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Fibre-to-the-home (FTTH) connectivity in South Africa has witnessed significant growth in 2022, driven by higher bandwidth requirements following the pandemic. As a result, Fibre Network Operators (FNOs) have engaged in a price war, but cheap doesn’t always mean cheerful.
With approximately seven major fibre networks in South Africa, including Vumatel, Openserve, MFN, Frogfoot, and more, choosing the right FNO is crucial to ensure seamless connectivity for future residents. We chat with three of the FNO’s to get some invaluable insights.
Find the right coverage
Despite having several key players, according to JP Terblanche, Head of Acquisitions at Frogfoot, one of the country’s larger FNOs, the South African FTTH market is by no means saturated and there is untapped potential. Most FNO’s began by targeting higher LSM areas of South Africa, leaving approximately 17 million households without FTTH connectivity in the lower LSM areas, which is now fast becoming a central focus.
‘When property developers identify pieces of land, part of their due diligence should be to determine which FNOs have a presence in the area and evaluate the feasibility of connecting their development to the existing coverage. We have done quite a few proposals where the development is just too far away from the existing coverage area. In some cases, the costs to do a route build and connect the development is often too high and then the project becomes unfeasible for the FNO leaving the property developer stranded,’ he says.
Although there are alternative solutions such as microwave backhauls, these have their own shortcomings when it comes to stability and speed. Good research and planning are therefore the crucial first step to ensure that the fibre deployment is fast, the network stable, and that the infrastructure is accommodated during the design process.
‘People often forget that fibre is a physical deployment and should be taken into consideration when designing and budgeting and property. Developers should plan and install sleeves for fibre the same way they plan for other services like electricity, water, and sewage. The last thing you want to see on a brand-new development is conduit running up the walls or the ONT and router has not been housed out of sight,’ adds Terblanche.
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Know all your options
If the property developer finds himself in a position of having more than one FNO in the vicinity, then Mary Ogilvy, Head of Fibre at Vox Telecom suggests considering other options when deciding. This includes checking if the FNO has sufficient redundant backhaul to meet the needs of the residents’ current ability and whether it can scale up for future growth and increased bandwidth demands.
Comparing pricing structures and considering the affordability and fixability of the service is also crucial as is good customer service for addressing any issues or concerns that may arise during installation, maintenance, and usage of the service.
‘The long-term benefits, such as increased property values, resident satisfaction, and future-proof infrastructure, make it FTTH a worthwhile consideration for all developers looking to provide a modern and connected living experience. The trick is making sure you have the right supplier that meets your development needs,’ she says.
Developers should spend time gauging customer satisfaction with the quality of service provided by the FNO and the associated ISPs. Find out how existing estates feel about the service they are getting from the FNO and if they and their residents are happy with the quality of the network.
Open vs. close
Except for the coverage, developers should also determine if the FNO has an open or closed access network. Evotel for example is an open-access FNO, which means they have several ISPs on their network, each offering different speeds and cost packages for various needs, so customers have a choice.
‘A closed-access FNO only has one ISP on their network, and you can only use that ISP for data and internet services. You don’t have any choice in the matter. We believe that our open-access network with a choice between 48 trusted ISPs is a better option,’ says Bradley Bekker, General Manager at Evotel.
Overcoming obstacles
While deploying fibre infrastructure in a housing development may involve initial investment and coordination efforts, the benefits far outweigh the challenges. Regular communication and project reviews with your chosen FNO are essential to address potential obstacles. Challenges such as construction delays, regulatory issues, and infrastructure interference can be mitigated with proactive planning and experienced FNO partnerships.
‘It is not easy to provide an exact timeframe for installation as there are several variables involved and things can go wrong but it is important to engage with your chosen FNO early in the development to understand timelines, requirements, and potential constraints,’ concludes Ogilvy.
