Vuma Reach success is great news for fibre in South Africa

Vumatel’s Vuma Reach fibre project in Mitchells Plain far exceeded its business targets, which bodes well for fibre rollouts across South Africa.

Vumatel started to trial its Vuma Reach fibre concept in Mitchells Plain in 2019 to see if it is financially feasible to offer fibre-to-the-home services in lower LSM suburbs.

As part of the project, Vumatel launched a prepaid platform as traditional fibre price points and contracts were not feasible in Mitchells Plain.

Through this platform, residents can purchase a token which gives them uncapped, unlimited Internet access for 28 days.

The Vuma Reach project was far more successful than anticipated and Community Investment Ventures Holdings (CIVH), which owns Vumatel and DFA, is upbeat about its potential.

CIVH chairman Pieter Uys said when Vumatel started this project in Mitchells Plain, the aim was to reach 30% penetration in 12 months for the business plan to be successful.

They easily exceeded these targets. In the first four zones in Mitchells Plain, Vuma Reach achieved 60% penetration in less than a year.

“In fact, in some zones, 60% connected homes was achieved between 250 and 300 days,” Uys said.

Vuma Reach in Mitchells Plain

Vumatel told MyBroadband Mitchells Plain provided them with a strong pilot programme for their emerging market fit-for-purpose solution, Vuma Reach.

Vuma Reach became part of Vumatel’s broader plan to deliver a cost-effective connectivity solution.

Many families in lower LSM areas are using costly mobile data to access the Internet, and fibre-to-the-home provides a far better and more affordable experience.

“We believe that all communities, throughout the country, can and should have access to high speed, reliable connectivity,” Vumatel said.

“Our Vuma Reach solution makes this possible through its fixed-line speed and competitive price point, which means we can get more people online and connected to the global village.”

To date, Vumatel has rolled out Vuma Reach in Grassy Park, Retreat, Blue Downs and Mitchells Plain in Cape Town, Vosloorus in Ekurhuleni, and Soweto in Johannesburg.

Its Vuma Reach network has now passed more than 100,000 homes in these areas.

The company said its strategy remains focussed on delivering high speed, fit-for-purpose connectivity to as many homes and neighbourhoods as they can.

The maps below provide an overview of Vumatel’s Vuma Reach coverage in Cape Town, Ekurhuleni, and Johannesburg.