Executive Summary

You are a busy person so here is what you need to know. 

  • The internet service provider game is huge. It is expensive to get into but easy to make money once you have a foothold. ICASA quoted R194B revenue for just the telecoms industry. This means the average person in South Africa spends R8000  on telephone and connectivity in a year.

  • The only option for lower-income households is Mobile data. Which is incidentally also the most expensive form of data available today.(Mobile cost 6 times what an equivalent fibre will cost).

The question now becomes is there an opportunity here is there a way to provide internet to these communities at a much lower cost. 

The answer of course like so many of these is, it depends. If the users are all close together it is possible to use different technology than when the users are far apart. If we take the technology that are available to provide WiFi connectivity to a lot of users that is close together then we can do this at a very low rate.

We have already proven that it is possible with a small user base in the lower LSM market to eek out a small net profit of 9% in our first year of operation.

 We already know we can operate at a profit. We just have to decide do we want to grow fast or slow. If we chose fast we will need a capital investment to allow us to wire and install new sites quicker. Getting newer clients online faster and increasing revenue.