South Africa’s push to connect public institutions is lagging far behind targets, with only about a fifth of identified government facilities linked to broadband networks.
This is according to the Independent Communications Authority of South Africa (ICASA) in its latest State of the ICT Sector Report.
The report draws on multiple data sources, including Statistics SA, the International Telecommunication Union, data collected through the State of the ICT Questionnaire distributed to licensees covering the period from 1 October 2024 to 30 September 2025, and the Ookla Speedtest Global Index 2026 Report.
The authority received a total of 103 responses from electronic communications service and electronic communications network service licensees, 48 responses from television and radio broadcasters, and only seven responses from postal sector operators, with all major operators participating in the questionnaire.
According to ICASA, just 4 377 of 21 878 schools, clinics, libraries and traditional authority sites earmarked under spectrum licensing obligations had been connected by October 2025 − roughly 20%.
The regulator warns that accelerating the programme is critical to expanding access to essential services and closing the digital divide, calling for stronger monitoring, enforcement and incentives to address the remaining 80% gap.
The slow pace of universal access comes despite near-ubiquitous mobile network reach, the report shows.
Population coverage stood at 99.5% for 4G/LTE and 58% for 5G in 2025, although rural 5G availability remains limited, particularly in sparsely populated provinces, ICASA notes.
While 82.1% of households had some form of internet access in 2024, fixed at-home connectivity remains low and uneven across provinces, with the Western Cape leading adoption.
Reshaping industry
ICASA’s report shows the broader ICT sector is undergoing a structural shift, driven by over-the-top (OTT) platforms that are reshaping demand, pricing and competition across telecommunications, broadcasting and postal services.
This, as messaging and calling apps continue to erode traditional voice and SMS revenues, even as they drive demand for mobile and fixed data.
At the same time, streaming platforms and digital advertising are fragmenting television audiences and diverting revenue away from linear broadcasting, while e-commerce growth is boosting parcel volumes but accelerating the decline of traditional postal services, says the regulator.
Against this backdrop, the sector recorded modest growth of 0.8% in 2025, supported entirely by telecommunications.
Telecoms revenue rose 1.6%, offsetting declines of 4.6% in broadcasting and 2.3% in postal services. Over a five-year period, the sector posted a compound annual growth rate of 3%, masking widening divergence between data-driven telecoms growth and structurally pressured legacy segments.
According to the report, affordability trends remain mixed, as mobile broadband is relatively accessible, with a 2GB data basket priced at R152 – below the 2% of gross national income benchmark.
However, entry-level fixed broadband costs R309, well above affordability targets. While South Africa compares favourably with many Southern African countries on mobile pricing, the report reveals it lags behind leaders such as Seychelles and Mauritius, and ranks among the least affordable in BRICS markets for fixed broadband, underscoring the need for wholesale reforms and infrastructure sharing.
Investment patterns also point to a shifting industry, the report reveals. Total telecommunications investment declined 2.3% year-on-year, as operators redirected spending toward fixed infrastructure, which grew 11.9%, while mobile investment fell 21%.
At the same time, operators are facing rising costs linked to crime and energy insecurity. Theft-related expenses surged 189%, and continued spending on batteries and generators reflects the financial burden of maintaining network resilience during power disruptions, even as vandalism incidents declined 34%.
Mobile traffic rose sharply in 2025, with call minutes increasing 21.5%, despite a 7.9% drop in mobile service revenues – a sign of intensifying price competition and OTT substitution.
The number of SIM cards grew marginally by 0.4%, but active subscriptions declined by 2.8%, suggesting a maturing market with uneven usage patterns.
Meanwhile, fixed broadband – particularly fibre – expanded by 19.3%, reinforcing the long-term shift toward data-centric connectivity.
Jobs deficit
Employment across the ICT ecosystem fell 5.2% overall, driven by a steep 21.2% drop in postal jobs and a 2.3% decline in telecommunications, says ICASA.
Broadcasting was the exception, with employment rising 13.1% amid increased content production and digital operations.
It adds that transformation outcomes were uneven – telecommunications saw declines in black and female representation at top management level, while broadcasting improved and postal executive representation remained unchanged.
Within broadcasting, financial pressures persist despite rising investment in content, the regulator notes.
Industry revenue fell 4.6% year-on-year, while programme spending increased 7.6% to about R17.2 billion.
Pay-TV subscriptions dropped 9.6% to roughly 6.7 million, although local content investment remained significant, with independent production spend reaching about R1.2 billion and B-BBEE-recognised procurement at 68.8%.
ICASA points out that the postal sector continues to contract under digital substitution. Registered mail volumes declined from 152.96 million items in 2024 to 148.04 million in 2025, while international mail volumes edged up only slightly, indicating stable but limited cross-border activity.
The regulator says the trends highlight the need for a modernised, technology-neutral regulatory framework that can balance competition, investment and consumer protection in a rapidly evolving market.
Key interventions flagged in the report include reducing fixed broadband costs through wholesale reforms, launching a market inquiry into OTT services, expanding rural coverage through targeted incentives, strengthening infrastructure protection and accelerating connectivity to public facilities.
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