Altech, Neotel pen channel deal

By Candice Jones, ITWeb online telecoms editor

Johannesburg, 28 Aug 2008

Altech Autopage Cellular and Neotel put pen to paper yesterday in a deal that gives Altech the rights to distribute Neotel's consumer products.

Altech Autopage Cellular MD Stephen Blewett says Altech has been eyeing Neotel as a possible business opportunity since the launch of its commercial services last year. "We have been in serious discussions with Neotel for around six months."

Blewett says the deal would not have been worthwhile until Neotel had introduced both commercial and consumer services.

Altech Autopage will, for the time being, only carry consumer services from Neotel; however, Blewett says the corporate offerings will be introduced at a later stage. According to Blewett, Altech's consumer customers represent around 70% of the business.

Autopage has almost a million subscribers and 150 franchise stores, which could give Neotel the consumer boost it is looking for. Figures in April showed Neotel hosted in the region of 300 consumer customers, and around 150 enterprise clients.

"We are pleased to announce that we have appointed Altech Autopage Cellular as our preferred consumer distribution partner from 1 October," said Mukul Sharma, executive head of the consumer business unit at Neotel, a few days before the companies signed the deal.

The appointment of Altech Autopage Cellular as its premier telecommunications channel partner comes shortly after Neotel appointed Postnet SA in May.

"We've always offered the customer a variety of choices from networks, tariffs and devices, and we have consistently, and will continue to offer the most competitive prices to the consumer. Our distribution agreement with Neotel fits perfectly with this business strategy," says Altech CEO Craig Venter.

Venter says: "We are confident the addition of the Neotel products will drive incremental revenue and profitability within Altech, with constant revenue streams being derived as the Neotel network continues its coverage expansion drive."

Blewett says the company will bundle the Neotel services with various other offerings, as is the traditional strategy for the company. "We will bundle the CDMA offering with something like mobile voice, with the best possible price point for consumers."