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Johannesburg - South Africa’s biggest mobile phone network Vodacom plans to connect 250 000 homes and businesses to fibre broadband over the next three years.
Vodacom on Monday announced that it has signed on Alcatel-Lucent to build a “gigabit passive optical networking (GPON) solution” in Johannesburg, Pretoria, Cape Town and Durban.
The mobile network said it plans to reach about 150 000 homes and 100 000 business within the next three years.
“We first began talking with Alcatel-Lucent about expanding Vodacom’s business into the fixed access market five years ago,” said Andries Delport, Vodacom Group Chief Technology Officer (CTO), in a press statement.
“This was a significant move for us and required a great deal of consideration. Over time, the Alcatel-Lucent team was able to show that it was the right move for us and that their solution was the best for our needs,” said Delport.
The mobile network’s move to grow its fixed line fibre network comes as it seeks a R7bn buyout of Neotel.
Vodacom wants to acquire Neotel’s customers, fibre lines and spectrum as part of the deal. Vodacom already has around 30 million subscribers in SA.
But rival networks Cell C and MTN have opposed the potential Vodacom-Neotel deal.
Cell C has raised concerns that Vodacom could become too powerful in the market if the deal is approved. Meanwhile, MTN has objected to the transfer of Neotel’s spectrum assets to Vodacom.
Public hearings took place at the Independent Communications Authority of South Africa (Icasa) in Johannesburg earlier this month where objections were heard regarding the Vodacom-Neotel deal.
A decision from regulators regarding the deal has not yet been made.
Fibre growth in South Africa
Vodacom is not the only company with plans to roll-out high speed fibre networks in South Africa.
Rival fixed line operator Telkom announced in December 2014 that it plans to install fibre broadband services to Groenkloof, Houghton, Eldoraigne, Parktown and Westcliff in Gauteng; Chelmsfordville, Dawncrest, and Winston Park in KwaZulu-Natal, and Claremont, Bishops Court and Plattekloof in the Western Cape.
Last month, Fin24 also reported that telecommunications company Vumatel is expanding from Parkhurst to Johannesburg’s Greenside and Parktown North suburbs by May 2015 and that the company plans to expand to 40 suburbs in both Gauteng and the Western Cape.
And a company called ‘Fibrehoods’ is installing ‘aerial’ fibre networks across Johannesburg suburbs such as Craighall, Craighall Park, Winston Ridge, Atholl, Inanda, Illovo and Elton Hill.
