Neotel launches home phone service

23 October 2008

Neotel has launched a home phone service in South Africa’s major metropolitan areas, making use of the company’s fixed-wireless network – with local peak rates to all landlines set at almost half the price consumers are currently paying.

“We believe that we have hit the nail on the head with this product, particularly in light of the current economic conditions,” Neotel Consumer Business Unit head Mukul Sharma said in a statement this week.

“Consumers are feeling the pinch of global and local economic pressures and are continuously looking to save costs, but still stay in touch.

“While the product focuses on providing consumers with high-quality voice, they also have the option of utilising data, sms and e-mail, which is provided as part of the service,” Sharma said, adding that a further benefit of Neotel’s home phone was that the service was delivered via a fixed-wireless product.

“This eliminates the risk of losing your service due to copper [cable] theft.”

Two packages

Neotel’s home phone is available in two packages, the first of which allows the consumer to purchase the phone upfront for R599, followed by a monthly service fee of R99.

“During the course of 24 months, a usage discount of up to R25 will be given back to the consumer every month,” Sharma said. “This effectively means that consumers could be reimbursed for the full purchase price of the phone.”

The second package does not require an upfront payment for the phone, and is charged at R199 per month.

“On this package, users receive 1 000 free Neotel-to-Neotel minutes and 200 free sms within Neotel’s coverage area, [with] the free minutes [being] applicable for local, regional and national calls,” Sharma said.

Both packages operate on true per-second billing for all calls, from the first second onwards.

Price differentiator

According to Neotel, a key differentiator of the company’s home phone offering is the call rates.

“At 34 cents per minute for local peak landline calls, and 17 cents per minute for local off-peak landline calls, communicating will become more affordable for the consumer,” Sharma said.

There is no differentiation between Neotel-to-Neotel peak and off peak rates, which are charged at 17 cents per minute for local calls at all times.

“Neotel’s home phone is a home phone that offers impeccable voice quality, delivery within 48 hours of successful order completion and no installation required,” he said.

SAinfo reporter

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