Data-only mobile operator Rain’s network is expanding “according to plan” to achieve nationwide connectivity and improve network quality as data demand “gets wind from behind”.

The group has also experienced an upsurge in connectivity demand as more employees work from home amid the current Covid-19 fears, says major shareholder African Rainbow Capital (ARC) co-CEO Dr Johan van Zyl.

Over the past month, Rain recorded an increase of two to three times the normal demand as more people are required to work from home, with an increase in the sales of its fourth-generation (4G), long-term evolution (LTE) and fifth-generation (5G) products reported in mid-March.

Overall, Rain’s subscriber base has been steadily increasing, particularly its unlimited off-peak data packages, with its income sources comprising roaming income, 4G data sales, 5G subscriptions and reseller income.

During October 2019, the group launched the first commercial fixed-wireless 5G network in parts of Johannesburg and Tshwane, expanding its 5G network to over 300 live 5G sites, with ambitions to grow this to 700 by the end of this year and, eventually, up to 2 000 5G live sites in future.

The group also boasts over 3 000 active LTE sites.

Rain has a significant business-to-business division and intends to build a dedicated national LTE-advanced network that will eventually facilitate an environment where open access to the Internet becomes a reality in South Africa, with the best possible quality and Internet speed at affordable rates, the company says.

Rain currently holds an allocation in the 1 800 MHz band, as well as in the sought- after 2.6 GHz band, where it holds the only licence, and the 3.6 GHz band, on which the 5G network will be built.

“Overall, the growth prospects for Rain remain optimistic. Revenue growth has been encouraging and significant progress is being made to further improve on network performance and stability. Rain is well positioned to become a major player in the 5G data market,” ARC says.

ARC Investments has a shareholding of 20.7% in the company, with Rain now accounting for 27.4% of the fund’s value.

Rain’s fair value increased by R183-million during the year ended December 31, 2019, increasing the ARC Fund investment in Rain from R2.5-billion as at June 2019 to R2.7-billion by December 2019.