The Future of Fibre Networks in South Africa: Trends and Opportunities
The Fibertime Deal: A Game Changer for Townships
The recent approval by South Africa’s Competition Commission of a deal between Fibertime, Refiber, and Onepath Investments has sparked significant interest in the fibre network sector. This deal involves Refiber and Onepath acquiring last-mile dark fibre networks that Fibertime plans to deploy across the country. This strategic move is poised to revolutionize internet access in South African townships, particularly those in need of affordable and reliable connectivity.
Understanding the Deal: What It Means for South Africa
The deal primarily involves the acquisition of dark fibre infrastructure, which includes the infrastructure from customer premises to a localised point of presence. This infrastructure is crucial for providing high-speed internet services to residential and business customers. The target assets are set to be deployed in over 280 townships, excluding the two townships where Refiber and Onepath currently own dark fibre infrastructure.
The Impact on Internet Accessibility
Fibertime, known for its R5 per day uncapped fibre product, has already made significant strides in connecting homes to its network. By May 2024, Fibertime had connected 9,100 homes, with 7,800 homes in Kayamandi and 1,300 homes in Gqeberha. This deal is expected to accelerate the deployment of fibre networks, potentially connecting up to 1.8 million homes to the internet. This expansion will not only enhance connectivity but also bridge the digital divide in South Africa.
The Role of Finnfund and Investment
Finnfund, a Finnish development financier, recently made a €2-million (R39.6-million) follow-on investment in Fibertime Group. This investment is aimed at supporting Fibertime’s ambitious goal to connect up to 1.8 million homes to the internet. The Fibertime Group, which includes Fibertime and VulaCoin, a blockchain-based platform for selling prepaid airtime, is well-positioned to leverage this investment for growth and expansion.
Key Players: Refiber and Onepath Investments
Refiber and Onepath Investments are significant players in this deal. Refiber is jointly controlled by two firms, while Onepath is controlled by Refiber. Both entities are involved in the acquisition and leasing back of network infrastructure, including internet fibre networks. They lease this infrastructure to fibre network operators who provide internet fibre services to residential and business customers. The acquiring group already owns two fibre networks in the Eastern Cape, indicating their established presence in the market.
The Future of Fibre Network Deployment
The approval of this deal by the Competition Commission suggests a positive outlook for fibre network deployment in South Africa. The Commission has recommended that the Competition Tribunal approve the transaction unconditionally, citing that it is unlikely to substantially lessen or prevent competition in any market and does not raise significant public interest concerns.
Pro Tips: What to Watch For
- Regulatory Approvals: Keep an eye on the Competition Tribunal’s final decision on the deal.
- Investment Opportunities: Look out for additional investments in fibre network infrastructure.
- Technological Advancements: Stay updated on the latest technological advancements in fibre networks.
Did You Know?
Fibre networks are known for their high-speed and reliable internet connectivity. They are increasingly becoming the preferred choice for both residential and business customers due to their superior performance compared to traditional copper-based networks.
FAQ Section
Q: What is dark fibre infrastructure?
A: Dark fibre infrastructure refers to unused optical fibre that is already installed but not currently in use. It can be leased to service providers to offer high-speed internet services.
Q: How will this deal impact internet access in South African townships?
A: The deal aims to significantly enhance internet access in South African townships by deploying last-mile dark fibre networks, potentially connecting up to 1.8 million homes to the internet.
Q: What role does Finnfund play in this deal?
A: Finnfund has made a €2-million (R39.6-million) follow-on investment in Fibertime Group to support its goal of connecting up to 1.8 million homes to the internet.
Q: Who are the key players in this deal?
A: The key players include Fibertime, Refiber, and Onepath Investments. Refiber and Onepath are involved in the acquisition and leasing back of network infrastructure, while Fibertime is known for its affordable uncapped fibre products.
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