Vodacom’s big fibre network expansion could take on Vumatel and Openserve

Vodacom is planning big expansions for its fibre network, bringing coverage to more homes and building out its infrastructure.

The company currently offers a number of fibre products and packages, both on its own network and other fibre networks, including Openserve, Vumatel, Frogfoot, and Metro Fibre Network.

Vodacom offers uncapped and capped fibre-to-the-home products, with speeds of up to 100Mbps and a choice of 12-month, 24-month, or month-to-month packages.

In addition to its consumer offering, Vodacom offers enterprise fibre solutions, such as its Broadband Connect Fibre product.

This offering provides high-speed Internet access to a range of businesses, from small startups to larger SMME’s with high bandwidth requirements.

At the company’s interim results presentation for the six months ended 30 September 2018, Vodacom said the company’s fibre division has seen strong growth.

The company’s “Own the home” fibre rollout strategy has seen it double the number of its fibre connections in the six-month period.

Vodacom has also more than doubled its residential coverage and now boasts more than 200,000 homes passed by its fibre network.

Vodacom’s impressive fixed revenue growth is a testament to this, and the company said it expected to see continued growth in this sector.

Fibre plans

In an interview with MyBroadband, Vodacom CEO Shameel Joosub said the company is looking at various options for rapid expansion of its fibre network.

These options include everything from acquiring existing fibre infrastructure networks to investing heavily in its own infrastructure and building out a greater pace.

“We are looking at three options, one is acquisitions in that space, the other is partnerships, and finally building out our own network,” Joosub said.

He noted that while it would require greater expenditure to improve quickly, major fibre network expansion was a definite priority for the company.

“It is a key priority for us, but it does need us to divert more investment to that sector,” Joosub said.

Joosub added that while there is no set timeline for Vodacom’s fibre expansion plans, it is a near-term goal for the company.

Building or acquiring a large fibre network would place Vodacom in direct competition with major players in the fibre market, including Vumatel and Openserve, and give South Africans more choice when it came to a fibre network provider.

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Vodacom’s big fibre network expansion could take on Vumatel and Openserve