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Neotel goes prepaid

Johannesburg, 22 Jul 2010

Neotel's prepaid vouchers will be available as of 1 August, as the second national operator steps into the high-value prepaid telecoms services arena.

The operator's move into this market was facilitated by its partnership with Blue Label Telecoms, which will handle the distribution of its prepaid vouchers.

According to Neotel's executive head of corporate communication, Wandile Zote, Neotel is entering the prepaid market in hopes of targeting those prospective customers who are reluctant to, or unable to, sign a contract.

“Some people do not wish to enter into a binding contract, and some people prefer having the latitude to their spending per month,” he says.

Having a prepaid solution will also help the operator reach people in a lower-income bracket.

"More than 80% of the South African population purchase airtime on a prepaid basis,” said Blue Label joint-CEO Brett Levy in a statement. “Blue Label Telecoms has over 10 years' experience in this growing space and has built long-term partnerships with our distribution to ensure prepaid products and services are conveniently available for our clients' customers.”

Neotel MD and CEO Ajay Pandey says the company chose Blue Label in order to gain reach into its extensive distribution network, which includes chain stores, garages and independent retailers.

“In SA, Blue Label Telecoms has over 130 000 points of presence," he says.

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