Business
Why Vumatel is betting big on township fibre in South Africa
A new frontier for fibre in South Africa
For years, fibre rollouts followed a familiar pattern in South Africa. First the suburbs, then the gated estates, then the leafy streets where data demand and disposable income went hand in hand. That market is now crowded. Everyone from Openserve to Frogfoot and MetroFibre is fighting over the same pavements.
Vumatel believes the next big growth story sits elsewhere. In townships and lower-income suburbs where reliable home internet has long been limited or unaffordable, the country’s biggest fibre network operator is preparing to make its boldest push yet.
Why Vumatel is changing its focus
Vumatel has already passed more than two million homes with fibre-to-the-home connectivity, more than double its nearest rival. Among households earning over R30,000 a month, it estimates its market share sits at an impressive 41 percent. In the middle bracket of R5,000 to R30,000, that share climbs to roughly 55 percent.
But below that lies a vast and largely untapped audience. Around 9.7 million households earn under R5,000 a month, and Vumatel currently accounts for only about 13 percent of that market. For a company that has already saturated higher-income areas, the maths is obvious. This is where future growth lives.
Regulation slowed things down; now momentum is back
One reason fibre expansion slowed in recent years was regulatory uncertainty. The Competition Commission’s initial rejection of Vodacom’s acquisition of 30 percent of Maziv, Vumatel’s parent company, created hesitation across the sector.
After more than four years, the deal was finally approved in late 2025. That decision unlocked funding that Vumatel plans to use to expand its network, including deeper rollouts into low-income communities. Industry watchers widely see this clearance as a turning point that allows large-scale investment to resume.
Smaller players moved fast in the meantime
While the giants paused, newer fibre network operators moved quickly into townships. Fibertime and Net Nine Nine each passed around 300,000 homes, with Fibertime rolling out across 51 townships in seven provinces and reporting over 900,000 monthly active customers by December 2025.
Other names like Zing Fibre, Ilitha Telecoms, and Wire Wire have also built strong local footprints. On social media, many residents have praised these providers for bringing fibre where it never existed before, even if service consistency varies from area to area.
Open access versus closed access: the real battleground
Vumatel’s biggest point of difference is its open access model. Unlike closed-access networks that act as both infrastructure owner and internet service provider, Vumatel sells wholesale access to dozens of ISPs. Afrihost, Axxess, Cool Ideas, Mweb, Webafrica, and Vox are just some of the names reselling Vumatel lines.
For customers, this competition matters. If service or pricing disappoints, switching ISPs does not require changing the physical connection. In closed-access areas, there is usually no alternative. Your only escape is another technology altogether, often mobile broadband that cannot match fibre stability.
Affordable fibre without cutting corners
Price remains the biggest barrier in townships, and Vumatel is betting heavily on Vuma Key. Starting at R99, it undercuts the next cheapest fibre product by around half. While its speeds of 10Mbps download and 5Mbps upload are modest, they comfortably support HD streaming, online learning, and everyday browsing.
Unlike some entry-level products that limit connected devices, Vuma Key allows households to connect as many devices as they like. For homes where one line serves an entire family, that flexibility is crucial.
More than market share, it is about inclusion
Vumatel says its long-term goal is not just scale but sustainability and quality. By focusing on network reliability and partnering with experienced ISPs, it believes it can deliver affordable connectivity without the trade-offs that often plague low-cost services.
In a country where internet access increasingly defines access to education, jobs, and services, the township fibre race is about more than business dominance. If Vumatel’s strategy succeeds, it could help close one of South Africa’s most persistent digital gaps.
Also read: The one global deal South Africa cannot afford to lose
Follow Joburg ETC on Facebook, Twitter, TikT
For more News in Johannesburg, visit joburgetc.com
Source: MyBroadband
Featured Image: MyBroadband
