Fibre network operator MetroFibre has announced it has acquired Link Africa’s fibre-to-the-home (FTTH) network and infrastructure in Gauteng and Kwa-Zulu Natal.
The acquisition means MetroFibre Networx now passes 10,000 more homes on its network.
The deal was effective from 1 April 2021 with a transition period which is expected to be completed by the end of June 2021.
Once the deal is concluded, MetroFibre will have passed 205,000 homes in five provinces across South Africa.
This ranks it among the top five fibre network operators in South Africa in terms of number of homes passed.
The acquisition of Link Africa’s FTTH infrastructure comes after MetroFibre last month announced it had secured R2.5 billion in debt funding to expand its fibre rollout in South Africa.
This was alongside a recent R1.5 billion equity raise towards the end of 2020.
Link Africa CEO Craig Carthy said the sale of its FTTH assets was part of the company’s strategy to focus its business on Fibre-To-The-Business (FTTB) and Fibre-To-The-Tower services.
MetroFibre CEO Steve Booysen stated that the operator’s growth strategy involved a combination of building and extending its infrastructure organically as well as pursuing acquisitions of existing infrastructure networks from fibre network operators.
“The combination of organic growth, successful capital raises, and a focused acquisition strategy will see MetroFibre well placed to play a leading role in the sector’s unfolding consolidation process, elevating the business into a market-leading position,” he said.
Booysen added that MetroFibre aimed to densify its existing networks to reach an additional 300,000 residential homes across the country over the next two years.
MetroFibre said there would be virtually no effect on the services of the current FTTH subscribers on the Link Africa network, as MetroFibre was an open access provider.
This means customers would simply continue their relationship with their current Internet Service Provider (ISP) without interruption.
Free speed upgrades
MetroFibre recently also informed its ISP clients it will be increasing the speeds of its FTTH products and was introducing a new 300Mbps service.
This will be done free of charge to ISPs from 1 June 2021.
As part of the changes, MetroFibre is discontinuing its entry-level 10Mbps service which will be replaced by a 25Mbps product.
Other packages will be adjusted to the next higher speed at no additional cost, with the current top-tier 200Mbps line getting upgraded to 300Mbps.