by Mandy de Waal (@mandyldewaal) Telkom, the gorilla in the ring, promises that its fibre network will have some 1m homes connected by 2018. But don’t discount Metrofibre Networx, a newer brand in the telecommunications sector, which is run by former career banker, Steve Booysen, and backed by local heavyweights.
Need for speed
The home fibre market is hotting up as urban South Africans feel the need for speed. Content services such as the arrival of streaming home entertainment, in particular, is driving the thirst for high-speed internet connectivity. On the one hand, fibre-to-the-home (FTTH) offers consumers IP telephony, videoconferencing (in the form of services such as Skype) and high-quality video-streaming of entertainment services such as Netflix and Showmax. Businesses, on the other hand, look to fibre so that they can cost-effectively implement cloud-based solutions, engage a distributed workforce or partner network without leaving the office, or reduce telephony costs.
Resources billionaire Patrice Motsepe invested R220m in Metrofibre Networx in March 2016 in a deal represents an 18.14% stake for Motsepe’s African Rainbow Capital in the fibre network provider. The company also enjoys active shareholding from Sanlam Private Equity (SPE), which has representation on the Metrofibre Networx board. SPE invested in the fibre company in 2013 to grow its own fibre network, marking the first investment of this nature for Sanlam.
The company, in which Booysen has a solid personal stake, owns and manages SA’s first globally compliant Carrier Ethernet 2.0 (CE 2.0) open-access fibre network. CE 2.0 is a next-generation network protocol that provides improved access, scalability and reliability. [Between the lines, read ‘wired for speed’, volume and quality].
At 53, Booysen says he is “having a lot of fun” in his current position as executive chairman and CEO of Metrofibre Networx. The inside track on the R180m deal he did with African Rainbow Capital? “I don’t subscribe to opportunistic approaches, but rather work from illustrated value, backed by a prudent business case, business model and a management team that subscribes to, and lives by, a sound value system.”
Booysen’s background
Who is Booysen and where does he come from? A glance at Booysen’s CV shows that he lectured in accounting at Unisa and has held senior positions at both Trust Bank and Absa. Booysen’s very public exit from Absa in 2009 and Maria Ramos’s entrance is old news, save to say Booysen was characteristically reserved and would not be drawn into vulgar speculation about his departure.
What has spoken for Booysen instead has been his solid record as a career banker. When he left the bank, the former CEO was snapped up by the market — Booysen got posts as chairman of Efficient Group, non-executive director of Steinhoff, non-executive director of Clover, deputy chairman of Senwes and non-executive director of Vukile Properties.
But Metrofibre Networx is Booysen’s core focus now. We speak to Booysen about life, business and the need for speed.
Mandy de Waal: What motivates you?
Steve Booysen: I enjoy being part of an entrepreneurial business, a sector that is progressive, while working with a leadership team with value systems that I am aligned with. I’m passionate with what I’m doing and I am having a lot of fun.
MdW: Why telecoms? What excites you about this industry?
SB: Telecoms is recognised as the fourth utility after roads, water and electricity (energy). Fibre connectivity is in its infancy and the market will expand exponentially in the next 5–7 years, resulting in countless business opportunities. It is a fast-paced ever-changing environment. FTTH explosion is an exciting space to be in.
MdW: Metrofibre is a bit of a ‘David’ amongst the ‘Goliaths’ of the telecoms industry. How is Metrofibre differentiated from the other players? What sets you apart or makes the brand ‘special’?
SB: Although Metrofibre is a smaller and relatively new player in the industry, we had the privilege to build our network with the latest carrier grade Ethernet technology without the concerns of interfacing with legacy (old) technology. Our size allows us to be agile [and] take fast decisions, which enables us to quickly adapt to customer requirements. We are an open-access partner allowing other participants in the market to compete for the customers’ business. Consolidation in the sector is inevitable and will result in opportunities for corporate activity.
MdW: How did the investment with African Rainbow Minerals come about?
SB: We are currently in the process of raising R400m additional capital to grow the business. The African Rainbows Capital investment is part of that capital raising process, which has substantially been completed. We still need to raise a further R180m to complete the capital raise — any interested investors are welcome to contact me.
MdW: What does the investment mean for Metrofibre?
SB: It allows us the opportunity to expand our network footprint, [the] upgrading the capacity of our network and improving the levels of service to our customers.
MdW: How does fibre change things?
SB: Fibre provides us with not only with access to the internet, but the low latency and high bandwidth [are] an enabler for cloud computing, movie streaming, interactive gaming, online education, automation of household appliances, faster mobile access and many other services not possible without high-speed connectivity.
MdW: What comes next — after fibre?
SB: It is hard to tell, but the communications industry pulls together an enormous number of suppliers and consumers at the forefront of technology development, which opens innovation at an unpredictable, almost explosive manner. Gone are music stores, book shops and a number of other sectors that are struggling to reinvent themselves to new sustainable business models.
Congestion of the wireless spectrum, especially which allows for mobile access, is going to place more and more demands on fixed-line access and fixed-line backhaul. The latest advantage in fibre technology is going to significantly improve the performance of fibre networks — both in reach and in capacity. The growth in bandwidth demand is going to outstrip the advances in technology. Bandwidth growth — specifically to homes — will grow exponentially over the next 5–7 years. This growth will be driven by new applications still not known yet: an exciting prospect.
MdW: What’s your hope for technology and telecoms in this country, for the role it could play?
SB: It delivers the content of knowledge, collaborative interaction and climate for growth: it is the single biggest leverage point to turn the success of a country.
The hope is, therefore, that local government embraces fibre-optic rollout programmes which will result in economic and social well-being to their residents and entrepreneurs. A fibre connectivity community has the potential to enable the efficient and cost-effective delivery of services, such as health, education and social upliftment.
Just think of the explosion and power of social media applications such as Facebook and Twitter. Human beings love to communicate.
MdW: Who do you most admire, and why?
SB: I [have] had four mentors during my lifetime. The first one taught me that discipline, hard work and commitment will stand you in good stead. The second one taught me to listen to fellow colleagues, and that listening will enable you to take better-informed decisions to the benefit of the organisation. The third one taught me ‘believe in yourself, be unconventional and let people underestimate you at their peril’. The last one taught me to stick to your principles no matter what, live your values and to be humble on your achievements.
MdW: What is the most important leadership lesson you’ve learned?
SB: You never stop learning. Decision-makers will always make mistakes — the important lesson is not to repeat them, take swift corrective action and move on. When taking decisions, leverage the wisdom at your disposal, often your leadership team, colleagues and mentors.
All photographs used in this piece are courtesy of Lebz Skywalker. Follow him on Twitter or on Instagram.
Mandy de Waal is a writer based in KwaZulu-Natal, South Africa, as well as contributing editor to MarkLives.com through her monthly “Africa Dispatches” column. Follow her on Twitter at @mandyldewaal or email her at MandyLdeWaal [@] gmail.com.
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