Openserve's CEO Says Its New ISP Will Close a 722,000-Home Connectivity Gap
Telkom CEO Serame Taukobong told Business Day today that Openserve ISP, three weeks old, exists specifically to close the gap between the 1.57 million homes Openserve's fibre passes and the 843,563 it has connected. Here's what's verified, what resellers already charge on the same network, and what to do if you're one of those homes.

In this article(8)
- 01What happened today
- 02How we got here: five weeks from launch to this interview
- 03What Openserve says, and what its wholesale partners say
- 04What Openserve-network fibre costs through resellers right now
- 05What this means if you live in the coverage area
- 06What to watch next
- 07Bottom line
- 08Frequently asked questions
What happened today
In an interview published by Business Day on 8 August 2026, Telkom Group CEO Serame Taukobong gave the clearest public statement yet of why Openserve launched its own retail ISP: to chase down the gap between homes its fibre network already reaches and homes that have actually signed up. "That's a key focus of this ISP," Taukobong said. "It is something not totally different to what other operators are doing."
He put a number on it too: "One of the key focus areas we've set for Openserve is we need to get our connectivity rate from 53% to 60%." Telkom's own Q1 FY2027 trading update, published five days earlier on 3 August, puts the precise figure at 53.9% - 843,563 homes connected out of 1,565,750 passed, leaving roughly 722,000 homes that have fibre available at the pavement but no active connection.
| Metric | Value | Detail |
|---|---|---|
| Homes passed | 1,565,750 | Openserve network, Q1 FY2027 |
| Homes connected | 843,563 | 53.9% of homes passed |
| Passed but unconnected | ~722,000 | The gap Taukobong says the ISP now targets |
| Stated target | 60% | Connectivity rate Openserve says it wants to reach |
How we got here: five weeks from launch to this interview
Today's comments don't stand alone - they're the latest step in a dispute FastestFibre has been tracking since Openserve's ISP first went live. Here's the sequence, each step sourced to the same-day reporting:
- 14 July 2026Openserve launches its own retail ISP
Openserve ISP goes live selling uncapped fibre direct to consumers at R345-R1,449/month, month-to-month, no install fee, free Wi-Fi router. ISPA tells TechCentral its members are worried, and flags wholesale call-termination-rate hikes that have pushed some wholesale costs hundreds of rands above Openserve's own retail prices.
- 20 July 2026Openserve responds to the fairness complaints
Openserve tells TechCentral it holds roughly 21% of homes passed and 20% of connected homes - below the Competition Act's 35% dominance threshold - and says its ISP buys lines on the same published Webstream terms as any reseller. It does not commit to written equivalence or independently audited transfer-pricing undertakings.
- 22 July 2026Wholesale partners push back
Easttel CEO Mark Gray goes on record: "In a market with this history, a promise is not enough. Equality must be auditable." ISPA says it is gathering members' views and may escalate to Openserve's management or competition authorities.
- 3 August 2026Telkom's Q1 FY2027 trading update
Telkom reports Openserve revenue of R3.3bn (+5.6%), homes passed up 10.7% to 1,565,750, and homes connected up 16.6% to 843,563 - a connectivity rate of 53.9%, climbing faster than the network itself is growing.
- 8 August 2026The CEO names the target
Telkom Group CEO Serame Taukobong tells Business Day the ISP exists specifically to close the gap between homes passed and homes connected, and states a goal of lifting connectivity from "53%" to 60%.
| Date | Milestone | What happened |
|---|---|---|
| 14 July 2026 | Openserve launches its own retail ISP | Openserve ISP goes live selling uncapped fibre direct to consumers at R345-R1,449/month, month-to-month, no install fee, free Wi-Fi router. ISPA tells TechCentral its members are worried, and flags wholesale call-termination-rate hikes that have pushed some wholesale costs hundreds of rands above Openserve's own retail prices. |
| 20 July 2026 | Openserve responds to the fairness complaints | Openserve tells TechCentral it holds roughly 21% of homes passed and 20% of connected homes - below the Competition Act's 35% dominance threshold - and says its ISP buys lines on the same published Webstream terms as any reseller. It does not commit to written equivalence or independently audited transfer-pricing undertakings. |
| 22 July 2026 | Wholesale partners push back | Easttel CEO Mark Gray goes on record: "In a market with this history, a promise is not enough. Equality must be auditable." ISPA says it is gathering members' views and may escalate to Openserve's management or competition authorities. |
| 3 August 2026 | Telkom's Q1 FY2027 trading update | Telkom reports Openserve revenue of R3.3bn (+5.6%), homes passed up 10.7% to 1,565,750, and homes connected up 16.6% to 843,563 - a connectivity rate of 53.9%, climbing faster than the network itself is growing. |
| 8 August 2026 | The CEO names the target | Telkom Group CEO Serame Taukobong tells Business Day the ISP exists specifically to close the gap between homes passed and homes connected, and states a goal of lifting connectivity from "53%" to 60%. |
Read the full detail on the launch and the rebuttal in our earlier coverage: Openserve Just Became Its Own Competitor and Openserve Fires Back in the Fibre ISP Row.
What Openserve says, and what its wholesale partners say
Today's interview restates Openserve's side of an argument that was already open. Nothing here is a rebuttal or a resolution - it's worth laying the two positions side by side as they stand right now:
| Claim | Openserve's position | Wholesale partners' position |
|---|---|---|
| Market power | ~21% of homes passed, ~20% of homes connected - "well below" the Competition Act's 35% dominance threshold. | Market-share defence doesn't answer the specific complaint: incentives concentrated on the packages Openserve's own ISP sells. |
| Equal wholesale treatment | Says its ISP buys on the same published Webstream terms available to any of its 150 partner ISPs. | Declined written equivalence or independently audited transfer-pricing undertakings. Easttel's Gray: "Equality must be auditable." |
| Free router + no install fee | Frames these as standard wholesale constructs open to every reseller on the same terms, not a retail-only perk. | ISPA points to wholesale call-termination-rate hikes pushing some resellers' costs hundreds of rands above Openserve's own retail price. |
| Strategic intent | Taukobong: targeting the connectivity gap is "not totally different to what other operators are doing." | Not yet directly addressed by ISPA or Easttel as of publication. |
What Openserve-network fibre costs through resellers right now
Openserve ISP's own uncapped range runs R345 to R1,449 a month, per TechCentral's 13 July report on the launch - but that report didn't publish a tier-by-tier breakdown, and Openserve hasn't disclosed one publicly, so we can't map its price list speed by speed. What we can do is show what resellers on the same Openserve network already charge today, pulled live from FastestFibre's own tracked catalogue - the cheapest price at each speed tier, across every reseller ISP we track:
| Speed tier | Cheapest price | Reseller |
|---|---|---|
| 30/30 Mbps Uncapped | R439/month | Webafrica |
| 50/25 Mbps · prepaid pass | R445/month | RSAweb |
| 75/75 Mbps Uncapped | R845/month | RSAweb |
| 100/50 Mbps Uncapped | R789/month | Mweb |
| 200/100 Mbps Uncapped | R959/month | Mweb |
| 300/150 Mbps Uncapped | R1 159/month | Mweb |
| 500/250 Mbps Uncapped | R1 339/month | Webafrica |
| 1000/500 Mbps Uncapped | R1 695/month | RSAweb |
The entry end is the clearest read: R345 undercuts every reseller's cheapest Openserve package in our catalogue by a wide margin, which is exactly the kind of gap ISPA's members flagged when the ISP launched. At the top end, R1,449 sits inside the range resellers already charge for their fastest Openserve packages - not obviously predatory on its own, but the comparison only works one speed tier at a time, and Openserve hasn't given us the tiers to check it properly.
What this means if you live in the coverage area
Are you one of the roughly 722,000 unconnected homes?
Openserve's stated target is to convert exactly this group. Here's how to work out if that's you, and what to check before signing up with anyone.
- Q1
Does Openserve fibre already reach your street, but you've never taken a plan?
- Yes → You're likely inside the group Taukobong is targeting. Compare Openserve ISP's own uncapped pricing (R345-R1,449/month, no install fee, free router) against reseller options on the same network before committing - use the live price table above as a starting point.
- Not sure → Check live coverage from Openserve and every other major network at the same address.
- Q2
Are you already a paying customer of a reseller ISP on the Openserve network?
- Yes → Nothing in your contract changes today. Openserve says wholesale terms are unchanged and published to every reseller equally - but that claim is exactly what ISPA and Easttel are disputing, and no audited proof has been published yet.
- No, I'm on a different network entirely → This dispute doesn't affect your service. It's still worth watching if you ever plan to move address into an Openserve-only area.
- Q3
Are you weighing Openserve ISP against a reseller ISP on the same network?
What to watch next
Three things would move this story forward: Openserve publishing a tier-by-tier retail price list so its own ISP can be compared speed-for-speed against resellers; ISPA confirming whether it has escalated to competition authorities, as it said in July it might; or Openserve agreeing to the independently audited transfer-pricing undertaking Easttel's Mark Gray called for. We'll update this article, or publish a follow-up, on whichever of those happens first.
Bottom line
Openserve's CEO used a Business Day interview to put a public number on why the company's three-week-old retail ISP exists: closing a roughly 722,000-home gap between homes passed and homes connected, and lifting connectivity from 53.9% to 60%. That's a real, verified figure from Telkom's own trading update - but it's also Openserve's own framing of a strategy that wholesale partners are still disputing on fairness grounds, and today's interview doesn't add anything new to that side of the argument.
If you're in the target group - fibre already passes your home and you haven't connected - the practical move is the same regardless of how the dispute resolves: compare the actual monthly price at your speed tier across Openserve ISP and the resellers on the same network, using real numbers rather than headline freebies.
Frequently asked questions
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