South Africa’s Competition Commission Approves Fibre Merger to Expand Network Access

In a significant move aimed at bridging the digital divide, South Africa’s Competition Commission has approved a merger that will expand fibre infrastructure across underserved areas of the country. The merger, involving Refibre and Onepath Investments acquiring dark fibre networks developed by Fibretime Networks, promises to improve internet access in townships and low-income housing areas.

The approval, granted on April 1, came with no apparent conflicts of interest or concerns over competition in the domestic market. The Competition Commission stated that the deal would not harm market dynamics, which has paved the way for the successful merger. This decision marks a crucial step forward in improving broadband accessibility in South Africa.

Focus on Underserved Communities

The merger comes as part of an ongoing strategy to enhance fibre capabilities in South Africa’s township market, an area that has long been underserved in terms of reliable internet infrastructure. Fibretime Networks has been servicing these communities with fibre network and internet access, providing affordable and accessible broadband options.

The company offers uncapped 100mbps fibre service at a remarkably low cost—ZAR 5 (USD 0.25) per day—targeting township dwellings with a flexible payment system based on daily vouchers instead of traditional monthly billing. This approach has proven successful in reaching those in informal and low-income housing areas, where many residents previously struggled to access reliable, affordable internet.

The Role of Refibre and Onepath Investments

Refibre and Onepath Investments have been established as a capital-raising vehicle for the expansion of fibre networks across South Africa. These companies are designed to raise the necessary funds and manage the acquisition of the target assets from Fibretime Networks. With the merger now approved, the acquired infrastructure will fall under the direction of Refibre and Onepath, allowing them to oversee the growth of fibre networks in previously underserved areas.

The strategic direction will focus on the continued expansion of fibre infrastructure, making high-speed internet more accessible to a broader segment of South Africa’s population. By improving connectivity in these regions, the merger aims to enhance digital inclusion, supporting economic growth and educational opportunities.

A Positive Step for the South African Digital Economy

The Competition Commission’s approval of this merger is a positive step for South Africa’s digital economy. It demonstrates the government’s commitment to expanding access to essential services like internet connectivity in underserved communities. Access to fibre networks in townships and low-income areas could significantly improve the quality of life for many South Africans, providing them with better access to information, education, and job opportunities.

In a broader context, this merger could contribute to South Africa’s goal of bridging the digital divide and improving broadband penetration across the country. As internet connectivity becomes increasingly important for social and economic development, this strategic move represents a long-term investment in South Africa’s future.

Bridging the Digital Divide

With the approval of this fibre merger, South Africa is taking crucial steps toward improving internet access in underserved areas, especially in townships and low-income housing. The collaboration between Refibre, Onepath Investments, and Fibretime Networks will play a pivotal role in expanding the country’s fibre infrastructure and ensuring that more South Africans have access to reliable and affordable broadband. This deal is not just about fibre networks—it’s about creating opportunities and empowering communities with the tools they need to thrive in an increasingly digital world.

{Source ABL}

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