NexaWave Fibre Networks — Problem Statement & NexaWave Solution
The problem statement and the NexaWave solution - the connectivity gaps and the open-access infrastructure response.
Section 5 · Business Plan
Problem Statement & NexaWave Solution
The problem statement and the NexaWave solution – the connectivity gaps and the open-access infrastructure response.
The problem
- Unequal internet access: home internet penetration sits at 17.4%,
with a stark metro–township divide. - Expensive connectivity: high mobile-data costs make mobile-only
access a poor substitute for fixed broadband among lower-income
households. - Under-served townships: fibre coverage in townships and secondary
towns remains thin relative to demonstrated demand. - Poor speeds in many regions: areas without fibre depend on
constrained fixed-wireless or costly satellite alternatives. - Legacy copper decline: the copper shutdown strands households and
SMEs that have no fibre alternative. - SME connectivity gaps: many small businesses lack reliable,
affordable high-speed connectivity essential to digital trade.
The NexaWave solution
| Problem | NexaWave response | Mechanism |
|---|---|---|
| Unequal access | Open-access fibre infrastructure | Carrier-neutral network; 75+ ISPs compete to serve every passed home |
| Expensive connectivity | Affordable township broadband (Reach) | Low-cost-per-home build; entry products aligned to sub-R5,000/month households |
| SME gaps | Enterprise-grade fibre (Business) | Dedicated FTTB, SLAs, symmetrical speeds for SMEs and corporates |
| Backbone constraints | Metro backbone & dark fibre (Metro) | Carrier-neutral backhaul, dark-fibre leasing, data-centre interconnect |
| Municipal digital deficits | Smart-city infrastructure (SmartCity) | CCTV backhaul, IoT, municipal connectivity, traffic systems |
| Coverage–adoption gap | Penetration-led monetisation | Recurring wholesale line rentals rise across an already-built footprint |
The strategic elegance of open access is that NexaWave’s incentives
align with the market’s: because it does not compete with its ISP
customers, every ISP is a distribution partner rather than a rival. The
more ISPs that sell aggressively over the network, the faster
penetration rises across a fixed-cost asset — converting the market’s
competitive intensity into NexaWave’s revenue growth.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of NexaWave Fibre Networks (Pty) Ltd.