Summary

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Fully describe the business's activities?

Acorn Broadband is an established fixed-wireless internet service provider (WISP) operating in the Garden Route region of the Western Cape, and the Sarah Baartman district in the Western Cape, South Africa. The business provides uncapped wireless broadband internet to residential and small-business customers across its coverage footprint.

The company operates its own wireless network infrastructure — a series of high-site base stations and access points linked by wireless backhaul — delivering connectivity to approximately 1,180 active subscribers via customer-premises equipment installed at each site. Services are billed on a recurring monthly subscription basis, generating stable monthly recurring revenue with an average revenue per user of approximately R400.

Day-to-day operations comprise network monitoring and maintenance, customer support, new customer installations, and billing and collections, supported by a small operational team and field technicians. The business uses an industry-standard subscriber management and billing platform (Splynx) integrated with its network for authentication, provisioning and automated billing.

How does the business operate on a daily basis?

Day-to-day, the network is monitored continuously to ensure uptime and performance, with faults identified and resolved by the technical team either remotely or through on-site call-outs. Field technicians carry out new customer installations and repairs across the coverage area. Office staff handle customer support and queries, manage billing and collections through the Splynx platform (which automates monthly invoicing, payment collection and service provisioning), and onboard new customers. Network capacity, base stations and backhaul links are maintained and upgraded as required. The business runs on recurring monthly subscriptions, so daily activity centres on keeping the network stable, supporting existing customers, collecting payments and connecting new subscribers.

What Advertising/Marketing is carried out?

The business does very little active advertising, as it is well established and well known in the areas it operates. Marketing is carried out primarily through social media, together with a referral model whereby existing customers refer new subscribers. The company's strong local reputation and word-of-mouth within the communities it serves generate ongoing demand without the need for significant paid advertising.

What competition exists?

Herotel, TCS, all the fibre providers etc.

How could the profitability of the business be improved?

There are several clear opportunities to improve profitability. Collections and churn management offer the most immediate gains — refining the billing and payment processes (payment-date alignment, automated retries and dunning) would reduce involuntary customer losses and recover revenue. Reactivating and winning back previously disconnected customers, whose equipment often remains installed, provides low-cost revenue recovery. Selective network expansion into adjacent underserved areas would add subscribers at incremental cost on existing infrastructure. Package and pricing optimisation, along with upselling higher-speed tiers to existing customers, would lift average revenue per user. For an acquirer with existing operations, there is also significant scope to reduce overheads by absorbing the subscriber base onto shared infrastructure, support and back-office systems, improving margins beyond what the business achieves on a standalone basis.

Give a breakdown of staff/ functions/ length of service?

Office Technical Support - 2.5 years
Office - Accounts - less than 1 year
Field Technician 1 - 5 years
Field Technician 2 - 2.5 years
Field Technician 3 - less than 1 year

Do any have management potential?

How involved is the Owner in running the business?

One of the owners manages the more technical aspects of the network. The other owner runs the day to day operations with the team all reporting to him.

When does the current lease end?

N/A

What are the trading hours?

8-5pm, Mon - Fri

What are the main assets of the business?

The wireless network, two NP 200 bakkies 2015, Renault Van 2023 (wrote off), office equipment.

Strengths?

Established subscriber base of ~1,180 paying customers on recurring monthly billing, generating stable predictable revenue
Strong local reputation and brand recognition across the Garden Route and Sarah Baartman District, driving low-cost customer acquisition through referrals and word of mouth
Owns its wireless network infrastructure (high sites, backhaul, access points), with coverage in areas underserved by fibre
Runs on an industry-standard billing and network management platform (Splynx) with automated invoicing and provisioning
Profitable and cash-generative, with a lean operational team and low marketing spend
Serves many rural and outlying areas where fixed-wireless remains the most practical connectivity option, limiting direct competition

Weaknesses?

Reliance on wireless technology, which is less future-proof than fibre in areas where fibre becomes available
Customer churn linked to involuntary non-payment, with collections processes that are being improved
Dependence on a small team and key operational knowledge
Average revenue per user (~R400) is modest, typical of the residential fixed-wireless segment

Opportunities?

Win-back of previously disconnected customers whose equipment remains installed, at low cost
Collections and billing improvements to reduce involuntary churn and recover revenue (already underway)
Network expansion into adjacent underserved areas at incremental cost on existing infrastructure
Upselling higher-speed packages and optimising pricing to lift ARPU
For an acquirer, significant synergies by absorbing the subscriber base onto existing infrastructure and back-office, improving margins beyond standalone levels

Threats?

Fibre roll-out expanding into parts of the footprint, increasing competition in denser areas
Mobile/LTE and satellite (e.g. Starlink) as alternative connectivity options
Load-shedding and power reliability affecting network uptime and operating costs
Rising infrastructure, bandwidth and equipment costs

What is the reason for the sale?

The shareholders are consolidating their business interests and exiting their South African operations, and are therefore looking to sell the business as a going concern to an operator well positioned to take it forward.