South Africa’s telecommunications industry generated $14.4 billion in revenue in 2024, fueled by rising demand for mobile data and fixed broadband services, according to the Independent Communications Authority of South Africa (Icasa).
The findings, detailed in Icasa’s annual State of the ICT Sector report, highlight a sector transitioning rapidly toward data-driven connectivity amid declining traditional voice services.
Mobile service revenue grew 10% year-on-year, while fixed internet and data services surged 15%, reflecting what Icasa called a “significant shift toward high-speed internet solutions.” Social media platforms emerged as a key revenue driver, with telecom operators capitalizing on digital engagement for advertising and customer outreach. The report, now in its tenth year, aggregates data from telecom, broadcasting, and postal service providers regulated by Icasa.
Between 2020 and 2024, the sector achieved a 4% compound annual growth rate (CAGR), attributed to expanded 4G and 5G network rollouts, higher internet penetration, and demand from e-commerce and remote work. Mobile data services alone grew at a 9% CAGR during this period, offsetting an 8% decline in traditional voice revenue. Text and multimedia services also spiked 20%, underscoring consumer preference for data-centric communication.
Regulatory shifts in 2024 included updated call termination rates designed to lower communication costs and the introduction of a draft framework for satellite service licensing. Icasa emphasized unresolved challenges, particularly expanding rural internet access and reducing costs for low-income households.
South Africa’s telecoms expansion aligns with global trends favoring digital infrastructure, yet disparities in access threaten to widen existing inequalities. Urban centers benefit from robust fibre networks and 5G availability, while rural regions—home to nearly one-third of the population—often rely on outdated or absent connectivity.
Icasa’s satellite licensing initiative could address some gaps, mirroring strategies in nations like Brazil and India, where public-private partnerships improved rural access. However, affordability remains a hurdle. Despite price reductions, entry-level data packages consume up to 5% of monthly income for low earners, compared to the UN’s recommended 2% threshold.
The decline in voice revenue also signals a broader industry pivot. Similar patterns in Nigeria and Kenya have pushed telecoms to diversify into fintech and IoT services, suggesting South African operators may need parallel strategies to sustain growth.
While Icasa’s regulatory reforms aim to stimulate competition, analysts stress that long-term solutions require coordinated investment in infrastructure and digital literacy programs. Without these, the sector’s gains risk reinforcing a two-tiered digital economy, leaving millions behind even as revenue milestones are reached.
