SA's second national operator, Neotel, aims to hit R3 billion in revenue this year as its growth plan starts to pay off, says MD and CEO Ajay Pandey.
Pandey says the operator is confident of achieving at least R2.5 billion revenue, as it has not yet passed the half-year mark to September and is on R2.2 billion on an annualised basis. Last year, it was talking about reaching R1 billion, he says.
The company is still targeting 15% of Telkom's fixed-line base, and is also expanding its services more aggressively into the consumer segment.
Pandey says Neotel aims to have 15% of the market by the time the company turns five. This is its second year of operation. “We are becoming a player of significance,” he adds.
Neotel has opened a consumer outlet in Fourways, north Johannesburg, and has other retail outlets planned for Pretoria, Durban and Cape Town. “We should be able to further expand that footprint.”
It has also signed up 30 000 subscribers so far, of which about two-thirds are data customers, with the balance having opted for voice services, says Pandey.
However, rolling out base stations, of which it now has 200, was not without setbacks. Pandey explains there were issues with permission along some of the coastal regions, especially the Western Cape. “We can't shift Table Mountain.”
Its data card sales, however, are promising. Neotel launched the product last month and already has 1 000 subscribers.
Its connection to Seacom, which has resulted in a 25% pricing drop for international bandwidth, is also bringing in new customers. So far, companies such as Internet Solutions and Gateway have a point of presence at the company to take advantage of its direct link with the undersea cable.
Pandey adds that its 1 000m2 data centre will soon be expanded to allow for extra capacity, and it will shortly start construction of a Cape Town centre. “We are shifting gears and moving in the fast lane.”
The unlisted company has spent more than R3.5 billion on infrastructure, but Pandey does not see the need to raise more debt. The company recently raised R7.5 billion and is funding its roll-out through debt and equity.
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