Alan Knott-Craig Jnr’s Fibertime Aims for JSE Listing by 2027

Alan Knott-Craig Jnr’s township fibre enterprise, Fibertime, is targeting a JSE listing by 2027.

Achieving this goal depends on the business scaling up to support a market capitalization of at least R20 billion to R30 billion.

Listen/read: How the telecoms sector can tackle South Africa’s structural challenges [Dec 2024]

In an interview with Moneyweb from Kayamandi – the township near Stellenbosch, where the company initiated its first fibre rollout – Knott-Craig noted that Fibertime’s listing ambition also relies on robust revenue growth fueled by an increasing number of connected homes.

A prominent tech entrepreneur (previously the CEO of mobile social networking platform Mxit and founder of iBurst), Knott-Craig forecasts that Fibertime will connect 400,000 homes by March next year.

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Fibertime launched in December 2022 during Stage 6 load shedding. Its business model incorporates providing a complimentary router in every home, targeting households in South Africa’s informal sectors.

However, launching amid severe load shedding necessitated that every fibre-to-the-home installation include a UPS (uninterruptible power supply). “Otherwise, what’s the point?” Knott-Craig states.

Fibertime is currently connecting homes in informal settlements – with an actively installed router – at a pace of 1,200 households daily.

Long-term, the objective is to connect eight million households across South Africa, although this requires R40 billion, he adds.

Beyond South Africa

Fibertime is also eyeing Botswana, Zimbabwe, the Philippines, and Latin America as potential markets after establishing its base in South Africa.

“However, for this to progress, we must have a strong operation in South Africa,” Knott-Craig explains.

To achieve the scale Fibertime envisions, he says the company utilizes a funding model based on a real estate investment trust (Reit) structure through Java Capital.

This April, the Competition Tribunal sanctioned a deal involving Fibertime, Refibre, and Onepath Investments.

Refibre and Onepath acquire internet fibre infrastructures and lease them back to companies (like Fibertime) supplying fibre internet to homes and businesses.

(As per MyBroadband, Refibre is headed by Andrew Brooking and Simon Fifield. Brooking is a founding director of Java Capital, a boutique advisory firm focused on corporate finance, mergers and acquisitions, and equity capital markets. Fifield is CEO of Capensis Real Estate and a director of Redefine Properties. Together with Jason van Wyk of Java Capital, they serve as directors of Onepath Investments.)

Funding model

Knott-Craig elaborates: “We established a funding structure with Java Capital. As we expand our networks, we sell them into Refibre, and investors in that vehicle receive a low-risk, decent return.”

The funding model – backed by a Reit – is “the holy grail” for every fibre firm globally, he asserts.

Knott-Craig reveals that Fibertime has secured approximately R1.6 billion so far, which is anticipated to support the goal of reaching 400,000 homes by March 2026.

Since its launch in December 2022 in Kayamandi, Fibertime has connected homes throughout Cape Town, Bloemfontein, Gqeberha, Durban, Johannesburg, and Pretoria.

Listen: Positive performance in the first half for Reits

The densely populated Alexandra township in northeastern Johannesburg, home to over 150,000 houses, has emerged as a significant project and is about 10% complete.

“The momentum we have now is unprecedented. Previously, we were merely telling a story,” Knott-Craig remarks. “Now, we’re connecting around 30,000 homes monthly. Yet, it’s still a small fraction.”

He estimates that out of 17 million households nationwide, roughly 80% lack access to fast, reliable, and affordable broadband.

Fibertime does not depend on government funding or grants. “As long as your business model doesn’t require government involvement, you’re fine,” he asserts.

Partnerships are vital

A crucial aspect of Fibertime’s expansion capacity stems from its collaboration with Nokia.

In November 2024, Nokia confirmed that Fibertime would utilize its optical network terminals (devices used in fibre-to-the-home infrastructures) in its deployment.

Read: Nokia teams up with MTN to enhance 5G in SA [Feb 2023]

“The Nokia partnership is thriving,” says Knott-Craig. “Additionally, RMB (Rand Merchant Bank) has supported us during challenging times.

“The reality is, people want this to succeed. This initiative is truly making a difference.”

Need for speed

Fibertime offers uncapped fibre access for R5 a day with limitless internet speeds, according to Knott-Craig.

“We’re firm in our belief that speed is critical. People may not yet acknowledge this, but for gaming or sports connectivity, speed is vital.

“Residents in the townships often hesitate due to data costs, but once they realize there are no hidden fees, they use it more. If you only need to connect for one day in a month, you can enjoy unlimited internet for just R5.”

Listen: The digital divide: Opportunities and risks [Nov 2024]

Fibertime collaborates closely with the communities where its services are offered. “We employ local individuals for installations, which has helped us avoid issues with vandalism and theft; we have never had to abandon any networks.”

Knott-Craig emphasizes that scalability is essential for Fibertime’s financial sustainability.

“Telecoms is all about scale – the larger you are, the lower the product cost you can provide.”

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