Fibre crackdown coming for South African complexes

The Competition Commission says it has received six complaints about fibre monopolies at complexes and estates in South Africa since mid-October 2024.

In July 2024, the Internet Service Providers Association (ISPA) raised alarm bells over estates with fibre installations that don’t allow multiple Internet service providers (ISPs).

Just under three months later, the Competition Commission urged residents unhappy with exclusive ISP arrangements at their complexes to come forward and submit their complaints.

MyBroadband asked the Competition Commission if it had received many complaints and about how it planned to address the situation.

“I can only confirm that the Commission received six complaints,” said the acting head of communications at the Competition Commission, Siyabulela Makunga.

“These complaints are currently under investigation. The Commission will, in due course, reveal the outcomes of its investigation.”

We also followed up with ISPA on the topic. It said it isn’t aware of any further developments but will engage with the Competition Commission.

“Any outcome which provides residents of the complexes and estates with a greater choice at both fibre network operator (FNO) and ISP level would be welcome,” said ISPA.

In late July 2024, ISPA chair Sasha Booth-Beharilal called for non-exclusive fibre connectivity at complexes and estates in South Africa. The first prize would be increased competition at the FNO level.

However, she noted that, at the very least, homeowners’ associations, body corporates, and developers should reject any fibre installations that don’t allow multiple ISPs to compete.

Since 2016, customers’ choice of ISP has been a key requirement, and it has been outlined as a critical requirement in South Africa’s National Integrated ICT Policy White Paper.

However, ISPA is pushing for open access fibre installations, which it has called for several times in the past.

Booth-Beharilal wants estate managers, body corporates, and other players to put in writing promises regarding choosing open access providers.

“Clauses to this effect must always be inserted in any written agreements with planned fibre providers,” she said.

“Open access commitments must be kept on body corporate meeting agendas, and residents must scrutinise fibre rollout agreements within communities before trenching begins.”

“In ISPA’s view, closed networks — or entering into an exclusive arrangement with one provider — are contrary to the ideal of a level internet services playing field that values innovation and competition,” Booth-Beharilal added.

BBM Attorneys director Marina Constas described it as “unfortunate” that South Africa hasn’t made it mandatory for body corporates to allow residents a choice of ISP.

“Owners should be allowed to find themselves the best deal,” she said.

Constas added that countries like Australia have legislated this kind of policy in their Telecommunications Act.

“At the moment, there are sometimes complexes or trustees that might be getting a good deal or be promised certain things by fibre providers who are recommending that they only use one ISP,” she said.

“I think it’s anti-competitive, and I think this kind of conduct would fall foul of the competition board.”

Concerns raised over fibre monopolies at complexes and estates in South Africa prompted the Competition Commission to urge residents unhappy with their situation to come forward and complain.

Makunga said the Commission had previously received many complaints from residents about exclusive ISP contracts in residential estates.

He said the Commission had carried out a public advocacy campaign to boost competition in estates and complexes in South Africa.

The investigation found that some homeowners associations and body corporates in the country appoint a single service provider for services like fibre connectivity, limiting residents’ choices.

FNO Openserve is pushing for residential estates to move away from exclusive contracts with single ISPs.

Openserve chief regional officer Selby Khuzwayo explained that these deals may have provided benefits in the early days, but their contracts can be difficult to get out of.

He added that many will lock customers in for five to 10 years.