Operating in an environment that’s structurally unkind, SMEs need to know they can stay connected so they can consistently deliver high-level services to their growing customer base, both locally and abroad.

This need has driven the growth of the South African fibre to the business (FTTB) market which reached 257,000 connected and active endpoints by December 2024, up from 243,000 in September 2023.

It’s a market segment anticipated to grow at a 5.7% compound annual growth rate over the next five years, according to Africa Analysis, thanks to the introduction of more cost-effective products and services provided by a wider variety of service providers.

But uptake is not without its obstacles.

Many SMEs are still struggling to access reliable FTTB services due to a mix of cost, infrastructure availability and uncertainty about the correct package for their needs.

Economic pressures, including currency volatility, rising interest rates and increased power and logistics costs, are forcing SMEs to reassess every operational expense.

So, while connectivity remains a priority, it has to equally deliver both value and stability to warrant the cost that comes with FTTB.

Companies want consistency and uptime, not vague SLAs and best effort response times – when fibre goes down, the business goes down.

SMEs need to trust that their ISP and network provider will keep them online and informed. With so much of the business relying on cloud tools, real-time communication and remote access, downtime costs money and companies are no longer willing to accept generic excuses or outsourced accountability.

An ISP and network operator must be proactive, provide clear updates and ensure the fastest possible resolution timelines, and the FTTB service needs to hold up under pressure when the data requirement is at its peak, like month-end for a retail store in a shopping centre.

This translates to using a service provider that has a proven uptime rate, even through loadshedding, and that has invested in power redundancy and network failovers, but also in the customer experience and service value it offers.

However, trust also comes from transparency. The reality of operating in the South African environment is that there are cable thefts, loadshedding, battery issues and infrastructure damages that take place outside of the service provider’s control.

Providers need to offer real-time updates that give SMEs visibility into the problem and offer clear insights into timelines and downtime.

When companies know how long a problem will last, they are better equipped to manage downtime and customers.

Unfortunately, there’s a perception in the market that SMEs are often given less favourable SLAs compared to larger companies and that more affordable options are unreliable and lack transparency.

For many, FTTB is a frustrating experience with unaffordable and unflexible options that aren’t fit for purpose and are complicated to understand and manage.

It’s a disconnect that points to a bigger issue: fibre offerings that aren’t designed around real business needs.

Smaller companies don’t have the time to decode contention ratios or navigate vague product tiers – they want a provider that can match their requirements with the right service, explain what they’re getting and deliver what’s promised.

This means clear pricing, defined performance expectations and upgrade paths that don’t involve major disruptions.

There’s also the issue of support. SMEs often don’t have dedicated IT teams so they rely on their providers to troubleshoot, escalate and resolve problems quickly.

A missed update or a long ticket queue can damage client relationships and internal operations – companies just want support that’s easy to access and that provides accurate updates without lengthy delays.

Some providers are addressing this gap. Frogfoot, for example, enables ISPs to offer tailored options across the SME and enterprise spectrum such as cost-effective asymmetrical connections for smaller teams, and dedicated, SLA-backed fibre for high-demand environments.

More importantly, these solutions are built with scalability and clarity in mind so companies of all sizes gain control over their connectivity without being locked into contracts they can’t grow out of.

FTTB providers are fighting for more than market share, they’re fighting for SME trust and loyalty. If they can deliver a range of business-aligned products, transparency, open-access infrastructure, competitive costs, and uptime guarantees, then companies will invest in their services and stay with them as they grow.

Reliability, transparency and customer support will define who leads in the next five years.

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The connectivity and ubiquity of fibre remains a priority, globally. In the UK, Ofcom is predicting that the country will achieve more than 80% of full fibre coverage over the next two years.

Already in Japan, Iceland, Korea, Spain and Sweden it is more than 80% while South Africa is clambering forwards to connect as many households as possible with an impressive 2,400% increase in fibre connections over the past seven years. But what does this upward fibre trend mean for the connectivity solution in 2024?

First is the anticipated shift towards more affordable solutions for cash-strapped consumers.

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.

This is likely going to trigger a flurry of price announcements that will balance changing speeds within different packages more aligned with customer needs.

That said, economic pressures are affecting the ISPs as much as consumers – dollar pressure and inflationary costs are being felt by service providers so most will increase their prices across the board as of February 2024.

A deft balance between price and performance will soften the price blow, but many companies are unable to continue absorbing the impact of the current climate and have to pass some of the costs on to the consumer.

The move to faster service is in line with a global trend. Internationally, consumers are gaining access to speeds beyond a gig.

There has been this ceiling on fibre to the home (FTTH) of a gig both upload and download, but nobody has actively ventured beyond this for a home offering in the past, although it has been standard practice for fibre to the business (FTTB).

Now, companies are breaking the ceiling and introducing higher speeds to remain competitive and there’s a collapse happening in the middle and higher segments.

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.

The services are limited with reduced Wi-Fi range, but they do provide rapid connectivity and radically improved experiences on mobile devices alongside improved reliability.

Customers don’t lose connectivity when there’s a power failure as they can keep their routers connected, unlike mobile solutions that last as long as the available cell tower battery.

The speed and reliability factors are going to play a significant role in the market in 2024, igniting increased adoption of FTTH solutions across new areas of the South African market.

The available speeds will likely sit at around 50Mb per second 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.

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. This is the ideal investment for students, retirement villages and holidaymakers.

The smooth transition from limited connectivity options to a variety of options to suit different customers and budgets is opening doors for South Africa.

On the social front, it allows for improved business opportunities, education, networking and collaboration, providing people with the connectivity they need to enrich their lives.

On the business front, it puts service providers on a new frontier where competition may yet bring the prices down even further, but will definitely improve speeds and quality.

The shape of connectivity in 2024 will be 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.