Community WiFi and MVNOs Drive Inclusive Connectivity in South Africa
As South Africa advances its national broadband strategy, SA Connect, a new wave of service providers is stepping up to accelerate internet access in underserved areas. Known as hybrid carriers, these innovative providers are reshaping how communities connect by combining different technologies such as fibre, mobile services, fixed wireless, and community WiFi.
SA Connect, launched in 2013, is the government’s primary broadband policy aimed at providing affordable and fast internet access to all South Africans by the year 2030. The program focuses on connecting schools, healthcare facilities, government institutions, and rural communities to high-speed internet. While the government continues its investment in long-term infrastructure projects, hybrid service providers are already making a difference by offering more immediate, flexible solutions to bridge connectivity gaps.
According to Craig Palmer, Chief Executive Officer at VAS-X, the industry is witnessing a shift from single-service operators to multi-service providers who are agile and community-focused. Palmer explained that traditional fibre companies often face significant challenges when trying to expand into remote or low-income communities. These challenges include delays in obtaining municipal approvals, high installation costs, low average revenue per user, and the fact that many residents are unbanked or unable to commit to monthly subscriptions.
To address these barriers, hybrid carriers have adopted models such as Community WiFi. This approach involves establishing local hotspots at supermarkets, cafés, taxi ranks, and other public areas where users can access the internet using prepaid vouchers. For a small fee of R5 or R10, community members can connect to the internet for a full day. This model has proven effective in providing affordable digital access while also generating income for the providers. A single fibre connection can now support hundreds of users daily, making it a profitable and socially impactful investment.
Palmer highlighted that underserved communities in South Africa represent an estimated R26 billion in annual spending power. Yet much of this market remains excluded from digital services. Community WiFi presents an opportunity not only to connect people but also to empower them through access to online education, e-commerce, digital banking, and government services.
In addition to providing fixed broadband and hotspot services, many hybrid carriers are entering the mobile space as Mobile Virtual Network Operators (MVNOs). By leveraging existing mobile infrastructure, these ISPs are now offering mobile services that complement their WiFi and fibre offerings. This omni-channel model allows customers to stay connected whether they are at home, at work, or on the move.
As hybrid providers expand their range of services, they also face new operational complexities. Managing different services across fibre, mobile, wireless, and prepaid systems requires robust billing and customer support infrastructure. Traditional OSS (Operational Support Systems) and BSS (Business Support Systems) often fall short in meeting these diverse needs. VAS-X has positioned itself as a leader in this space by offering integrated solutions tailored to hybrid service models. Their platform supports fibre, wireless, mobile billing, prepaid voucher management, customer relationship systems, and regulatory compliance, all in one flexible environment.
Craig Palmer emphasized the importance of having adaptable and scalable systems for hybrid telcos to thrive. He noted that with the right tools and support, hybrid communications providers are not only creating new business opportunities but are also enabling millions of South Africans to access the digital economy.
As South Africa works toward its digital transformation goals, hybrid carriers are proving to be essential players in delivering meaningful and inclusive connectivity. Their ability to innovate, respond to local challenges, and offer cost-effective services makes them a critical part of the country’s future broadband success.
For more information about VAS-X and its solutions for hybrid service providers, visit www.vas-x.com.
