• Market Watch

Expanding fibre connectivity at the coast

• 4 Months Ago - 2024-06-18 00:00:00

Demshi Investment Holdings signed a master service agreement with Echo Telecommunications and IT Guru Solutions last week. The contract will see Demshi's fibre open access network being used to provide fibre internet services to fixed wireless clients in Swakopmund and Walvis Bay.
Demshi managing director Werner Shilungu explained that the agreement allows the company to lease its fibre network infrastructure and provide fibre network services to end users.
“We are an open access fibre network company. We roll out an open access fibre network and allow operators to lease our infrastructure to provide internet connectivity to residents. We focus mostly on the middle to low-income areas where there is no fibre network.”
He explained that in Swakopmund, the company has rolled out services in Matatura, Tamariskia and Mondesa. This network in Swakopmund has about 6 500 house passes, he added.
“This is excluding schools, clinics and other institutional buildings. In Walvis Bay, we’ve rolled out in the entire Kuisebmond, with a network that has about 2 500 house passes, excluding the multi-dwelling units. We are covering three huge apartment blocks, which make up about 600 units.”

Substantial client base
Shilungu further explained that Echo and IT Guru have a large presence at the coast, as well as a substantial client base, and they intend to move their clients from wireless and fixed wireless to fibre connection, as well as try to get new clients on board.
“We all know the situation here on the coast, especially when it's windy - fixed wireless becomes unstable. In this digital age, we want fast, reliable broadband internet at any given time," he said.
He explained that open access means that the network is open to any internet service provider (ISP) or operator to provide its services on the network.
“It’s not restricted to a specific operator at all. The advantage of an open access network is that it gives the consumer a choice of which operator or ISP to use. It also brings the prices down, as operators no longer have to invest in the expensive infrastructure needed to recoup their investment. Additionally, operators start competing on the quality of service rather than pricing. This is a huge benefit for the end user.”
According to Shilungu, the end user gets cheaper pricing for better quality of service, and ultimately, they have the power to choose their ISP. “The consumer is in a more powerful position right now.”
In terms of future growth, he said Demshi has made provision for expansion in new areas of Swakopmund.
“There is a new development coming up in Tamariskia where we’ll be deploying fibre, as well as in Narraville, Walvis Bay. There is no fibre network in Narraville due to the massive cost of reinstatement. We are in talks with the Walvis Bay municipality to see how we can overcome that hurdle and bring fibre infrastructure to Narraville.”

Excited
Meanwhile, in Windhoek's Khomasdal, the company has covered about 95%, he said.
“The Khomasdal network will probably go live by the end of July. Then we’ll move to Rundu, Tsumeb, Otjiwarongo, Ondangwa, Oshakati and Ongwediva. We will then move down south to Mariental, Keetmanshoop and Lüderitz. The plan is to cover all the major towns in Namibia, aiming for between 150 000 to 200 000 home passes in the next three years.”
Demshi is licenced by the Communications Regulatory Authority of Namibia (CRAN).
“We were awarded our licence in 2015. However, we only got funding last year from Ino Harith, an unlisted investment management company with a mandate from the Government Institutions Pension Fund to invest in infrastructure. It invested in Demshi to roll out this fibre network, as well as towers, across Namibia.”
“We are excited about this. We are happy to assist in developing the country, rolling out fibre infrastructure and narrowing the digital divide. We focus on middle to low-income, often unsafe areas, and aim to bring digital equity to the market.”