Johannesburg: Comsol.co.za, a South African fixed wireless connectivity and private network operator with nearly three decades of experience, has announced its entry into the home broadband market as a wholesale provider of 5G infrastructure. This strategic move is supported by new shareholders, Platform Investment Partners and Wimsey Capital. Platform Investment Partners has a track record of making 10 founder-stage fiber investments across four geographies within the past decade, while Wimsey Capital is a privately held investment company.
According to African Press Organization, the new investment follows the exit of Nedbank Private Equity from its stake in Comsol. Convergence Partners, a significant shareholder, alongside Solcon Capital, is injecting further growth capital into the business. Founder and CEO Iain Stevenson, through Mactavish Investments, retains his stake and is also contributing additional capital. RMB has arranged and provided a comprehensive funding solution to facilitate the shareholder transaction, aiding the company's strategic capital expenditure roll-out plan.
The initiative provides South African internet service providers, mobile virtual network operators (MVNOs), and other potential partners with access to a standalone 5G-Advanced network specifically designed for fixed wireless access (FWA). Comsol will own and operate this network as an end-to-end wholesale product, while partners will manage customer relationships and market strategies, including branding, commercials, and support.
Comsol has already covered more than one million households in Gauteng since it began building its network six months ago and aims for full coverage of Gauteng by March 2027. The company plans to expand into the Western Cape, KwaZulu-Natal, and other major regional centers by 2027 and 2028. Its goal is to deploy around 2,000 base stations across South Africa, creating one of the largest standards-based and highest-capacity 5G networks in the country.
The wholesale 5G-Advanced offering aims to complement existing fiber networks, enhancing consumer choice and expanding home connectivity. Approximately 15% of South African households currently have fiber connections, mostly in dense metro areas. The 5G FWA network provides a quick, cost-effective solution to reach suburban markets, with Comsol's network capable of covering entire towns in a matter of weeks.
Regulatory and technological advancements have bolstered the commercial case for 5G-Advanced FWA home connectivity. Comsol received its C-band spectrum license from ICASA in 2022, providing investors with the confidence to fund the network rollout. The allocated spectrum supports competitive pricing for consumers, while decreasing costs for 5G chipsets and CPE have lowered entry costs for consumers and ISPs.
Comsol's network is one of only two production 5G standalone cores currently operational in South Africa, offering ultra-low latency and dedicated capacity control not achievable by hybrid 4G/5G networks. Its implementation of 5G-Advanced is IMT-conformant, leveraging standards-based technologies to deliver greater capacity at a lower cost per bit.
As a wholesaler, Comsol does not compete with its consumer-facing partners, allowing ISPs and other partners to maintain control over market strategies. Comsol's API-driven platform enables partners to introduce a branded 5G-Advanced FWA offering to market quickly, providing flexibility to adapt and create differentiated packages for various customer segments swiftly.
Shaun Clark, CEO of Platform Investment Partners, expressed the firm's long-standing interest in open-access digital infrastructure in South Africa, highlighting Comsol's fit within their portfolio. Richard Ladbrook, Director of Wimsey Capital, recognized the significant opportunity 5G FWA presents in bringing connectivity to more South African households.
Andile Ngcaba, executive chairman of Convergence Partners, emphasized Comsol's strategic positioning as the world transitions from 5G to 6G, stressing the opportunity to serve South Africa's enterprise, private, and public sectors. Yougan Moodley of Nedbank Private Equity noted the successful conclusion of their nine-year investment in Comsol, leaving the company well-positioned for future growth.