The Private Equity team at Nedbank Corporate and Investment Banking (CIB) has become a 25% shareholder in Comsol Networks, alongside existing shareholders Convergence Partners and the management team of Comsol.

Comsol Networks is a recognized market leader in South Africa that specializes in building customized terrestrial wireless access infrastructure for companies, government entities and parastatals of all sizes, across all sectors.

Backed by its shareholders, Comsol has launched Comsol Fibre Connect, South Africa’s first and only nationwide open access high-speed carrier grade data network.

The network will connect enterprises in both major metros and small towns.

Clive Howell, Head of Nedbank Private Equity, said: “We are pleased to be working alongside the experienced management team of Comsol and co-investors Convergence Partners, a longstanding partner of the Nedbank Group.”

“We are excited about Comsol’s prospects and the rollout of Comsol Fibre Connect, particularly of the ability for their network to reach previously inaccessible areas,” he said.

The initial funding which equates to over R500m ($34.17m) will be provided by Convergence Partners, Nedbank Private Equity and the IDC.

In addition to the funding raised for the initial rollout, Comsol expects to reinvest and spend a further R1bn on existing fibre infrastructure and leased fibre, creating a massive opportunity for existing fibre players in the market.

Iain Stevenson, CEO of Comsol, said: “With the advent of Big Data, Internet of Things and cloud-based business applications and the increasing need for companies to use high-speed connectivity, the requirement for high-speed internet access is growing across businesses of all sizes and in all sectors.”

He added that despite the investments made into fibre networks, they are not yet far-reaching enough, take too long to deploy and are extremely expensive for the provider to build everywhere.  

Comsol Fibre Connect will not only allow companies to access the speeds and quality of fibre connectivity in much faster deployment times at a lower cost, but it also offers true coverage for the majority of businesses across the country – even those with branches in outlying areas.

Andile Ngcaba, Chairman of Convergence Partners, said: “For many years, wireless and other technologies were associated with being contended and unstable. Now, with advances in new milimetre wave spectrum technologies and the abundance of fibre backbone available and capillary network, businesses have the means to tap into a mixed medium, fully licensed capacity that enjoys the same quality, speed and reliability that, to date, fibre-only solutions could previously deliver.”

In addition to its extensive coverage in the major metros, cities and district councils, Comsol will connect over 200 towns and cities across the country via Comsol Fibre Connect. Deployment in outlying areas has begun, with majority of towns to be connected by December this year.

Natasha Haslam of the IDC, said: “It fits perfectly in to aiding our strategy of increasing penetration of high-speed connectivity and reducing costs through infrastructure sharing. It is hoped that this network will enhance communications for businesses in underserviced areas and aid in narrowing the digital divide.”