South Africa Telecom Market Size (2024 - 2029)

Telecommunications in South Africa Market Analysis

The South Africa Telecom Market size is estimated at USD 10.21 billion in 2024, and is expected to reach USD 12.02 billion by 2029, at a CAGR of 3.33% during the forecast period (2024-2029).

The need for telecommunications services in South Africa has increased significantly during the last five years. Due to emerging technology (including artificial intelligence and the internet of things) and the COVID-19 pandemic, data requirements have recently increased particularly swiftly.

• Recently, the country's emphasis has been on fiber and LTE networks and backup capacity to increase and improve internet service connectivity. Telkom, the dominant telecom operator, anticipates shutting down its copper network in 2024 due to the ongoing transition to fiber. Notably, owing to the limited availability and poor quality of fixed-line networks, which left many people with no choice but to use mobile networks for voice and data services, the mobile industry has experienced rapid growth in recent years.
• The South African telecom market is expected to grow on the back of LTE/LTE-A and 5G connectivity. This is especially true now that the government has announced that it will shut down 2G and 3G networks over the next three years. The long-delayed spectrum auction finally happened in March this year, and the regulator ICASA received over ZAR14.4 billion (USD 970.0 million) due to the sales. Meanwhile, several roaming agreements in the market would further support development in the cellular sector, and the operators would use the extra airwaves to increase the size and extent of their coverage.
• In South Africa, digital transformation has significantly increased in the last couple of years. The country has recently made significant efforts in this area and has been actively trying to improve 5G legislation and regulations to assist in helping the country remain prepared for the digital age. One recent instance is the launch of a three-stage 5G spectrum auction by the Independent Communications Authority of South Africa (ICASA) at the beginning of this year. Undoubtedly, South Africa's efforts to expedite spectrum auctions and new spectrum allocations would maximize the economic benefits of cellular technology in the country.
• Fixed telecom connections in South Africa are steadily switching from copper to fiber. Due to this, the company's DSL broadband user base has drastically decreased in recent years. The necessity for better digital services and the strains placed on broadband infrastructure during the pandemic prompted the government, late last year, to develop plans for the rollout of broadband services by the end of next year across the country. This would be an upgrade to current projects that called for achieving countrywide coverage by 2030.
• The pandemic's substantial effects on global manufacturing and supply chains are being overlooked by the market, which also experienced a pause in some network expansions, notably those related to 5G. During this critical time, the country initially faced macroeconomic disruptions that constrained the spending on telecom services and equipment. However, telecom services are essential for both everyday communication and as a tool for remote work. The overall result was consistent, and there was an increase in subscriber growth in many areas. South Africa witnessed high demand for mobile data, nullifying the industry's primary disruption.

Telecommunications in South Africa Industry Segmentation

Telecom or Telecommunication is the long-range transmission of information by electromagnetic means.
South Africa Telecom Market includes in-depth trend analysis based on connectivity like Fixed Networks, Mobile Networks, and Telecom Towers. The telecom services are divided into Voice Services (Wired and Wireless), Data and Messaging Services, and OTT and PayTV Services. Several factors, including an increasing demand for 5G, likely drive the adoption of telecom services.

The market sizes and forecasts regarding value (USD million) for all the above segments are provided.