DFA wants 20,000 more fibre-to-the-business connections by 2016

·1 Jun 2015

Dark Fibre Africa (DFA) has set a target to connect 20,000 businesses to its fibre network by the end of its current financial year, ending March 2016.

The target is “significantly higher” than the number of businesses it currently has on its network, the group said, and growth will be largely driven by the adoption of cloud technology.

“Although there are several drivers leading to increased demand for connectivity, we have identified that globally cloud computing is a critical driver for the adoption of fibre based connectivity,” said Reshaad Sha, chief strategy officer at DFA.

“In order for cloud computing to deliver the benefits of cost saving, business continuity and business agility, it requires a secure and super-fast connection that only a fibre network can provide.”

The company noted that, although cloud adoption in Africa is still in its infancy, demand for cloud services are growing in the private sector across South Africa.

“Almost half of 100 JSE-listed corporations are using a form of cloud computing as they are looking to use innovative solutions to develop a competitive edge and drive efficiencies across the business,” it said.

In March, DFA reported a 15% rise in revenue for the six months ended September 2014 to R468 million, on the back of 31% growth in annuity revenue.

DFA’s earnings before interest, tax, depreciation and amortisation increased by 16% to R344 million, while the book value of its fibre-optic network is in excess of R4.7 billion, the group said.

The group owns fibre network rings in Johannesburg, Cape Town, Durban (expanding to Pietermaritzburg), Midrand, Centurion and Pretoria.

During the past twelve months, the network has been expanded to a further 17 smaller metros, including East London, Polokwane, Tlokwe, Emalahleni and George to name a few, it said.

DFA has 6,290 base transceiver station sites on the network that cover three of the four mobile operators.