The rollout of fibre-to-the-home coverage in South Africa has slowed significantly over the past three years, primarily due to regulatory delays. A recent example of this slowdown is a major fibre operator, which reduced its fibre capital expenditure by 23% in the six months ending September 2024.

This decline in investment has resulted in a mere 2.7% increase in the operator’s fibre footprint during the same period. The country’s fibre network investments have consistently declined since 2021, coinciding with a regulatory review of a proposed acquisition in the fibre market.

The regulatory body rejected the deal, citing concerns about decreased competition in the fibre market. This decision has had a chilling effect on fibre investments in South Africa.

Several network operators have reduced investments due to various reasons, including awaiting the outcome of regulatory hearings and prioritizing debt repayment.

The delay in fibre rollout has significant implications for South Africa’s digital transformation. Without external investment, fibre network operators will struggle to continue their aggressive rollouts.

Recently, a fibre network operator launched an uncapped fibre service from R99 per month. However, without additional funding, the company will not be able to sustain its rapid fibre deployments.

Data shows that South Africa’s largest fibre network operators have reduced their capital expenditure budgets, resulting in fewer new homes being passed.

The slowdown in fibre rollout has far-reaching consequences for South Africa’s digital economy. It’s essential to address the regulatory delays and encourage investment in fibre infrastructure to ensure the country’s digital transformation.