Fibre revolution weaves faster internet into suburb after suburb

It started as a trickle a year ago. One suburb here, one there. Within 12 months, a small company called Vumatel was signing up large swaths of Johannesburg suburbia for fibre-to-the-home roll-outs. These high-speed internet connections have suddenly become a key factor in the desirability of suburbs.

Inevitably, when Telkom noted enthusiasm for fibre-to-the-home, it also began offering the service, but usually in the wake of Vumatel and other small, nimble players.

Three weeks ago, however, Telkom suddenly found itself wide awake as the strong coffee of an industry explosion jolted it from its slumber. It announced it would extend its fibre network to more than 25 new areas, suburbs and communities by the end of September.

Telkom CEO Sipho Maseko promised fibre would be available to half a million homes by the end of next year, from 38000 today, which made it the largest fibre-to-the-home network in South Africa.

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Then, two weeks ago, Telkom announced that more than 12000 Bryanston homes would have fibre access by March 2016.

At the same time, however, a long-time supplier of fibre to businesses and residential estates announced its entry. Metrofibre Networx, established in 2010, has been selected by residents of Sunninghill, in northern Johannesburg, to supply fibre to a potential total of 6000 residential properties.

The fibre explosion is not exclusive to the suburbs. Since 2013, Maboneng Broadband has connected more than 1000 residential, commercial and office units in Johannesburg's inner city. This year, the company was acquired by former broadcasting executives Michael Markovitz and Manny Teixeira, who have positioned it more broadly to provide fibre networks in other areas.

They partner with Link Africa, which pioneered the local use of sewers and storm-water pipes to lay down fibre.

In its first break-out from the inner city, Maboneng Broadband has just been selected by Vorna Valley, a Midrand suburb with more than 4500 residences, as its preferred provider of fibre to the home.

"Consumers have become a lot more informed and now want faster, cheaper connectivity on open access networks," says Markovitz.

"Over the next five years, internet access is predicted to be the fastest-growing segment of the media, tech and entertainment markets, with the [fibre-to-the-home] roll-outs being one of the biggest drivers."

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Coincidentally, last week Link Africa won a crucial legal battle to take its fibre into the Tshwane metro. After the company was given the go-ahead and commenced work in Tshwane, local authorities suddenly called a halt to the deployment in 2013. The matter went all the way to the Constitutional Court after the high court and appeal court ruled in favour of Link Africa.

Tshwane then tried to have the Electronic Communications Act declared unconstitutional, as it gave providers the right to run communications networks through private and public property.

In dismissing Tshwane's application, the Constitutional Court in effect gave network providers protection from arbitrary municipal decisions, as long as they deploy in a reasonable manner and don't violate bylaws.

That's not the starter's signal for the industry - that shot was heard in Parkhurst last year - but it gives the industry greater legal certainty, the precursor to more serious investment and, ultimately, a profitable sector.

Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter @art2gee.