Neotel launches LTE – Broadband becomes more affordable for small business

| 30 August 2013

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Neotel has beefed up their flagship broadband service by launching NeoBroadband powered by LTE in Gauteng.

The new service is aimed to cater for the needs of small and medium sized business and large companies. It’s an interesting move from Neotel as they have rolled out LTE on the 1800 MHz band spectrum which has been optimised for Internet and data solutions.

They already have access to 15 000 km of national long distance fibre and 8 000 km around metropolitan areas all connected to the five undersea cables around South Africa.

Although it is a wireless technology the installation is a “fixed” one. Neotel will come in and install a fixed aerial which then attached to the router in your business. The reason for the installation being a fixed one is to provide a consistent reliable experience to customers.

Although it is “fixed” the aerial can be unplugged and the LTE service can be used at another location provided that there is coverage.

Neotel CEONeotel’s LTE service will initially cover most parts of Gauteng with a deployment of 50 base stations. Sunil Joshi, MD and CEO of Neotel, said that over the next 18 months coverage will be extended to other major cities in South Africa.

Gauteng is a very attractive market for telecoms. Around 60% of the South Africa’s broadband connections are situated in this province making it a very lucrative business market that is growing very quickly. According to Neotel, the technology and broadband market in South Africa is worth approximately R5.2 billion in 2013 and growing at 5.5% per year.

Initially there will be three offerings on Neotel’s LTE service.
• 2 Mbps R999-00
• 5 Mbps R1 799-00
• 10 Mbps R2 899-00
• Installation R1 500-00

Packages for higher speeds of 20 Mbps, 40 Mbps and 100 Mbps will also be introduced in the coming months.

These services are uncapped and unshaped which means that you are getting maximum throughput. The contention ratio, which basically means how many connections you can have connected to one internet pipe, will be 25:1. The more connections you have the more congested the traffic becomes and a ratio of 25:1 puts a service in the premium category.

Neotel LTE Router

Neotel’s uncapped packaged come with fair usage restrictions to prevent abuse.
Speed Soft Cap Usage Limit Reduced Line Speed:
2 Mbps 268GB 512Kbps
5 Mbps 671GB 2.5Mbps
10 Mbps 1342GB 5Mbps

Telkom earlier this month launched their new business uncapped offers and have also introduced some very competitive pricing on ADSL.

Telkom has uncapped premium packages ranging up to 40 Mbps
• 1 Mbps R595
• 2 Mbps R995
• 4 Mbps R1 795
• 10 Mbps R2 895
• 20 Mbps R3 895
• 40 Mbps R5 095

There are also lower cost options that basically softcap users when you reach your limit.
You will still have Internet access but your speed is throttled.

• 1 Mbps R249
• 2 Mbps R299
• 4 Mbps R429
• 10 Mbps R809
• 20 Mbps R1 799
• 40 Mbps R2 999

Broadband is become affordable for small business and this great news. Pricing of broadband connectivity has come down at a rapid pace but we are still expensive when comparing South Africa’s broadband costs to those worldwide.

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