The fibre-to-the-home revolution that has swept suburban South Africa is about to arrive in the country’s townships, writes ARTHUR GOLDSTUCK.
Fibre-to-the-home is this decade’s magic ingredient for high-speed, painless and unlimited Internet access. But, until now, it has been the province of the privileged. Only the more affluent suburbs of South Africa’s cities have been afforded the luxury of the dedicated optical fibre cables that typically run in trenches along leafy sidewalks.
That is about to change.
Vumatel, the company that sparked the FTTH revolution when it won a contract to supply fibre to the suburb of Parkhurst, is at it again. This time, it plans to connect the townships of South Africa. It has come up with a low-cost alternative to wiring dense suburbs, and intends to offer uncapped high-speed broadband for a mere R89 a month.
To put that in context, the average spend on a cellphone in lower socio-economic segments is typically around R100. Fibre, coupled with in-home Wi-Fi, can replace a large chunk of cellular spend by moving voice traffic from the mobile networks to voice over WhatsApp and Facebook Messenger, among other. All data use in the home would move off the expensive data services provided by the mobile operators.
With wide-scale roll-out, this could prove immensely damaging to the operators. More significantly and to the point, however, it could prove immensely beneficial to those who have previously been kept away from the largesse of high-speed, unlimited access.
The Vumatel service will offer a 100Mbps download and 10Mbps upload speed, which typically costs more than a R1000 a month in more affluent suburbs. How is it possible, then, to offer it at a mere R89 a month?
Only with a great deal of commitment to finding an affordable broadband solution for the mass-market.
“We think that the FTTH deployments as we and other operators are doing them are great for the country, because we are moving connectivity forward at a macro level,” says Vumatel CEO Niel Schoeman. “But it is clearly not addressing the information divide between the less fortunate and the leafy suburbs, and potentially exacerbates inequality in terms of information access.
“We’ve been trying to come up with a solution to address townships, to provide that abundance of information to residents of townships. We think we can do it by providing it at R89 a month for a 100Mbps uncapped service. We think that is fundamentally different to a 500MB data allocation on a prepaid service, which has been the only kind of option for connectivity.”
Vumatel will initially roll out the service in the Johannesburg township of Alexandra, with an estimated 400 000 residents in the target area.
“That is our township equivalent of the announcement that we were connecting Parkhurst. We’re going to give it a go between now and March.”
The question remains: how is such low cost possible on a business level?
On the surface, the answer lies in Vumatel’s October 2016 acquisition of Fibrehoods, a provider of aerial fibre similar to overhead telephone lines. However, that in itself would not cut the costs so radically. Until recently, Fibrehoods had also been serving wealthier suburbs.
“Clearly, to make that price point work, we need to work hard at the capital cost of deployment,” says Schoeman. “The topography of townships doesn’t lend itself to the typical buried, trenched solution, so we’ll use aerial fibre.
“The price is possible thanks to a combination of technologies , the potential number of customers per square kilometre, and the fact that it will also be potentially contended up to 20 times, meaning 20 customers will use the same 100Mbps line. So each customer is always guaranteed 5Mbps upward, but the probability of getting more like a 20Mbps service is high. Not everyone will be using the same line at the same time.”
Vumatel will also use its fibre to provide Wi-Fi in public spaces in the townships. This service will be possible, partly, thanks to corporate social investment from its 49% shareholder, Investec.
“We’ve looked at a broader Wi-Fi deployment model, but we don’t think it creates the abundance that closes the digital gap,” says Schoeman. “You can use the analogy of water: Wi-Fi hotspots create wells where people can collect water whereas, if you provide piped water to homes, you see people growing gardens and using it in an unlimited way. We want to go deep into every home, uncapped, at high speed, and see if we can make a difference.”
Unlike the suburban model, where Vumatel lays down the fibre and leaves it to Internet Service Providers to deliver access, it will initially provide access itself. It will piggyback on the Dark Fibre Africa grid that will link it to the broader Internet and undersea cables, but will acquire and distribute access and data services itself.
“We first want to see if we can make the model work rather than having to add additional margins for service providers. Our philosophy is always open access so, if it works, we will see if we can let service providers offere innovative services.”
Schoeman believes the eventual fibre market for all service providers will be as much as 35-million. He says it will be possible for Vumatel to bring fibre within reach of another 10-million people in the next couple of years, at a cost of between R2-billion and R3-billion.
“We want to see if we can kick off another catalyst event like Parkhurst, and start a storm: to see if we bring abundant connectivity to low income homes.”
Naspers feeds into Latin America’s tech funding
Movile will get $400m funding from the SA-based technology investment giant for iFood expansion.
Movile is to receive US$500-million in funding for iFood in the largest tech funding in Latin America to date. Naspers and Innova Capital have committed to invest $400m of new capital into Movile to use for further investment in iFood, the leading online food delivery platform in Latin America, of which Movile is a majority shareholder.
Movile and Just Eat have already invested $100m in iFood during 2018. iFood’s extraordinary growth and the vast market opportunity in Brazil and more broadly in Latin America has driven the increased investment commitment.
iFood’s monthly orders in Brazil have fed more than 9 million customers in the past twelve months, 16 times the nearest online competitor, in terms of daily active users. This means its partner restaurants are serving the biggest population of consumers ordering food in Latin America. iFood has 50 000 restaurant partners and uses 120 000 couriers.
The increased investment commitment from Naspers, Innova and Movile is expected to accelerate growth, speed up product development and innovation, and fuel geographical expansion for iFood across the region. The company’s vision is to gain deeper knowledge of consumers through artificial intelligence technology, to personalise the food delivery experience – and at a reduced price, because of improved logistics.
“Movile is very fortunate to have long-term investors who have supported us for the past decade to help achieve our goal of transforming the lives of more than one billion people and thus we are able to continually back iFood to ensure it remains the market leader,” said Fabricio Bloisi, Movile CEO.
“Our entire ecosystem of companies is focused on allocating resources and energy towards our one billion people goal. iFood is leading the way, fueling unprecedented growth through its innovative technology platform, providing consumers, couriers and restaurants with the best experience in food ordering and delivery.”
Larry Illg, CEO of Naspers Ventures, said: “iFood has established itself as a technology leader in Latin America and its success stacks up with some of the most innovative food companies that are leading regions in North America, Europe and Asia. We have been impressed by their execution in Brazil and remain committed to backing the company on its path to transform the entire food chain to better serve consumers.”
Online food delivery is experiencing massive expansion globally. According to latest reported results, Grubhub grew daily average orders 39% year-on-year, reaching over 416 000 orders per day. In Latin America, iFood has reached 390 000 orders per day just in Brazil in the last week of October, compared with 183 000 in October 2017, representing 109% growth.
iFood CEO Carlos Moyses said: “We want our consumers to have an amazing delivery experience from the moment they order their food to the moment it arrives. Our partners – the restaurants and delivery fleet – make that happen by living our purpose of improving people’s lives using our services.
“iFood exists for our customers and, with an increased investment commitment of this size, we will be able to build out our state of the art technology platform, and increase our courier and restaurant partners to even better serve our current and future customers in Latin America.”
Hide your sheep, Spyro is reigniting
Spyro, the iconic purple dragon that entertained living rooms worldwide in the late ‘90s, is making a return with the release of Spyro Reignited Trilogy.
Spyro Reignited Trilogy introduces players to a fully remastered game collection with a re-imagined cast of characters, animations, environments, new lighting and recreated cinematics—all inHD. Now fans can explore more than 100 lush environments filled with new detail, that brings the Dragon Realms and Avalar to life . The trilogy is available for PlayStation 4, PlayStation 4 Pro and the family of Xbox One devices from Microsoft, including the Xbox One X.
South African distributors Megarom provided the followjng information:
In Spyro Reignited Trilogy, lead developer Toys For Bob is giving fans an all scaled-up version of the original three Spyro games that started it all, Spyro the Dragon, Spyro 2: Ripto’s Rage! and Spyro: Year of the Dragon, but with a modern-day feel that makes it fresh and fun for today’s player. Adding to the fun, voice actor Tom Kenny is returning to the franchise as the voice of Spyro in all three remastered games. Longtime fans will be treated to Toys For Bob’s reimagined version of the classic soundtracks, in addition to an all-new title-screen theme from original soundtrack composer Stewart Copeland.
Additionally, the new game brings an in-game audio feature that allows players to switch between the original and the newly remastered soundtracks, for those who want a more classic gameplay experience. Players can simply fly in to the “options menu” at any time during gameplay, unleash their preferred nostalgic or scaled-up groove, and glide right back into the Spyro action without losing saved data.
“It’s been a real pleasure to bring back one of most iconic video game characters of all time through the Spyro Reignited Trilogy,” said Paul Yan, Co-Studio Head at Toys For Bob. “We’ve poured everything we’ve got into making sure every detail was done right to deliver a great Spyro experience for fans. We hope players will have as much fun revisiting the Spyro world and characters as we did remastering them.”
In the road up to the official release of Spyro Reignited Trilogy, Activision Publishing, Inc., a wholly owned subsidiary of Activision Blizzard, created a first-of-its-kind, life-sized, fire-breathing and talking Spyro Dragon drone. The drone took off from “Stone Hill” castle near New York City, spreading his wings across the U.S. to explore the cities and iconic landscapes that resemble levels and themes from the original Spyro games. As part of the tour, the Spyro drone chased sheep, fired up some BBQ and delivered an early copy of Spyro Reignited Trilogy to fellow O.G. and entertainment icon, Snoop Dogg. Highlights from the Spyro drone’s delivery to Snoop Dogg can be found here.
“Fans have been asking Activision to bring Spyro back for some time now. The response to Spyro Reignited Trilogy has been great thus far, and we’re absolutely thrilled that we’re able to continue to reimagine and reinvigorate some of the most iconic videogames and characters of all time with our remastered experiences,” said Steve Young, Chief Revenue Officer at Activision. “With this year being the 20th anniversary of Spyro, there’s no better time to pay homage to everyone’s favorite purple dragon.”
The Spyro community is invited to geek out and elevate their fandom even further through the elite global partnerships from the Activision Blizzard Consumer Products Group (ABCPG). Collaborations with Funko, Traly Pins, Exquisite Gaming, KidRobot, USAopoly, Trends International, Rubber Road, and Changes have created new avenues for fans to share their love for the return of Spyro, the original roast master. Spyro consumer products across apparel, collectibles, figurines and more are now available at retailers worldwide. Fans can also take advantage of the GameStop exclusive Spyro TOTAKU Collection.