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    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.

    FastestFibre Editorial12 min read
    Abstract illustration of a fibre network map with a gap between connected nodes highlighted, representing homes passed but not yet connected
    In this article(8)
    1. 01What happened today
    2. 02How we got here: five weeks from launch to this interview
    3. 03What Openserve says, and what its wholesale partners say
    4. 04What Openserve-network fibre costs through resellers right now
    5. 05What this means if you live in the coverage area
    6. 06What to watch next
    7. 07Bottom line
    8. 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.

    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
    Source: Telkom Q1 FY2027 trading update (3 Aug 2026); Business Day interview with Serame Taukobong (8 Aug 2026). The connectivity gap Openserve's CEO says its new retail ISP exists to close. As of 8 August 2026.
    Source: Telkom Q1 FY2027 trading update (3 Aug 2026); Business Day interview with Serame Taukobong (8 Aug 2026). The connectivity gap Openserve's CEO says its new retail ISP exists to close. As of 8 August 2026.
    MetricValueDetail
    Homes passed1,565,750Openserve network, Q1 FY2027
    Homes connected843,56353.9% of homes passed
    Passed but unconnected~722,000The gap Taukobong says the ISP now targets
    Stated target60%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:

    1. 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.

    2. 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.

    3. 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.

    4. 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.

    5. 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%.

    Source: TechCentral (13, 20 Jul 2026); Telkom Q1 FY2027 trading update (3 Aug 2026); Business Day (8 Aug 2026). From the ISP's launch to today's connectivity-gap interview.
    Source: TechCentral (13, 20 Jul 2026); Telkom Q1 FY2027 trading update (3 Aug 2026); Business Day (8 Aug 2026). From the ISP's launch to today's connectivity-gap interview.
    DateMilestoneWhat happened
    14 July 2026Openserve launches its own retail ISPOpenserve 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 complaintsOpenserve 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 backEasttel 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 updateTelkom 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 targetTelkom 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:

    ClaimOpenserve's positionWholesale 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 treatmentSays 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 feeFrames 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 intentTaukobong: 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.
    Source: TechCentral, 13 and 20 July 2026; ISPA statements via TechCentral. As of 8 August 2026.

    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 tierCheapest priceReseller
    30/30 Mbps UncappedR439/monthWebafrica
    50/25 Mbps · prepaid passR445/monthRSAweb
    75/75 Mbps UncappedR845/monthRSAweb
    100/50 Mbps UncappedR789/monthMweb
    200/100 Mbps UncappedR959/monthMweb
    300/150 Mbps UncappedR1 159/monthMweb
    500/250 Mbps UncappedR1 339/monthWebafrica
    1000/500 Mbps UncappedR1 695/monthRSAweb
    Source: FastestFibre's tracked deal catalogue, cheapest live price per speed tier on the Openserve network across every reseller ISP we track. As of 8 August 2026. Openserve ISP's own R345-R1,449 range is per TechCentral, 13 July 2026 - Openserve has not published a tier-by-tier breakdown, so a direct like-for-like comparison isn't possible from public information.

    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.

    1. Q1

      Does Openserve fibre already reach your street, but you've never taken a plan?

    2. Q2

      Are you already a paying customer of a reseller ISP on the Openserve 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

    Openserve ISP is Telkom's Openserve division selling fibre directly to consumers, launched 14 July 2026. It sells uncapped fibre at R345-R1,449/month, month-to-month, with no install fee and a free Wi-Fi router - a departure from Openserve's prior wholesale-only, open-access model.

    Around 722,000. Telkom's Q1 FY2027 trading update (3 August 2026) reported 1,565,750 homes passed by Openserve's fibre network and 843,563 actually connected - a 53.9% connectivity rate, leaving roughly 722,000 homes with fibre available but not taken up.

    At the entry tier, its stated R345/month undercuts every reseller's cheapest Openserve package we track. At the top tier, its R1,449/month sits inside the range resellers already charge for their fastest Openserve packages. Openserve hasn't published a full tier-by-tier price list, so a like-for-like comparison at every speed isn't possible from public information.

    No. As of 8 August 2026, Openserve has stated its market share sits below the Competition Act's dominance threshold but has not offered written equivalence or independently audited transfer-pricing undertakings that wholesale partners, including Easttel, have asked for. ISPA said in July it may escalate the matter to competition authorities.

    Not directly. Openserve says wholesale terms available to resellers are unchanged. If you're a reseller-ISP customer on the Openserve network, nothing in your contract changes today - but it's worth watching this story if the fairness dispute escalates further.

    Help someone else pick the right fibre

    Find out if fibre already passes your address

    Check live coverage from Openserve and every major network, then compare real reseller prices before you sign up with anyone.

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