09 September 2024
Tholo Lerotholi, Merge X Co-Founder
Recent studies show that the average internet speed in South Africa is significantly lower than the global average, with rural areas experiencing even worse performance. According to Ookla’s Speedtest Global Index, South Africa ranks 101st in the world for fixed broadband speeds.
Additionally, South Africans reported a strikingly low average net sentiment score of -41.2%, according to the South African Telecoms Sentiment Index, 2024 (DataEQ), highlighting significant challenges in service quality and reliability. These statistics underscore the need for reliable metrics like ISP ratings to gauge and improve internet service delivery. And as ISPs continue to reshape their relationships with Fibre Network Operators (FNOs), the potential for impactful change in the industry becomes increasingly pressing.
Understanding ISP ratings of FNOs
ISP ratings serve as a critical tool for assessing the performance of FNOs, whose infrastructure and efficiency directly impact service quality.
The ratings evaluate various factors such as network reliability, customer service, speed and value for money, providing a comprehensive overview of an FNO’s performance.
Understanding these ratings helps consumers make informed decisions and allows ISPs to identify the strengths and weaknesses of the FNOs they depend on.
Leveraging ratings for improvement
When ISPs rate FNOs, they use detailed criteria to assess performance across multiple dimensions. For example, a recent survey by the Internet Service Providers’ Association (ISPA) had about 50 ISPs rating FNOs on a scale of 0-10 across 11 criteria.
The results showed improvement for some FNOs like MetroFibre, Link Africa, and Liquid Intelligent Technologies, while others like Octotel, Openserve, and Vumatel experienced slippage.
The ratings can highlight areas needing attention, guiding FNOs in prioritising enhancements and investments.
The insights are invaluable for driving improvements where they are most needed. Higher ratings not only benefit consumers but push the ISPs to deliver better services.
Driving better service quality
High ratings can be leveraged by ISPs in marketing campaigns, enhancing credibility and attracting new customers. Sales and support teams can use these ratings to reassure potential and current customers of the ISP’s reliability and quality.
Furthermore, smaller ISPs can use high ratings to compete more effectively against larger providers, promoting a more dynamic and balanced market. This competitive pressure encourages all ISPs to strive for higher standards.
We need more collaboration between ISPs and FNOs
More collaboration between ISPs and FNOs can significantly improve service quality and customer satisfaction. Both entities should ideally work together to enhance network reliability, expand coverage, and reduce operational costs.
As an example, in the UK, the partnership between Openreach and local ISPs has led to substantial improvements in broadband speeds and service reliability, setting a benchmark for other regions to follow.
In South Africa, these partnerships could help address the persistent issues of slow internet speeds and service disruptions, particularly in underserved areas of the country. By sharing resources and expertise, ISPs and FNOs can create a more resilient and efficient network infrastructure. Something that will ultimately benefit consumers and even foster a healthier competitive environment.
Encouraging innovation and infrastructure development
ISP ratings provide valuable insights into areas needing improvement, guiding FNOs and ISPs in enhancing their services and adopting new technologies. This competitive environment fosters innovation, driving the entire industry forward.
Additionally, highlighting the performance of FNOs can advocate for better infrastructure, especially in rural areas, driving improvements in connectivity and digital inclusion. These ratings therefore act as a catalyst for technological advancements and broader coverage.
Recent government initiatives to expand broadband access like the Broadband Access Fund align with these goals, showing a collaborative effort to bridge the digital divide.
Impact of regulatory environment on ISP and FNO relationships
South Africa’s regulatory environment is crucial in shaping the dynamics between ISPs and FNOs. ICASA has implemented several regulations aimed at improving service delivery and fostering competition. But, for obvious reasons, these regulations can also create challenges – such as the high cost of compliance and the slow pace of regulatory reform.
In the United States, where the Federal Communications Commission (FCC) has adopted a more flexible regulatory approach, we can see different outcomes in service quality and competition levels. And in South Africa, striking the right balance between regulation and market freedom could lead to more effective partnerships between ISPs and FNOs. Something that will improve infrastructure and protect the customer at the end of the day.
Ensuring equal access to quality internet
Effectively leveraging ISP ratings is also essential when addressing the inconsistent quality of internet access in South Africa. Good quality internet service contributes to business efficiency, digital transformation and overall economic growth, positioning South Africa as a leader in the digital age.
We can ensure a more connected, competitive and thriving nation if we address the disparities in service quality and leverage ISP ratings effectively. This approach promotes equal access to high-quality internet for all South Africans, bridging the digital divide, as they say, focusing on underserved areas.
Smaller, local ISPs are essential in connecting these underserved areas to the web, particularly in rural South Africa. These ISPs often have a better understanding of the unique challenges faced by these communities and can tailor their services accordingly. However, they often struggle to compete with larger providers due to limited resources and infrastructure.
These aren’t challenges unique to South Africa, but they’re challenges we are equipped to solve.
Local ISPs can form strategic partnerships with FNOs to expand their reach and improve service quality. For example, in the Eastern Cape, collaboration between local ISPs and national FNOs has led to significant improvements in internet access for remote villages. By working closely with FNOs, local ISPs can ensure that even the most remote communities benefit from reliable and affordable internet services. It’s not only possible, but it’s happening as you’re reading this.
The numbers speak for themselves. There are currently around 45.3 million* internet users in South Africa. This was an increase of roughly 1.8 million people compared to last year. And almost double from the 25 million connected back in 2013. Not all of this progress is due to ISP and FNO collaboration, but many of the rural connectivity initiatives are. That’s where we should place our focus.
The future of the ISP-FNO relationship
As the digital landscape evolves, emerging technologies like 5G, artificial intelligence (AI), and edge computing, the relationship between ISPs and FNOs will inevitably change. These technologies promise to deliver faster, more efficient, and more reliable internet services, but they also require significant investments in infrastructure and expertise.
A good example is the deployment of 5G networks, which required ISPs and FNOs to collaborate closely to ensure that the necessary infrastructure is in place. This collaboration is essential not only for the continuous rollout of 5G (and 6G) but also for optimising network performance. It’s all about meeting the growing demand for data-intensive applications like streaming and gaming.
AI can play a crucial role in enhancing network management and customer service. By leveraging AI, ISPs can predict network issues before they occur, optimise bandwidth allocation and provide personalised customer service. This not only improves service quality but also strengthens the relationship between ISPs and their customers, fostering improved trust and loyalty.
Edge computing, which involves processing data closer to where it is generated, also has significant implications for ISP-FNO relationships. It can help reduce latency, improve data transfer speeds and enhance the performance of internet services, particularly in areas with limited connectivity. Implementing this technology will need greater ISPs and FNOs collaboration, and will ensure that they can meet the demands of the digital age.
Supporting smaller ISPs by providing access to capital and skills through shared services enables them to compete effectively and innovate, thereby attracting the necessary investment to foster a more robust telecom sector. This synergy between stakeholders across the board – from government to private sector to consumers – will lead to improved services, greater digital inclusion, and the successful integration of emerging technologies across the nation. The end goal? To position South Africa at the forefront of the digital revolution.
