As the local telecommunication market is tipped for healthy growth over the next few years, Neotel is already outpacing the market.
According to recent reports by research house BMI-T, the market is set to increase at an average rate of 7.9% between 2009 and 2013. However, growth in Neotel Business, previously known as its Enterprise Business Unit, has already exceeded these market growth figures.
“Neotel Business grew its revenue by 600% during Neotel’s past financial year and literally tripled its customer base,” says Stefano Mattiello, chief sales & customer service officer at Neotel.
This has resulted in a broader go-to-market strategy, he adds. “While the team continues to focus on the top tier of the market, it has now also started making inroads into the next tier of clientele."
Additional growth for the Neotel Business division included the introduction of more strategic partners as well as a significant increase in products and services.
“Over the past year we have introduced products and solutions such as Metro-e, WiMAX and managed services and will continue to expand on these for our customers,” says Mattiello.
Neotel has also launched a data centre in Johannesburg and construction of the Cape Town one is underway.
“The staff complement within this business division has doubled over the past year to ensure that we can provide our growing customer base with the service they require,” says Mattiello.
Current clients include blue-chip organisations operating in South Africa, ranging from financial services to government departments, ISPs and retail customers.
“In future, it remains our strategic intent to be the first to market with key services and solutions,” says Mattiello. “We are confident that the new solutions we will be bringing to market during the course of the next year will illustrate the true value of broadband to a market that has often been led to believe that what they are experiencing is ‘the best there is’."
Neotel has also finalised the backhaul agreement with Seacom, allowing for capacity to terminate in Johannesburg rather than Mtunzini, which will have a big impact on the costs of capacity.
“Currently, the cost of taking capacity from Cape Town to Johannesburg is the same as taking capacity from Cape Town to London,” says Mattiello. “With this new agreement in place, the capacity will terminate in the Neotel data centre in Midrand, which means Neotel can make the capacity more readily available to its customers."
Other service providers will be able to either meet Neotel in its data centre in Midrand to purchase capacity, or Neotel can forward it on to them.