Telecommunications and Retail Trade of Electronic Devices in South Africa 2025

This report on telecommunications and the retail trade in electronic devices in South Africa outlines key developments, market dynamics, and strategic shifts shaping telephony, internet and wireless internet, and supporting infrastructure. It also covers the retail market for electronic devices such as mobile phones, tablets and routers. It includes information on access, infrastructure, revenue, subscriptions, investment, capacity and volumes. It discusses the state of the industry, including digital transformation, consolidation and pricing, notable players, corporate actions, regulations, and technology and innovation. There are profiles of 62 companies including major players such as Vodacom, MTN and Telkom, internet providers such as Vumatel, Afrihost and Rain, undersea cable providers such as Seacom, and retailers such as Cellucity, Samsung and LG Electronics.

Challenges

Affordability and access. Affordability and market saturation of mobile devices. Competition dynamics pose challenges for newer entrants. Competition from new entrants and alternative service providers, such as mobile virtual network operators. Consumer privacy concerns. Ecommerce challenges such as cybersecurity threats, fraud and logistical issues. Environmental, sociopolitical, and geopolitical risks. Maintaining consistent and high-quality service is an ongoing challenge, including network congestion, downtime and service disruptions. Network security concerns. Regulatory complexity. Spectrum availability and allocation challenges. Supply chain disruptions. Technological obsolescence. The digital divide and a shortage of skilled professionals.

Introduction

• Telecommunications revenue in South Africa rose by more than 11% in 2024.
• This growth is supported by infrastructure investment, broader broadband coverage, and growing demand for internet, data and mobile services.
• The continued expansion of 4G/LTE and 5G networks, and efforts to reduce the cost of data and entry-level smartphones are helping to broaden digital access.
• As low-Earth orbit satellite providers prepare to enter the South African market, new opportunities for collaboration may emerge.

Opportunities

5G network expansion, including infrastructure and services. Affordable smartphones, including pre-owned devices. Collaboration with local content providers and customisation for local preferences. Cybersecurity services. Digital inclusion initiatives and rural connectivity projects. E-waste services. Ecommerce partnerships. Fixed wireless access broadband services. Growing demand for data centres. Mobile financial services and fintech. Satellite services, including low-Earth orbit satellite services.

Outlook

• Steady growth is expected to 2030, supported by expanding network infrastructure, evolving consumer demand, and policy shifts.
• Continued investment in 4G and 5G rollout is expected to improve connectivity in underserved areas.
• In the retail sector, companies are expanding their financing options and investing in digital sales channels.
• Economic challenges and constrained household budgets could limit consumer spending and reduce demand for higher-end services and devices.
• Regulatory uncertainty and delays in licensing and spectrum allocation may dampen investor confidence and disrupt planning.
• MTN is facing reputational and legal risks due to ongoing allegations and investigations.

Trends

Cellular-only communication continues to dominate, with 91.2% of households relying solely on mobile phones. Data-driven services are driving demand, especially high-speed connectivity for streaming, social media, cloud apps, and mobile payments. Demand for affordable smartphones remains strong. Growing demand for fixed wireless access broadband services as an alternative to cable and fibre landline internet services. Mobile broadband and fibre continue to expand, while traditional fixed-line and voice services remain in decline. Network expansion continues to be a priority, with broader deployment of fibre and 4G and 5G services improving connectivity. International access is being strengthened through the development of new undersea cable systems, and there is growing interest in satellite services in underserved areas. The boundaries between telecommunications and technology are increasingly blurring, as telecommunications providers diversify into sectors such as fintech, cloud services, and digital media. The market is consolidating, with larger operators pursuing acquisitions and strategic partnerships.