Frogfoot announced that it will continue buying small fibre network operators (FNOs) that serve affluent suburbs, and it expects larger networks to become available for sale in the next few years, CEO Shane Chorley told the TechCentral podcast. At the same time, Octotel and MetroFibre Networx, which share a common investor, are assessing a merger of their own.
FNOs are independent providers that own and operate fibre-to-the-home (FTTH) infrastructure in a limited geographic area, often fewer than 10 000 homes. Frogfoot has already completed a few of these purchases and says it will keep the pace. The company, together with internet service provider Vox and prepaid fibre brand Hypa, raised new equity and expanded its debt facilities in August, a transaction that valued the combined businesses at R14.4 billion. Most of the fresh capital is earmarked for township projects, where Frogfoot wants to lift its annual build rate from roughly 80 000 connections to 360 000.
Why the focus on suburb networks?
Chorley explained that the leafy-suburb market offers a predictable revenue base and lower deployment costs, making it attractive for roll-out speed. He added that once the smaller operators are consolidated, “there might be a much bigger consolidation of one or two of the bigger ones.” Consolidation among fibre operators can change wholesale pricing and the choice of provider on a given street, which is what small businesses that rely on a stable connection will feel first.
Abraham van der Merwe, who leads Frogfoot, Vox and Hypa, said infrastructure businesses inevitably need scale, and therefore consolidation is unavoidable. He stressed that Frogfoot does not plan to be sold to a larger telco such as MTN, preferring to grow organically and keep ownership within a patient investor group.
When asked whether the firm would rather buy or be bought, Chorley replied that ignoring a genuine offer would be “ignorant”. Yet his preferred outcome is to be the acquirer, not the target.
Van der Merwe also addressed the growing interest in low-Earth-orbit (LEO) satellite broadband, noting that such services are suited to sparsely populated areas where laying fibre is not economical. In dense township environments, fibre remains the most efficient way to deliver high-speed internet because each satellite serves a large footprint and throughput drops as more users share the link. He pointed out that even satellite operators need ground stations that rely on fibre connections.
The discussion of 5G fixed-wireless networks echoed the same point. Comsol, a Frogfoot customer, uses 5G base stations that are physically small, but the fibre that feeds each home is substantial, underscoring the continued relevance of fibre in high-density areas.
For small and medium-sized enterprises, the consolidation trend could mean fewer choices for wholesale fibre capacity but also the possibility of larger, more financially stable providers that can invest in network upgrades. The upcoming Octotel-MetroFibre merger, backed by African Infrastructure Investment Managers (AIIM), adds another layer of potential change in the market, though details remain limited.
Frogfoot’s plans fit a wider move toward larger fibre operators that can serve both affluent suburbs and denser township markets. Whether the consolidation changes wholesale pricing or service reliability is not something the company has addressed. We reported earlier this week on Webafrica’s plan to bring fibre to 400 schools, which shows how uneven fibre reach still is outside the suburbs.
Chorley indicated that, beyond the “leafy suburbs”, he foresees “slightly bigger operators” entering the market for sale within the next few years, suggesting a pipeline of opportunities that could reshape the mid-size segment. He added that after these acquisitions “there might be a much bigger consolidation of one or two of the bigger ones”, hinting at a future where the market is dominated by a handful of larger players. This outlook builds on the earlier statement that Frogfoot has already completed a couple of small-network purchases and plans to keep the momentum, reinforcing the company’s long-term growth narrative.
The acquisition of a small fibre network operator typically involves a due-diligence phase where the buyer evaluates the target’s asset base, subscriber count and contractual obligations, followed by a valuation that often references the number of homes served, usually fewer than 10 000. Once a price is agreed, the parties negotiate equity and debt components, as seen in the August financing that valued the combined Frogfoot, Vox and Hypa businesses at R14.4 billion. After signing, the transaction is recorded with the Companies and Intellectual Property Commission, and the new owner assumes responsibility for ongoing construction, maintenance and customer service commitments.
Octotel and MetroFibre Networx are currently assessing a merger, a move that reflects the shared interest of their common investor, African Infrastructure Investment Managers. “I think we should see a consolidation in the leafy suburb FNO space continue. And we want to participate in that,” one spokesperson said, underscoring the strategic intent to capture the same suburban market that Frogfoot is targeting. The merger assessment involves aligning the two firms’ network footprints, financial structures and operational plans to determine whether a combined entity would achieve economies of scale and stronger market positioning.
The next steps for the Octotel-MetroFibre merger will include a formal agreement, followed by filing the proposed combination with the Competition Commission for clearance, a standard requirement for telecom consolidations in South Africa. Assuming approval, the parties will then integrate their network assets and harmonise service offerings, a process that could extend over several months. Meanwhile, the TechCentral Show podcast interview with Chorley and Van der Merwe is slated for publication next week, providing further insight into the strategic timeline and anticipated milestones.
