Presented by Dark Fibre Africa

Why fibre networks must work together to lower prices

To offer the most affordable, scalable, and the fastest fibre possible to South Africans, networks and operators will need to work together.

This is according to Dark Fibre Africa (DFA) CEO Thinus Mulder, who said that changing business conditions have affected companies in the ICT sector significantly.

“For the most part the impact has not been a positive one,” Mulder said. “As a recent PWC study on the industry put it, the telecoms sector is fast reaching a tipping point.”

“As a significant player in this industry, DFA has felt the impact firsthand.”

“The changes have been so fundamental and far-reaching that adapting to them will require drastic steps; from re-examining business models to forming strategic alliances with associates and competitors alike,” Mulder said.

He added that this changing industry will require standalone telcos to become partners in a more connected ecosystem.

Encouraging co-operation and reducing prices

Mulder went on to say that companies must improve their co-operation and function more efficiently within their role in the local telecommunications sector.

“The key aspect that the shift will achieve is to encourage higher levels of co-operation, collaboration, and coordination. Whether a provider of infrastructure or services, each must define their role in the telecoms ecosystem and play it well.”

“For DFA, as a supplier of infrastructure at scale, this means continuing to lead the industry in an open-access approach to reduce duplication and costs as well as create efficiencies and speed up deployment.”

Mulder previously stated that sharing infrastructure is a necessity for operators who want to reduce the price of their products.

This due to issues such as rising labour and electricity costs, and up to 1,500% increases in wayleave costs in certain metros.

Companies will need to accept the sharing of infrastructure as a requirement for more efficient offerings, and enhance their position in the industry by competing on services, he said.

This article was published in partnership with Dark Fibre Africa.

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Why fibre networks must work together to lower prices