Over the past 13 years, South Africa’s internet connectivity has undergone a remarkable transformation, largely driven by the introduction of fibre optics. This technological advancement has not only brought faster speeds but has also ushered in competitive pricing, making older technologies like ADSL increasingly obsolete. Let’s delve into this digital evolution and explore how fibre disrupted ADSL in South Africa.
Read also: Zimbabwe Begins Fibre Optic Project, Prepares To Become Africa’s Internet Hub
From Dial-Up to ADSL: The Early Days
South Africa’s internet journey commenced in 1997 with dial-up connections. These connections used the public switched telephone network infrastructure, providing users with speeds capped at 56Kbps. These speeds were inadequate for modern high-bandwidth applications like video streaming.
In 2002, South Africa saw the introduction of an asymmetric digital subscriber line (ADSL). ADSL offered faster internet while using the same telephone copper lines. Initially, ADSL packages came with strict monthly data caps. However, in 2010, Mweb brought a game-changer by introducing affordable uncapped DSL packages. These packages offered line speeds ranging from 384 kbps to 4,096kbps (4Mbps), with the fastest option priced at R1,029 per month, including the mandatory Telkom analog phone line rental.
The Fiber Revolution: Vumatel Takes the Lead
In 2014, the internet landscape took a dramatic turn with the entrance of Vumatel, a company that played a pivotal role in initiating the fibre-optic revolution. While ADSL offered speeds of up to 40Mbps, Vumatel disrupted the market by providing faster, more reliable, and higher-speed fibre connections. This transition was particularly pronounced in affluent neighbourhoods. By 2019, Vumatel had become the largest fibre-to-the-home operator in South Africa, surpassing even Telkom’s Openserve, which had a more extensive network footprint.
Competitive Fibre Pricing
Vumatel introduced competitive packages, though higher-end services were relatively expensive. For instance, Vumatel’s symmetric 50 Mbps line was launched at R3,298 per month. It’s noteworthy that Parkhurst, a Johannesburg suburb, negotiated a complimentary 4Mbps line for residents to stimulate adoption. This highlights the growing demand for affordable high-speed internet.
The COVID-19 pandemic underscored the need for increased bandwidth at home, setting off a fibre price war. Fibre network operators (FNOs) reacted by significantly boosting the speeds on their packages, offering better pricing per megabit-per-second. This made fibre a more attractive choice. The trend of increased speeds at competitive prices continued even after the pandemic. Many FNOs phased out their entry-level packages, making sub-R500 fibre packages a rarity.
Telkom’s Evolution
Telkom, formerly known for high ADSL prices, changed its strategy and began undercutting rival FNOs in entry-level fibre pricing. In 2020, it eliminated the mandatory landline rental requirement with ADSL packages, reducing the price of uncapped 40Mbps VDSL to R899. By 2023, a 40Mbps VDSL service could be obtained for R697 per month through Afrihost. Nonetheless, finding areas that still support DSL connectivity became increasingly challenging.
The Dominance of Fibre
Currently, nearly 1.6 million South African homes across eight major networks are connected to fibre, with Vumatel leading the way. In contrast, Openserve’s ADSL customer base dwindled to about 74,000 by March 2023, down from a peak of nearly 1 million in March 2016. However, Openserve’s fibre network, while covering fewer homes, boasts a higher connectivity rate, with over 515,000 homes connected.
The provided table and graph reveal how the pricing of 50Mbps FTTH and 40Mbps VDSL evolved from 2014 to 2023. Fibre now offers better value for money with faster speeds, paving the way for the future of internet connectivity in South Africa.
In essence, the rise of fibre optics has clearly positioned it as the preferred choice for South African internet users, rendering ADSL increasingly obsolete. This technological shift is contributing to the gradual narrowing of the digital divide as more individuals gain access to high-speed, dependable internet connections through fibre-optic networks.