neotel to provide high-performance voice, data and video services from a single IP-based network, says Mark Van Vuuren, MD of fixed networks at Siemens Telecommunications Southern Africa.

Siemens Telecommunications account director Paul Divall says the company will be responsible for the provision of the product, as well as the countrywide installation and integration of Neotel's IP framework. It will also be responsible for the management of Neotel's IP services, he adds.

Implementation of the contract should be completed by the end of March, as a lot of the groundwork was done before the contract was signed, Divall says.

Signed and sealed

Neotel previously said it expected to spend R11 billion over 10 years.

The company says it has "signed and sealed" all the contracts relating to building its core network. A spokesman says the company will partner with other companies to add additional services to the network.

<B>Contracts to date</B>

Siemens: The IP core, IP network management system and metro dense wavelength division multiplexing components of the Neotel Network.
Juniper: Siemens will provide the IP core network based on Juniper Networks M- and T-series routers.
Motorola: Radio frequency planning for the CDMA and WiMax network.
Dimension Data and Cisco: These companies will provide the metro Ethernet portion.
Huawei: Preferred supplier of core network infrastructure and the associated services, including the soft switches and associated network equipment.

The "foundation of the house", says the spokesman, will support enterprise, voice, data and national services soon, with retail offerings expected in mid-year.

Neotel has also awarded contracts to Siemens Telecommunications, along with partner Juniper, to provide the IP core network and Motorola to provide radio frequency planning for WiMax and CDMS.

Cisco and its partner Dimension Data have also been contracted to provide a metro Ethernet framework, with Huawei as preferred supplier of core network infrastructure and associated services.

"These agreements contribute significantly to the initial roll-out of Neotel's network. We are rolling out our national network and, within the next month or so, we will launch the first national services. We already have live international services for a number of the other providers in the industry."

Fierce competition

Divall says Siemens Telecommunications is still waiting to hear from Neotel regarding the WiMax infrastructure contract. Motorola previously said it also bid for that contract. "Competition is fierce when bidding for Neotel business because everyone sees them as the next big operator," he adds.

Neotel MD Ajay Pandey says the company's partnerships are more than commercial contracts. He notes the company's partners will engage local small and medium enterprises, as well as black economic empowerment groups, in the operational activities of the relevant agreements.

A significant focus will also be placed on the training and development of previously-disadvantaged students in the ICT sector, he adds.