DAVID COLEMAN Customers will want fibre but they also want more options at better costs
Globally, the connectivity and ubiquity of fibre remains a priority, with the UK set to achieve more than 80% of full fibre coverage over the next two years, on track to join countries such as Japan, Iceland, Korea, Spain and Sweden, where coverage has surpassed 80%.
South Africa is also making significant strides in connecting households, with a 2 400% rise in fibre connections over the last seven years, says Frogfoot Networks chief product officer David Coleman.
However, economic constraints are affecting service providers and most are unable to continue absorbing the impact of the current climate and have to pass some of the costs on to the consumer through price increases.
“The pressure placed on people from an economic standpoint is trickling down into all aspects of daily life, with most consumers focusing more on cost than on speed,” he says.
This will likely lead to pricing that will balance changing speeds within different packages more aligned with customer needs, including prepaid options, as connectivity in 2024 is defined by accessibility, affordability and ingenuity.
“Customers will want fibre but they also want more options at better costs, while companies will continue to fight for growth within shrinking margins and tightening belts.
“This is an opportunity for customers to benefit from solutions that are aimed at the lower segment of the market. Solutions that will potentially come in at low price points as companies compete for attention and market share,” he explains.
The services are limited with reduced WiFi range; however, they do provide rapid connectivity and improved experiences on mobile devices, as well as improved reliability. Further, customers can keep their routers connected during power outages, unlike mobile solutions that last only as long as the batteries in a cell tower.
“The available speeds will likely sit at around 50 Mb/s and the cost of connectivity will easily be covered by cash. This is transformative accessibility that will have a lasting social impact and will be further bolstered by the move towards prepaid fibre solutions,” he adds.
“These prepaid packages are affordable and accessible. People are at a point where they have to make tough choices about purchases, so prepaid options keep them connected within a cost bracket they can manage but without a significant compromise on quality and speed.
“It is very likely that this will remain as solid growth in 2024 for all these reasons plus the added benefits of connectivity while on holiday – prepaid can travel.”
A smooth transition from limited connectivity options to a variety of options to suit different customers and budgets is opening doors for South Africa, with improved business opportunities, education, networking and collaboration providing people with the connectivity they need to enrich their lives.