Comsol, a South African telecommunications company, has secured an undisclosed investment of billions of rands to establish a national wholesale 5G broadband network. This marks a big shift f
Comsol, a South African telecommunications company, has secured an undisclosed investment of billions of rands to establish a national wholesale 5G broadband network. This marks a big shift from its focus on business connectivity to the home internet market.
The company has started rolling out this network, which currently reaches over one million households, with plans to expand further across the country by the end of 2026. The goal is to set up around 2,000 base stations nationwide.
What sets Comsol apart from traditional mobile operators is its wholesale-only model. Instead of selling internet packages directly to customers, Comsol provides the essential 5G infrastructure that internet service providers (ISPs), mobile virtual network operators (MVNOs), and other resellers can use to create and market their own broadband services.
5G in South Africa (IM: TechCentral) One can think of it like electricity; Comsol generates the power, while others sell the electricity under their own names.
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This approach has its advantages, especially in South Africa. By not competing with consumer brands, Comsol avoids the high costs associated with retail marketing and customer acquisition. Additionally, it eliminates conflicts of interest since it doesn’t compete with the resellers using its network, making it a reliable partner for ISPs and MVNOs that need 5G capacity without the hassle of building their own infrastructure.
Comsol CEO Iain Stevenson Where Comsol fits in South Africa’s 5G landscapeSouth Africa’s journey into 5G technology started in 2020, when Vodacom and MTN launched the first commercial 5G services after successful spectrum auctions. Another operator, Rain, has developed its own significant presence in the 5G space by providing a data-only, fixed wireless service designed for home broadband users. Telkom has also expanded its 5G coverage across key urban areas.
Comsol is entering the market, but instead of directly competing with these companies, it aims to be a wholesale provider. This means Comsol will offer capacity to smaller businesses, allowing them to access its network without having to invest heavily in building their own infrastructure. This is crucial for South Africa, where many areas, particularly peri-urban and underserved regions, still lack reliable high-speed broadband.
Comsol plans to create a nationwide wholesale 5G network featuring 2,000 base stations. This initiative could enhance coverage in regions that larger retail operators have neglected. By enabling multiple smaller resellers to use the same infrastructure, Comsol helps share the costs of deployment, making it more financially viable.
While the exact amount of funding Comsol received hasn’t been disclosed, it is described as a multibillion-rand investment, indicating a strong commitment to developing national infrastructure. Comsol has not revealed its investors or the specific nature of the funding, whether through loans, stock sales, or both.
For South African households that currently depend on fixed-line fibre, outdated DSL, or high-cost mobile data packages for their internet needs, the growth of wholesale 5G infrastructure means more competition at the reseller level. This competition is likely to lead to better options and lower prices for consumers in the long run.
