We’ve received plenty of attention in the last few months following the commercial launch of our CROWDNet technology in Olievenhoutbosch where we’re providing uncapped broadband internet access to the home for only R99 per month.
A recent article by Tech Central that drew attention to our story alluded to what might be the most interesting part of our story when saying “what many readers may find surprising is that RIOT, which is deploying the network, is an entirely for-profit commercial venture”.
Many, who are familiar with the telecommunications space, are in disbelief about the commercial viability of delivering uncapped internet to the home at such a low price. After all, many others have been trying, and have not yet achieved similar levels of affordability. Achieving this is no small feat. It’s taken us seven years and many iterations to get two things right:
The Problem
Internet Service Providers struggle to provide meaningful internet access services in low-income neighbourhoods because of the limited ability of individual households to spend. Yet low-income neighbourhoods account for a large proportion of our population. Outdoor hotspots have emerged as a way to enable numerous households to share internet access without the service providers incurring high capital and operating expenditure. However, we’ve learned that meaningful internet usage (when bandwidth is available) takes place inside the home; on a television or streaming device. This makes the outdoor hotspot approach not fit for purpose.
Where does this leave customers in low-income neighbourhoods? With invariably unsuitable service provision models, inappropriate payment options, and limited ability to consume data. Hence attempts to solve digital exclusion have largely been commercially unsustainable.
User-Operated Network Infrastructure
Our solution emerged from realising that, while mobile broadband networks cover close to 100% of the nation, it is not feasible for their services to be affordable to most of the population. To support more meaningful levels of data consumption, operators would have to lay out more capital. However, they cannot expect to realise good financial returns given the limited ability of households in rural and township settlements to spend on internet services.
This realisation got us exploring the following questions:
In exploring these questions, we developed bespoke hardware and software solutions that constitute the CROWDNet platform, which implements and coordinates what we call User-Operated Network Infrastructure. With the support of patient investors, we transformed our ideas into technology solutions that address the challenge of digital exclusion. The iterative process of product and service development, coupled with gaining a deeper understanding of the target market, takes time. In South Africa, the scarcity of investors who are both willing and able to support this kind of journey heightens the challenge of achieving product-market fit.
Today, we have customers in Olievenhoutbosch enjoying uncapped internet access for only R99 per month. Our approach has proven successful in delivering meaningful internet access to households in low-income neighborhoods, providing our customers with the benefits of affordable, high-quality connectivity. As we continue to refine our technology and expand our reach, we are excited to connect more communities across South Africa and throughout the continent.
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