South African Fibre Networks: Evaluating the Future of FTTH Pricing and Expansion in 2024

The landscape of fibre-to-the-home (FTTH) connectivity in South Africa is at a crossroads as the country's major fibre network operators (FNOs) indicate a complex forecast for 2024. While FTTH prices on a per-Mbps basis have plummeted since the pandemic-induced surge for higher bandwidth, the future of pricing remains uncertain, as industry leaders share their strategies for navigating economic challenges and community needs.

Vumatel, one of the providers shaping the sector's trajectory, expects shifts in FTTH per-Mbps pricing, although whether this will entail increases or decreases remains ambiguous. The FNO emphasizes its commitment to extending high-quality Internet services to densely populated lower-income areas, as demonstrated in regions like Alexandra and Kayamandi. Its investment plan focuses on infrastructure upgradation, expanded capacity, and the incorporation of Disaster Recovery Plan (DRP) capabilities to ensure resilient and continuous service. Moreover, Vumatel's customer service will benefit from the implementation of a new Salesforce CRM system, aiming to enhance support for Internet Service Providers (ISPs) and end-users alike.

Facing rising operational costs amid load-shedding, inflation, and adverse exchange rates, MetroFibre forecasts that FTTH retail prices may undergo inflationary increases similar to other goods and services in South Africa. While continuing to pursue affordable package pricing, the operator revises its strategy, slowing expansion to bolster network uptake in existing areas and intensifying focus on service quality and customer support.

Frogfoot Networks pledges to connect thousands of households in Vrygrond and Philipi through its Rise prepaid FTTH service by August 2024, engaging community members in infrastructure buildup and fibre operations. Despite market pressures, the operator intends to match consumer demand with well-priced, market-specific offerings while also striving to provide value to ISPs and end-users across their existing footprint. This commitment to service reliability and diversifying market engagement encapsulates Frogfoot's 2024 roadmap.

Octotel, an FNO centered in the Western Cape, does not foresee a reduction in core product prices for the coming year. It stresses that creating new products tailored to end-customer value propositions will drive industry trends. Octotel plans to maintain its network rollout rate and asserts its aspiration to remain a top FNO choice within its regional stronghold.

Evotel's discourse similarly centers on added value amidst economic headwinds, eschewing precise speculation on pricing movements. The operator is invested in enhancing its service delivery and network monitoring to ensure swift fault resolution, embodying its "walking a mile in the customer’s shoes" ethos. Although specifics on expansion remain under wraps, Evotel's focus on reliability and community contribution remains pivotal.

Zoom Fibre anticipates price stabilization to maintain quality service levels. Prepaid product expansion is on the agenda, reflecting a drive to widen accessibility and nurtured user diversity. Details on strategic rollouts are pending finalization, but the company remains resolute in delivering consistent high-speed connectivity.

Herotel, a closed-access FNO, challenges the notion of declining FTTH prices, reporting increases instead. Its direct customer dealings impel careful price strategy consideration amidst market factors like inflation and foreign exchange rates. Beyond pricing, Herotel is preparing to introduce Hero Business for dedicated business fibre solutions, while also exploring expansion opportunities for 2024.

Collectively, these perspectives from South Africa's predominant FNOs sketch a year ahead where FTTH pricing and service quality will hinge on a blend of economic resilience, community engagement, and strategic product innovation. While end-users may not anticipate significant price drops, the promise of improved connectivity's reach, especially within marginalized communities, kindles hope for a more equitably connected South Africa.