* Looking for FY revenues of more than $400 million
* Aims to capture 15 percent of market share on 5th year
* Says favours low interconnection fees
By Phakamisa Ndzamela
JOHANNESBURG, Sept 22 (Reuters) - Neotel, the South African fixed-line operator set up in 2006 to compete with dominant former monopoly Telkom, said it hoped to triple revenues this year as customer numbers rise quickly.
Unlisted Neotel, which is controlled by India's Tata Group, said it was targeting 3 billion rand ($403.8 million) in revenue for the year to end-March 2010, after so far collecting more than 2.2 billion, double the amount it reported last year.
Neotel Chief Executive Ajay Pandey said the company had reached 30,000 customers and hoped to cover more than 50,000 customers before the end of the year.
"What is important is that this milestone in terms of numbers signifies growth," Pandey told a press conference, adding that the numbers positioned Neotel ahead of smaller competitors, making it South Africa's second-largest fixed-line operator.
"Essentially we are becoming now a player of significance in more than one way," Pandey said.
The group's aim is to get 15 percent of market share by the time it reached its fifth year of operation.
Pandey said Neotel had invested in excess of 3.5 billion rand in infrastructure.
He added that its partnership with mobile operators Vodacom and MTN, which involves developing a 5,000 km fibre-optic network, was working well.
Neotel said it was a strong supporter of lower interconnection fees. Mobile phone and telecoms operators charge 1.25 rand per minute in peak times for their interconnection fee, a charge to enable calls to be transmitted from each other's networks.
The South African government plans to hold public hearings next month to demand that mobile and telecom operators reduce interconnection fees, in an attempt to lower telecoms costs that have impacted the country's growth.
"We are in favour of lowering down rates, however it should be done through a process," Pandey said.
"My feeling it's not only about lowering the costs. We also need a mechanism to ensure that these reduced costs are passed through to the consumer on the street." ($1=7.429 Rand) (Editing by Jon Loades-Carter)