In South Africa’s fiber-to-the-home (FTTH) market, a shake-up is on the horizon as internet service providers (ISPs) gear up to introduce a wave of price increases. This comes in response to recent wholesale price hikes confirmed by fiber network operators (FNOs) after a two-year period of stability, according to ICT and future-tech consulting firm Africa Analysis.
The firm’s June analyst note emphasizes the significant influence FNOs have on ISP pricing, highlighting the fierce competition in the South African fiber market, with a focus on township and smaller markets. Africa Analysis’ pricing analysis reveals that certain ISPs have been gradually raising prices over the past two years.
Drawing on their FTTH pricing database, the report examines the price trends of month-to-month uncapped FTTH packages, primarily based on average prices observed in the first quarter of 2023. It also provides insights into the expected trajectory of these prices in the short to medium term.
Ofentse Dazela, Director of Pricing Research at Africa Analysis, notes that households have previously benefited from price reductions through promotional discounts and free speed upgrades. However, looking ahead, he expects a wave of price increases from ISPs to align with the wholesale pricing adjustments made by FNOs.
As the FTTH market evolves, customers can anticipate potential changes in pricing structures as ISPs respond to wholesale trends, ultimately shaping the landscape of fiber connectivity in South Africa.