In the ever-evolving telecom landscape, Africa is witnessing an intense rivalry between two industry giants. MTN and Vodacom are gearing up for a broadband battle that will shape the continent’s digital future.
On the surface, the battle pits MTN’s Bayobab open-access network against Vodacom in partnership with Amazon’s Project Kuiper. The stage is set for an exciting competition that ultimately promises to connect Africa’s untapped areas.
MTN has been steadily expanding broadband access with Bayobab, which aims to monetise MTN’s fibre capacity across the continent by transforming it into an open-access network.
Led by Bayobab CEO Frédéric Schepens, this initiative aims to revolutionise connectivity across the continent.
Schepens sums up the vision: “As a young entrepreneurial business delivering value through open next-gen digital solutions, we believe Bayobab best encompasses our vision of connecting Africa and ensures we add meaningful value across the continent.”
The strategy involves bridging the digital divide by providing broadband access and bringing benefits of modern technology to more African communities.
MTN’s commitment to its vision has borne fruit, with the company showing impressive performance and results. MTN is nearing its target of investing R10bn in the expansion of its fibre network to an open-access network. In the first half of 2023, Bayobab achieved a significant milestone by laying about 3,000km of new fibre. This led to an impressive cumulative owned fibre cable inventory of 108,000km as of June 30. Bayobab also has access to 16 submarine cables circling the African continent.
The company has ambitious expansion plans in SA, Nigeria, Zambia and other parts of the continent.
This initiative demonstrates a strong commitment to the idea that the digital revolution should be inclusive and reach the most remote corners of Africa.
With Bayobab, MTN is well positioned to open a significant digital gateway and connect communities that have historically been underserved.
Apart from the challenge of covering remote areas, MTN also has to contend with the rival ambitions of Vodacom and its partner — Amazon’s Project Kuiper, a low Earth orbit satellite communications project.
The partnership between Vodafone, the parent company of Vodacom, and Project Kuiper represents a formidable force. By leveraging Project Kuiper’s advanced network, Vodacom aims to expand 4G and 5G coverage in Africa, especially in underserved areas where traditional connectivity solutions are difficult to implement.
Shameel Joosub, CEO of Vodacom Group, underlines the importance of this collaboration, saying: “At Vodacom, our purpose is to connect for a better future and we work every day to bring more people in Africa online.”
By leveraging Amazon’s satellite constellation, Vodacom aims to rapidly expand its reach across the continent. This partnership is a testament to the growing importance of satellite-based solutions in addressing connectivity challenges.
What makes this broadband access battle even more interesting is that both MTN and Vodacom share a common goal: to bring more people in Africa online.
This shared mission means that despite the rivalry, African communities that are eagerly awaiting connectivity will ultimately be the winners. Competition is likely to lead to improved services, more competitive prices and greater reach.
However, the challengers for African market share do not end with MTN and Vodacom. Liquid, a subsidiary of Cassava Technologies owned by billionaire Strive Masiyiwa, is also a formidable player in the race.
Liquid’s fibre network spans 106,000km across the continent. Liquid has also partnered with Microsoft’s Airband Initiative to bring internet connectivity to 20-million underserved people in Africa by 2025.
The continent is hungry for broadband connectivity, and the more players that enter the scene, the greater the chances of achieving widespread access. Connectivity is not just about streaming videos or social media; it is about giving people knowledge and access to education, healthcare and economic opportunities.
It is important that these companies not only compete but also work together where possible. Pooling their resources, expertise and technologies could accelerate the pace. And it is important that affordability remains a key issue to ensure that the benefits reach a broad spectrum of the population.
While MTN, Vodacom, and Liquid vie for supremacy, the real winners will be the African people who will benefit from improved services and better access to the digital world. Some may feel the benefits as early as 2025.
• Lourie is the founder and editor of TechFinancials.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.