Wednesday, 25 February 2009

O-Tel launches MVNO service in South Africa - South Africa

O-Tel, a licensed national telecom operator, launched its MVNO services last week in South Africa. O-Tel will use networks of existing operators by using Vodacom's 3G networks or Telkom’s ADSL network. The company will compete against dominant players, such as Vodacom and MTN, in South Africa's emerging telecom market. O-Tel will leverage on affordable subscriber tariffs.

Commenting on the new launch, Mohammad Patel, Chief Executive Officer of O-Tel, said: “O-Tel can provide anyone within Telkom ADSL or Vodacom 3G coverage with a telephone line for ZAR 99 (USD 9.88) per month with no contract necessary. Unfortunately few of the almost 533 companies to which licenses were awarded will be able to take advantage of their new-found favourable position to challenge the existing telecoms status quo because many of them have chosen to build their own networks.”

O-Tel received its individual Electronic Communication Network Services license from the Independent Communications Authority, South Africa’s media regulator, in January this year.