Johannesburg - Neotel, South Africa's second network operator, has launched its first dedicated broadband offering, NeoFlex Data.

The product, styled as a "multi-user internet solution", is aimed at small office and home users and expected to compete with Telkom's ADSL.

In 2008 Neotel launched NeoConnect, a bundled telephony and data offering. The difference between NeoConnect and NeoFlex Data is that NeoConnect was a single-user solution. As a result, it could not handle the internet and telephone calls simultanesouly. NeoFlex Data is the network's first multi-user, dedicated broadband solution.

How it works

NeoFlex Data uses a device that serves as a modem to connect to the Neotel network, while also providing a wireless network and Ethernet (network cable) ports to connect all the computers in a home or office.

The device has an internal battery to stay connected in power outages and can be quickly deployed by users themselves without having to wait for a network installation.

The service provides peak speeds of 3.1 megabits per second (mbps) for downloading and 1.8 mbps for uploads. Neotel guarantees speeds of 450 to 900 kilobits per second for download.

What it costs

Pricing for NeoFlex Connect is highly competitive on 24-month contracts, with the entry-level package available for R699 per month. This includes 10 gigabytes of data.

There is also a 15-gigabyte option for R899 per month. Both packages include VAT and device fees.

In comparison, Telkom line rental on a 512kbps ADSL connection is R326 per month and a 10-gigabyte connection account from an ADSL service provider such as Axxess goes for R699 per month. This makes NeoFlex Connect the cheapest broadband solution available in South Africa, when comparing speed and bandwidth caps.

Says Mukul Sharma, executive head of Neotel's consumer business unit: "These packages are extremely cost-effective and should easily cater for the internet requirements of small businesses and high-end consumers.

"If customers reach their data cap, our out-of-bundle rates are charged at a nominal fee of 8c per megabyte. With the 24-month contract you are getting the best of both worlds, as you have the benefit of being able to pay off your device over the 24 months with no upfront payment required."

Should consumers wish to cancel their contracts, there are no penalties; they simply have to settle the outstanding amount on their device, says Sharma.

"In addition, this service can be used anywhere in Neotel's coverage area, which means that users can open new offices or relocate existing ones in a quick and hassle-free manner," he says.

With Neotel's consumer broadband services now available, all eyes are on Telkom to see how it reacts to announced pricing.

- Fin24.com