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Neotel quietly signs big deals

By Damaria Senne, ITWeb senior journalist
Midrand, 10 Oct 2007

Neotel has signed a number of large enterprise contracts, including multinational clients, since it launched in July 2006, revealed Neotel head of strategy Angus Hay.

He addressed ITWeb`s 2007 Broadband and Wireless Conference, in Johannesburg, yesterday.

Hay said the second national operator has built thousands of kilometres of backbone infrastructure and has been active in the provision of wholesale service.

Neotel will soon launch its converged voice/Internet offering for the enterprise market, he added.

Hay sought to dispel concerns over whether Neotel actually exists and can deliver services to the market, as well as to provide an update on Neotel`s activities and milestones.

"Neotel is alive and well, and has reached a number of milestones since its launch in July 2006."

Hay would not disclose details, or the value of the enterprise contracts. However, he said the clients include multinationals based outside SA`s borders.

Earlier this year, Neotel landed a R378 million contract to provide bandwidth connectivity for government`s R454 million next-generation network. Business Connexion holds the rest of the contract and will deploy the government common core network.

Live network

Hay said Neotel has built over 8 000km of national backbone since its launch. The company also acquired another 1 300km of infrastructure, based in metros. This was acquired from Transnet through the acquisition of its telecommunications assets.

The network is live, the optical transport is switched on, soft-switches are on and Neotel interconnects with local telecoms providers, Hay said. "If you`re a wholesale customer, you`ve seen our backbone already."

Hay adds that Neotel is rolling out another 2 000km of fibre in metros. However, he would not provide specific details on the project`s progress.

Soft launch

Neotel also built new fibre networks connecting its major enterprise clients, as it did not want infrastructure that was already available, he said. The company is in the "ramp up" phase, preparing to officially launch services to the wider enterprise market.

MyADSL reports that the launch will be held in November. "Neotel confirmed that a function is planned for 15 November, which will be the next leg of the Neotel journey for enterprise customers," it states.

Hay also noted that Neotel is still engaged in consumer trials, which involve the use of CDMA technology to provide converged services. Once the trials are completed, Neotel will adopt a phased, soft launch and will not go with the "big bang" approach, he explained.

This is in contrast with Noetel spokesman Mala Suriah`s previous statement to ITWeb that the launch would be the "biggest event Neotel has ever had" and that "people will know what Neotel stands for after the launch".

Related stories:
Neotel promises 'big bang`
Big year ahead for Neotel
Neotel disillusions Mlambo-Ngcuka

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