The highlight for Neotel in 2014 was the company’s 8th anniversary in August, marking another year of innovation and growth. This is according to Neotel CEO and MD Sunil Joshi.
Joshi said Neotel grew from 2 people and a laptop 8 years ago to a company of almost 1000 people in 2014. The company also experienced a year on year revenue growth of 23%.
Another highlight for Neotel was concluding a partnership with the Western Cape Government and SITA to provide broadband services to 2000 buildings across the province, and Project Isizwe in Tshwane.
“All of this recognises Neotel as a partner with unique capabilities to deliver large-scale telecoms projects to enable service delivery and increase broadband penetration,” said Joshi.
Looking at the industry, Joshi said that one of the highlights was the ruling on call termination which saw a rational and sound underpinning to the glide path.
Another good decision, he said, was to introduce an approach to asymmetry for both mobile and fixed line operators – an innovation which was sorely lacking in the previous regulations.
Challenges in 2014
Joshi said that the biggest challenge in the SA telecoms space is increasing competition and margin pressures.
“This is forcing all companies to innovate and improve or consolidate – which we support,” he said.
However, said Joshi, it is now another year passing without resolution to regulatory processes like Local Loop Unbundling and the assignment of high-demand spectrum – both of which have a negative impact on competition in the market.
What to look forward to in 2015
Neotel has pending approvals with the Competition Commission and Icasa with respect to the transaction between itself and Vodacom.
“We look forward to that process concluding early in 2015. The authorities (regulatory and competition) are considering the respective applications before them and we await a favourable outcome of those processes,” said Joshi.
“We are working with them to provide our views and rationale for the transaction. We believe this merger is a positive step for increasing competition in South Africa and will provide significant benefits to customers – business and consumers.”
What keeps the Neotel CEO awake at night?
Joshi said the question as to how Neotel continues to remain relevant to its customers by delivering innovative and cost-effective solutions was his biggest challenge.
When looking at South Africa, Joshi is concerned about slowing economic growth, growing unemployment, power cuts, policy decisions, and the impact all of this has on the economy.
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Source : https://mybroadband.co.za/news/business/115491-neotel-8-years-old-and-going-strong.html