South Africa’s fibre broadband industry is increasingly losing technicians to the US broadband equity, access and deployment (BEAD) programme, exacerbating the shortage of fibre skills in the country.
This was the word from Juanita Clark, CEO of the Digital Council Africa and co-founder of FTTX Council Africa, speaking at the recent Digital Infrastructure Investment Summit 2024, in Johannesburg.
According to Clark, the BEAD and similar programmes have seen SA’s fibre market losing talent, as the demand for IT skills intensifies across the globe.
The BEAD programme is an initiative established by the US government to expand fibre deployment in the underserviced areas of the country. It provides $42.45 billion in funding to fibre installation companies, to help them expand high-speed internet access for broadband planning, deployment, mapping, equity and adoption projects and activities in all 50 states.
From early last year, eligible US broadband service providers have been submitting initial proposals, which outline their objectives for broadband deployment.
The BEAD notice of funding allocations was released in June 2023, with the recipients receiving the total funding allocation or minimum initial allocation.
Over the last few months, some recipients have been ramping up their hiring initiatives and scouting for talent within and outside of the US.
According to a study by the Fibre Broadband Association (FBA) and Power & Communication Contractors Association, the BEAD initiative faces large-scale workforce shortages, amid an urgent need to recruit and train nearly 180 000 workers in order to meet its objectives.
The study predicts the amount of federal and state broadband funding will exceed the engineering, permitting, locating and construction workforce capacity to absorb it, resulting in bottlenecks.
The research suggests construction activity supported by federal and state funding will be pushed two to three years into the future, nearing the funding expiration date and complicating construction overall.
“The US’s successful broadband access fund focuses on deployment of fibre, as they have a deficit of skills. They need to create over 180 000 jobs in the fibre industry alone. Unfortunately, a lot of our South African capacity are flying to the US to go and take on those jobs,” explained Clark.
There are over 100 federal programmes in the US that focus on funding opportunities related to broadband.
Deborah Kish, VP of research and workforce development at the FBA, comments: “It is certainly an exciting time for the US broadband industry, as approvals for federal and state funding are announced weekly. However, without the proper workforce levels, bottlenecks will choke and slow broadband deployment processes in unanticipated ways.”
A report by Africa Analysis reveals the fibre-to-the-business market in SA has seen rapid growth. By the end of September 2023, this market reached over 243 000 active endpoints, registering a 6.4% year-on-year growth rate, it says.
According to fibre provider Fibre Systems, the global telecoms industry is grappling with a critical skills shortage, threatening innovation and growth.
“As we approach 2025, bridging this gap through investing in apprenticeship programmes, upskilling current employees and forming strong partnerships with educational institutions is vital,” notes the company.
Collaboration among industry leaders, academia and government is essential to create a dynamic workforce capable of meeting future challenges, it says.
South African telecommunications companies are also struggling to find and retain skilled employees, which is threatening their profits and longevity, according to Evelyn Vanassche, recruitment cluster head at recruitment firm Workforce Holdings.
“The demand for highly-skilled professionals continues to outpace the available talent pool, and yet without these skills, businesses will increasingly struggle to remain relevant and sustainable.
“Addressing this challenge is not only about hiring the right talent, which is in short supply, but also about mapping out plans for training and upskilling future generations.”
With the telecoms space being a highly niche market that is specialised and critical to so many elements of modern life, there has been a growing trend among South African companies opting to turn to overseas recruitment to bridge the skills gap, adds Vanassche.
Clark added that SA’s burgeoning fibre market presents infinite opportunities; however, there is plenty of catching up to do in terms of connecting the underserviced areas of the country.
“If we can get a good solid fund going in SA, we would be able to achieve a lot in the local fibre market.”
The Digital Council Africa is an independent, non-profit organisation dedicated to leveraging digital infrastructure to ensure all Africans have access to quality connectivity.
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