Lebang Mosimanegape | Business Owner | Emerging Markets | MetroFibre | mail me |
South Africa’s connectivity landscape tells a tale of two realities. In affluent suburbs, gigabit fibre connections are becoming commonplace. These enable seamless remote work, streaming and digital entrepreneurship.
Meanwhile, in townships and informal settlements, home to millions of South Africans, residents struggle with expensive and unreliable mobile data as their primary internet access. This digital divide is not just about convenience. It is a barrier to economic participation that perpetuates inequality and deepens the urban-township connectivity gap.
The challenge for fibre network operators is not only technical or financial. It is about reimagining how fibre connectivity services can be structured to serve communities that traditional models have left behind. The solution does not lie in charity-based approaches. Instead, it rests in sustainable business models that recognise the unique characteristics and challenges of township communities.
Understanding the township reality
Townships present unique challenges that are absent in traditional suburban fibre rollouts. Property ownership structures are complex. Many residents rent rooms in shared properties or live in informal arrangements.
Income patterns are often irregular. Many residents are employed in sectors that offer inconsistent monthly earnings. Traditional credit scoring systems frequently exclude these communities, creating additional barriers to service access. Yet these same communities represent enormous untapped potential.
Township residents are often early adopters of mobile technology. They also demonstrate significant demand for connectivity services. Small businesses, home-based enterprises, and educational needs create genuine demand for reliable internet access. The challenge lies in creating service models that align with the economic realities of these communities while addressing the urban-township connectivity gap.
The contract structure and property ownership problem
Traditional fibre installation and ISP models assume property ownership, stable monthly income and willingness to commit to 12-24-month contracts. These assumptions immediately exclude large portions of township populations. A tenant in a backyard room cannot authorise structural modifications for fibre installation. A street vendor with seasonal income fluctuations cannot commit to fixed monthly payments for two years.
The fibre industry’s reliance on long-term contracts made sense when installation costs were high and customer acquisition expensive. However, this model creates insurmountable barriers for communities where property tenure is uncertain and income is variable.
We have been at the forefront of acknowledging that flexibility is not a luxury in these markets. It is a prerequisite for participation, and the company is finding solutions for such participation.
The fibre pay-as-you-go revolution
Mobile networks proved that pay-as-you-go models work effectively in South African townships. The success of prepaid mobile services demonstrates that residents can and will pay for connectivity when the payment structure aligns with their financial realities. Extending this principle to fibre connectivity represents a fundamental shift in how we are approaching market expansion.
Monthly, no-contract, pay-as-you-go fibre packages eliminate several barriers simultaneously. For example, we offer flexible options. These range from month-to-month fibre-to-the-home packages available at various speed tiers to the MetroConnect solution.
MetroConnect is a pay-as-you-go uncapped package with 20Mbps, 40Mbps or 60Mbps symmetrical speeds. It eliminates lengthy contracts and commitment concerns. Residents with irregular income can adjust their connectivity spending based on monthly circumstances. This approach also reduces risk for network operators. Instead of relying on lengthy collection processes, operators receive payment upfront.
Customer relationships become more dynamic. Service levels adjust to actual usage patterns rather than contracted minimums that may be unsustainable.
The rollouts of community-based fibre experience stores in Steeledale, Thembisa and Riverside View in Gauteng, and New Brighton and Zwide in Gqeberha, Eastern Cape, reflect the incredible demand in these communities. The infrastructure in these five areas now passes over 75,000 homes, with more than 20% of these homes connected.
We also recognise that internet access is often a shared resource. A single connection might serve an extended family, support a small business, or enable educational activities for multiple children. Its service packages acknowledge and accommodate this sharing pattern rather than trying to prevent it.
Closing the connectivity gap
Closing the urban-township connectivity gap is not just a technical challenge. It is an opportunity to demonstrate that inclusive business models can be both socially impactful and economically sustainable. The solutions require operators to reimagine everything from contract structures to installation processes. The rewards, however, extend far beyond immediate revenue.
Underserved communities with reliable, affordable connectivity become more economically active. They also become more educationally engaged and socially connected. The digital divide is not inevitable. However, closing it requires business models and service approaches that serve incredibly diverse community needs.
If South Africa is to make progress in addressing inequality, then connectivity must become foundational to educational, employment and entrepreneurial opportunities that were previously out of reach. It requires collective effort from the entire fibre connectivity industry to build a more inclusive digital economy that benefits everyone by closing the urban-township connectivity gap.
