South Africa”s ICT sector recorded aggregate growth of just 0.8% in 2025, with telecommunications as the sole engine of expansion. Broadcasting revenue declined 4.6% and postal revenue fell 2.3%, as both sectors continue to bear the weight of digital disruption.
The Independent Communications Authority of South Africa (ICASA ) has published the 11th edition of its annual State of the ICT Sector Report, covering the period ending 30 September 2025. The report draws on data from 103 electronic communications licensees, 48 broadcasters, and seven postal operators, alongside inputs from Statistics South Africa , the ITU , and the OOKLA Speedtest Global Index .
South Africa’s ICT sector recorded aggregate growth of just 0.8% in 2025, with telecommunications as the sole engine of expansion. Broadcasting revenue declined 4.6% and postal revenue fell 2.3%, as both sectors continue to bear the weight of digital disruption.
Telecom grows, but the mix is shifting
Telecommunications revenue rose 1.6%, continuing a five-year CAGR of 4.2%. Beneath that headline, however, the revenue structure is changing fast. Mobile services revenue fell 7.9% even as national mobile traffic surged 21.5%, a divergence driven by OTT substitution and intense price competition. Fixed internet and data revenue kept growing, with fibre subscriptions up 19.3%. Fixed line voice revenue, by contrast, declined 11.8%.
Coverage gains, affordability gaps remain
4G/LTE now reaches 99.5% of South Africa’s population. 5G coverage stands at 58.0%, though rural provinces remain significantly underserved. Household internet access from any location rose to 82.1% in 2024, up from 78.6% the previous year.
On affordability, the picture is mixed. The 2GB mobile data basket at R152 sits comfortably below the 2% GNI benchmark. Entry-level fixed broadband at R309, however, remains well above the affordability target, and ICASA identifies wholesale and infrastructure reforms as essential to closing that gap.
Investment and resilience under pressure
Total telecommunications investment declined 2.3% year on year, though fixed network spend grew 11.9% while mobile investment fell 21.0%. Theft-related costs rose 189%, and operators continued to spend heavily on batteries and generators due to power disruptions. Vandalism costs did fall 34%, suggesting some mitigation progress.
Only one in five government facilities connected
Of 21,878 government facilities targeted for connectivity under spectrum licensing obligations, just 4,377, approximately 20%, had been connected as of October 2025. ICASA calls for stronger monitoring and enforcement to close the remaining gap across schools, health facilities, libraries, and traditional authority offices.
Broadcasting and postal services under structural strain
Pay-TV subscribers fell 9.6% to approximately 6.7 million, yet programme expenditure increased 7.6% to roughly R17.2 billion and broadcasting employment grew 13.1%. In the postal sector, registered letter volumes dropped from 152.96 million to 148.04 million, and employment contracted by 21.2% as digital substitution deepened.
The road ahead
ICASA’s key recommendations include launching a formal OTT market inquiry, prioritising rural 4G rollout, reducing fixed broadband costs through infrastructure sharing, protecting assets from theft, and accelerating the connection of public facilities. With total combined sector revenue reaching R273.78 billion, the sector is stable, but the structural pressures are real and the regulatory response needs to keep pace.
