MTN South Africa is muscling its way into the low-cost uncapped internet market with a R5/day product that directly competes with similar offerings by fibre-based internet providers such as Riot Network, Wire Wire Networks, Fibertime and Vumatel’s Vuma Reach.
Dubbed MTN GigZone and currently in a pilot phase, the service offers 5Mbit/s internet speeds for R5 valid for 24 hours to MTN’s prepaid customers at selected community locations in Gauteng and the Western Cape.
“MTN South Africa has launched MTN GigZone to address the critical need for affordable, reliable internet access in township communities, where cost remains a major barrier to connectivity,” MTN South Africa said in a response to a query by TechCentral.
MTN’s pilot in the low-cost internet space faces stiff competition from fibre-based networks using innovative technologies to offer similar products in South African townships.
Wire-Wire Networks has deployed fibre to 15 800 homes in Thembisa (previously Tembisa), a sprawling township in central Gauteng. CEO JP Schmidtke said Wire-Wire Networks – like other industry players such as Vumatel, Fibertime and Frogfoot – believes townships present the next big expansion opportunity for fibre network operators.
Wire-Wire’s closest competing product to MTN GigZone offers an unlimited 100Mbit/s connection for R9/day. Connections are limited to one device at this price point, but Wire-Wire offers other options with higher speeds and more connections to its customers.
Riot
Riot Network, founded by Jarryd Bekker, Moses Mpofu and Daniel de Kock, is using wireless mesh networks to offer similar products to customers in Olievenhoutbosch, a township near Centurion in Gauteng. Riot offers a R99/month product – amounting to just R3.30/day and guaranteeing customers minimum connection speeds of 5Mbit/s during peak hours. Speeds can reach 100Mbit/s during off-peak hours, according to Riot.
Deploying internet infrastructure economically is a challenge in townships. Networks like Wire-Wire and Riot rely on creating innovative wireless network topologies to help minimise the cost of deployment. However, Wi-Fi networks suffer from congestion at peak times, which can degrade the user experience. Maziv subsidiary Vumatel opted for a different strategy for its pilot project in Alexandra, Johannesburg.
TCS | New player in township fibre market offers 100Mbit/s for R9/day
Vumatel extends the trenched backhaul fibre run by Dark Fibre Africa into Alexandra through aerial nodes that run directly along cables into each home.
“Our goal is to give you unlimited, 20Mbit/s internet for less than R100/month. You can do it with Wi-Fi but then if everybody starts streaming, the quality goes down. So, we’ve set ourselves a goal to put fibre right into the final person’s dwelling,” Maziv chairman Pieter Uys told TechCentral at the project’s launch in September 2023.
As an established mobile operator with infrastructure spanning South Africa, MTN’s advantage is that it does not need to invest in additional infrastructure first. Fibre companies going after a similar demographic, on the other hand, must first deploy last-mile networks, costing time and money. High mobile penetration rates and the convenience of mobile connectivity are an added advantage for MTN.
“As a mobile operator, MTN holds a key advantage over fibre-based ISPs by delivering low-cost, uncapped internet solutions to its existing customer base in underserved communities. Our extensive mobile network infrastructure allows us to reach areas where fixed broadband deployment is limited, providing instant connectivity without the need for complex installations,” said MTN South Africa in a statement e-mailed to TechCentral following inquiries by the publication.
On the flipside, fibre-based packages allow for people in the same household to share the cost of internet and choose faster connection speeds if they want to. It also gives landlords an opportunity use internet access as an additional feature to their rental properties, also helping decrease individual costs by splitting it between tenants and baking it into their monthly rental fee.
GigZone is limited to specific places in its pilot phase, but MTN’s infrastructure allows for these areas to be expanded, which in future could allow customers to move around while maintaining access.
A major drawback of low-cost fibre internet is that customers are limited to their home and surroundings if they want to make use of the product. Wire-Wire is a notable exception to this rule since it uses a single SSID, or Wi-Fi network name, across Thembisa and allows users to access its network wherever it is available.
MTN will send one notification per day to customers when they enter a GigZone spot. Notifications are also sent when a customer purchases a GigZone bundle or when they live a GigZone area. GigZone usage is limited to mobile devices – PCs and laptops are barred from using the service. GigZone data cannot be shared via a Wi-Fi hotspot. Customers are automatically disconnected from the GigZone service when they leave a GigZone area and automatically reconnected when they return.
Read: The internet revolution happening in Olievenhoutbosch
“By offering seamless, 24-hour internet access for just R5, MTN is ensuring that more South Africans can stay connected without worrying about high data costs. This initiative empowers users by enabling access to education, job opportunities and online resources,” said MTN South Africa. — (c) 2025 NewsCentral Media
Get breaking news from TechCentral on WhatsApp. Sign up here.
