Neotel slashes cost of calls to mobiles by 23%, undercuts Telkom on wireline calls

Neotel, South Africa’s second national operator (SNO), has slashed the cost of calls to mobile phones by 23% in an effort to improve its market share. The lower rates – which were prompted by the Independent Communications Authority of South Africa’s (ICASA’s) ruling on termination fees last year – came into effect on 1 March. Neotel’s Dr Angus Hay commented: ‘Neotel continues to offer the most cost effective home phone service for consumers. For as little as ZAR99 (USD14.4) per month rental, you can get a wireless phone – no copper wires, no waiting for installation – and these new rates make it even more compelling. You can even keep your old landline number’. According to Neotel, calls to the MTN or Vodacom network will now cost ZAR.095 (plus VAT) during peak hours, and ZAR0.85 (plus VAT) during off-peak hours. Calls to Cell C and 8ta will cost ZAR1.20 (plus VAT) during peak hours, and ZAR0.96 (plus VAT) during off-peak hours. Hay continued: ‘At standard rates, it is still cheaper to call a Telkom line from a Neotel phone than from a Telkom phone, and all calls between Neotel subscribers countrywide are free after hours. And now, Neotel is able to offer the best ever prices for calls to mobile phones as well’.