While the telecommunications sector continues to demonstrate dynamic economic growth, it has not been shielded from the employment slump witnessed across South Africa.
Insights from the “State of the ICT sector in South Africa – 2025 report” show the telecoms sector recorded revenue growth of R232 billion in 2024, compared to R208 billion in 2023.
Released annually by the Independent Communications Authority of South Africa (ICASA), the report looks at telecommunications, broadcasting and postal services. It presents key insights on various factors, including financial performance, employment trends and subscription statistics.
According to the regulator, the findings are based on data collected over a 12-month period ending on 30 September of each year, as well as information collected by Statistics SA, including ICT information from the General Household Survey report.
The latest instalment reflects that the telecoms sector’s revenue increased by 11.7%, largely influenced by a 10.21% increase in mobile services revenue, reveals the report.
“This surge is attributed to the rapid adoption of mobile technologies, increased internet penetration, and the rollout of 4G and 5G networks to support digital services. Additionally, the growth in e-commerce and remote working enhanced the demand for broadband services.”
The combined revenue for telecoms, broadcasting and postal services increased by 9.01% in 2024, largely driven by telecoms revenue, with total revenue of R271 billion, for the period under review.
“Broadcasting revenue saw a marginal decline of 1.79%, reflecting the shift towards digital streaming platforms and declining traditional media viewership. The postal sector experienced the sharpest decrease, plummeting by 22.4%, as electronic communication and courier services are increasingly replacing traditional mail.”
On the employment front, the ICASA report indicates all three sectors experienced a decline.
South Africa’s employment rate has struggled to rebound following the COVID-19 pandemic. Stats SA’s latest employment data shows the country’s official unemployment rate at 31.9% in the fourth quarter of 2024.
ICASA reveals combined employment for telecoms, broadcasting and postal services was down 12.38% in 2024, which it says is indicative of the varying industry challenges and economic influences.
The total employment in the telecoms sector experienced a slight decline of 0.86%.
Postal services employment decreased dramatically by 37.46%, driven by declining mail volumes and the rise of digital communication alternatives. Broadcasting employment experienced a 4.34% decrease, influenced by technological advancements and market shifts.
“Over the five-year period from 2020 to 2024, total employment in telecommunications fell by 2.84%. Male employment saw a decline of 3.23%, whereas female employment experienced a smaller decrease of 2.18%.”
5G on the rise
Amid accelerated 5G rollout, the report notes that overall 5G coverage is currently at 46.64%.
Urban centres in the Western Cape have seen progress, achieving a robust 78% 5G coverage, it reveals.
South African mobile network operators have been steadily ramping up 5G network deployment.
In September 2019, mobile network operator Rain became the first telco to activate a commercial 5G network in Africa. Vodacom and MTN switched on their 5G networks in 2020, while Telkom launched in 2022. In February, SA’s fourth-biggest mobile operator Cell C announced it is looking to deploy 5G connectivity in the “next couple of months”.
National 3G coverage reached 99.79%, with 4G/LTE coverage at 99.07%, states the ICASA report.
Geographical broadband access coverage significantly expanded to include 82.06% of the country's landmass, marking a substantial improvement in connectivity. However, there are still several remote and underserved areas where internet access is unavailable, says ICASA.
“This gap highlights the ongoing need for investment and development to ensure every citizen can participate in the digital economy. Bridging these gaps is essential to maximise the benefits of technological advancement and ensure no community is left behind in this digital transformation.
“The spectrum auctioned in March 2022 is expected to play a crucial role in helping network operators expand their coverage to underserved rural and remote areas, bridging the digital divide and fostering greater social and economic inclusion.”
Social media value-add
The report shows revenue generated by telecoms operators through social media platforms emerged as a significant driver of digital engagement.
The total revenue generated from customers using telco services to access social media reached R159.3 billion last year, with major players such as Facebook, WhatsApp and TikTok leading the charge.
“Facebook accounted for R58.9 billion, followed closely by WhatsApp at R49.2 billion and TikTok at R38.9 billion.
“This substantial revenue growth highlights the strategic importance of social media as a vital channel for communication, advertising and customer interaction, further reinforcing its role in the overall telecoms landscape in SA.”
There was also asurge in fibre subscriptions and advancements in network coverage, reveals the report.
“The sector's transformation was primarily driven by fibre-based solutions, which became a pivotal area of expansion. Fixed broadband subscriptions skyrocketed, from 1.4 million in 2023, to an impressive 2.7 million by the end of 2024.
“Notably, fibre-to-the-home and fibre-to-the-building subscriptions witnessed a phenomenal increase, jumping from 1 million to 2.4 million. This surge contributed a staggering R6.5 billion in revenue, underscoring the growing reliance on high-speed internet connectivity.”
Despite all the ICT gains, the report notes the country still struggles with lower broadband quality compared to other countries, highlighting the need for further improvements to match leading global markets.
The report shows a 7.46% increase in mobile cellular subscriptions during 2024, bringing the total to 116.8 million. Concurrently, smartphone subscriptions experienced a significant surge, rising by 10.36% to reach 82.7 million.
Fixed broadband subscriptions displayed progress, from 1.4 million to 2.7 million, driven primarily by the rapid adoption of fibre-optic solutions.
“Over the period from 2020 to 2024, the national active mobile subscriptions also demonstrated strong growth, achieving a compound annual growth rate of 10.05%. Additionally, the capacity for international internet bandwidth expanded by 10.1%.
“As of 2025, fixed broadband speeds average 48.51Mbps, placing the country at a global ranking of 52nd. Mobile broadband speeds in SA average 49.81Mbps, placing the country 61st in global rankings. These figures highlight the ongoing need for improvements to reach the standards of leading global markets.”
* All graphs sourced from ICASA's “State of the ICT sector in South Africa – 2025 report”.
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