Investec has backed Vox’s fibre rollout plan by providing the company with access to debt facilities, the companies announced on 15 February 2021.
“The rollout of fibre via our subsidiary Frogfoot, is key to helping revolutionise the lives of local families and businesses, by providing a fast, affordable and reliable platform for communication,” said Vox CEO Jacques du Toit.
“However, the fibre telecommunications game is a competitive one and the right funding partner for growth is paramount.”
“This additional capex allows us to continue to provide communities with fast and reliable fibre to both homes and businesses as demand continues to grow,” he said.
Frogfoot, the fibre network owned by Vox, has doubled its footprint and significantly expanded to smaller towns across the country.
The company said it is driven by its commitment to an open-access wholesale network and has grown its ISP network by 30%.
Funding further fibre growth
Investec Specialised Finance Consultant Laverne Chetty said that when fibre-to-the-home was launched, higher LSM areas with high housing density in metropolitan areas were the ones naturally targeted first.
“We are now at the point where fast-growing companies such as Vox and Frogfoot are expanding beyond these areas, into new outlying regions where both homes and businesses still need fibre,” Chetty said.
“With the additional funding we have provided, Vox has the capability to implement the next stage of its growth strategy which includes taking fibre to those areas eager to benefit from high-speed internet access.”
Du Toit added that this funding would enable the company to continue meeting the growing demand for fibre connectivity.
“Demand for fibre is expected to continue to increase as pandemic-driven changes like work from home gain even more traction,” he said.
“In the end, the rollout of fibre should not only boost the home market but also increase business productivity and efficiency, while delivering a connectivity foundation ideal for start-ups and new businesses.”
“The finance provided to us will enable Vox to achieve its growth ambitions, its desire to remain at the forefront of revolutionising connectivity, and its aim of helping to maintain the human connection across the nation,” du Toit said.