{"id":556420,"date":"2024-08-21T15:58:15","date_gmt":"2024-08-21T13:58:15","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=556420"},"modified":"2024-11-18T11:26:53","modified_gmt":"2024-11-18T09:26:53","slug":"metrofibres-big-shift","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/fibre\/556420-metrofibres-big-shift.html","title":{"rendered":"Metrofibre’s big shift"},"content":{"rendered":"\n

South Africa’s third-biggest fibre network operator, Metrofibre, has slowed down its network rollout after reaching a key target and is now focusing primarily on expanding its customer base in areas with existing coverage.<\/p>\n\n\n\n

Metrofibre was founded in 2010<\/a> and initially provided dark fibre backhaul connectivity for Internet service providers (ISPs) and telecom companies.<\/p>\n\n\n\n

Its first fibre-to-the-home (FTTH) services were quietly rolled out in Glenferness in mid-2015<\/a>, followed by an official launch in Sunninghill and Barbeque Downs.<\/p>\n\n\n\n

At launch, ISP Greencom offered uncapped FTTH on Metrofibre’s network priced from R683 per month for a 10Mbps connection. <\/p>\n\n\n\n

A 25Mbps package cost R854 per month, while the fastest line speed \u2014 100Mbps \u2014 would set you back R2,849 per month. <\/p>\n\n\n\n

Early in the next year, Patrice Motsepe’s African Rainbow Capital (ARC) acquired an 18.14% stake in the FNO, providing a boost in funding for its network expansion. <\/p>\n\n\n\n

In 2016, Metrofibre partnered with Link Africa<\/a> to replace all its leased core network links in Gauteng with its own fibre to increase long-haul capacity.<\/p>\n\n\n\n

In early 2021, the FNO announced that it secured R2.5 billion in debt funding with the aim of radically increasing its fibre footprint. <\/p>\n\n\n\n

Coupled with another R1.5 billion in equity raised towards the end of 2020, the funding was intended to help add another 300,000 homes to its homes passed tally, which stood at 205,000 at the time. <\/p>\n\n\n\n

In 2021, Metrofibre acquired small FNO Link Africa, quickly adding another 10,000 homes passed to its network.<\/p>\n\n\n\n

ARC sold its stake<\/a> in MetroFibre to African Infrastructure Investment Managers (AIIM) in 2022. <\/p>\n\n\n\n

AIIM took its stake in MetroFibre to 25.8% with further acquisitions from Sanlam Private Equity and a minority shareholder. <\/p>\n\n\n\n

As of June 2024, Metrofibre’s network passed 517,000 homes, slightly more than its target of 300,000 new homes set three years earlier.<\/p>\n\n\n\n

It holds the title of third-biggest open-access FTTH network, beaten only by pioneer Vumatel and Telkom’s Openserve.<\/p>\n\n\n\n

\"\"
MetroFibre trenching fibre in a suburb in Pretoria East in 2022<\/figcaption><\/figure>\n\n\n\n

MyBroadband recently asked MetroFibre about its current business strategy after reaching its rollout target. <\/p>\n\n\n\n

The FNO said that most of South Africa’s densely populated areas have reached high levels of FTTH coverage, leaving fewer opportunities for new deployments. <\/p>\n\n\n\n

“The market’s growth rate has certainly slowed slightly and our penetration rates are starting to achieve predicted business case rates in our older areas where fibre has been available for a number of years, where consumers are familiar with what technology brings,” the FNO said. <\/p>\n\n\n\n

“In our newer areas, built only a year or two ago and with an audience that is not familiar with the benefits of having an uncapped internet connectivity solution, we still see an opportunity for growth albeit at a slower pace.”<\/p>\n\n\n\n

Metrofibre is prioritising and focusing on continuing to build in and around its existing infrastructure, while increasing penetration and improving its customer experience, customer journey, and cost efficiency.<\/p>\n\n\n\n

That strategy aligns with most major FNOs, which have slowed down rollouts and focused on customer acquisition and retention.<\/p>\n\n\n\n

The only exception is Telkom’s Openserve, which was still rolling out at a rapid pace in the first half of 2024.<\/p>\n\n\n\n

Prepaid not proving popular<\/h2>\n\n\n\n

Metrofibre said its other focus areas will be improving sign-up and payment methods for its customers, to ensure ease of use with simple and transparent packages and terms. <\/p>\n\n\n\n

One of Metrofibre’s more recent products is MetroConnect, a prepaid service offering affordable pricing on a 20Mbps symmetrical FTTH package over short periods \u2014 from R20 per day to R440 for 30 days. <\/p>\n\n\n\n

The FNO said this option was more frequently used in previously underserved areas, holiday homes, and student accommodation. <\/p>\n\n\n\n

However, MetroConnect has seen relatively slow adoption, as the majority of customers preferred month-to-month entry-level packages.<\/p>\n\n\n\n

Metrofibre said customers with access to its newer Nova network were primarily interested in the 40Mbps package.<\/p>\n\n\n\n

Across its broader network, it had also seen increased interest in its high-end packages with speeds over 100Mbps \u2014 particularly its 250Mbps product.<\/p>\n\n\n\n

With regards to marketing and customer service, Metrofibre has a unique offering among FNOs \u2014 physical experience stores. <\/p>\n\n\n\n

It is currently operating four of these stores as part of proof-of-concept trial \u2014 two in Gauteng and two in the Eastern Cape. <\/p>\n\n\n\n

“We have been very happy with the performance of these stores with equal visitors interested in purchasing products, wanting to experience uncapped high-speed fibre internet and requiring support and understanding,” Metrofibre said. <\/p>\n","protected":false},"excerpt":{"rendered":"

Metrofibre has switched strategy after reaching a key rollout target.<\/p>\n","protected":false},"author":341042,"featured_media":526235,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[28470],"tags":[64179,20153,59717],"class_list":["post-556420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fibre","tag-fibre-network-operators-fnos","tag-fibre-to-the-home-ftth","tag-metrofibre"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/556420"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341042"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=556420"}],"version-history":[{"count":16,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/556420\/revisions"}],"predecessor-version":[{"id":570627,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/556420\/revisions\/570627"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/526235"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=556420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=556420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=556420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}