Business IdeasNeotel to expand network in South Africa
Telecom services provider Neotel, which is majority owned by Indian conglomerate Tatas, is expanding its network across South Africa.
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Neotel is now concentrating on growing the network across the rest of South Africa, company"s Business Support Service Executive Head Imran Abbas told a Johannesburg-based daily Business Report.
At present, Neotel has a huge presence in South African metros such as Durban, Cape Town.
The company is currently spending nearly $1-billion in partnership with the local cell phone company, MTN, to build a 5,000-km national long distance network to increase its coverage in the country.
Moreover, the company is expanding its operations to neighboring countries in partnership with the South African state-owned infrastructure provider, Infraco.
Abbas said Neotel, which has access to Seacom"s undersea cable and Tata Communications" global network, had signed inter-connection agreements with operators in Zimbabwe, Zambia and Tanzania to allow its existing customers to communicate internationally.
"Interconnect is part of building any telecom network. We have therefore embarked on a proactive strategy to provide interconnect into those countries, to offer an alternative to the incumbent," said Abbas.
Neotel, in which Tata Group holds 56 per cent stake, had spent nearly $2-billion over the past decade in South Africa laying fibre in major areas to provide fixed mobile products to clients.