South Africans catch a break with reduced data costs

Nomvuyiso Batyi|Published 10 hours ago

South Africans are no strangers to the rising cost of living. Grocery prices continue to rise, fuel costs swing unpredictably, and households are stretched thin trying to make ends meet. Yet, amid this financial strain, one essential service has provided rare relief: internet access.

The Competition Commission’s August 2025 Cost of Living Report highlights something perhaps worth celebrating. The communications sector has made real progress in driving affordability and accessibility of internet services. It’s a reminder that the tides are slowly turning and that even in tough economic times, targeted interventions can help ease pressure on households. The internet is no longer a luxury, it is an essential service, as important as electricity or water.
This recognition reflects the lived reality of millions of South Africans for whom being offline means being left behind. Whether its job seekers completing applications online, learners relying on digital platforms for school work, or families using WhatsApp and video calls to stay connected across provinces, connectivity is part of daily survival.

Not long ago, mobile date costs were a national pain point. In 2017/2018, the cost of a 1GB data bundle stood at R149 with Vodacom, MTN, and Cell C, while Telkom Mobile charged R99. These prices were crippling for many, especially low-income families. A number of factors such as competitive forces, the Icasa consumer rules in 2018, Competition Commission’s Data Services Market Inquiry in 2019 and the temporary spectrum issued during Covid-19 changed that trajectory.

The telecommunications sector, in collaboration with regulators like Icasa and the Competition Commission, continues to address long-standing consumer issues. The expiry of data bundles, for example, has been a significant point of concern. While strides have been made to allow for data rollover and transfer, the industry understands the balancing act between continued investment and the public’s desire for greater transparency and fair treatment.The ongoing dialogue between regulators and the industry aims to find a sustainable solution that aligns with consumer expectations. This collaborative approach is vital to ensuring that connectivity remains both affordable and equitable.

Digital inclusion as economic inclusion

Affordable internet is about growth. As the Competition Commission’s 2019 Market Inquiry report highlights, connectivity is a driver of digital inclusion, which in turn supports economic activity. The communications sector, by bringing down barriers to entry, is not only contributing to a more inclusive economy. It is making it possible for South Africans to consume digital content to create, innovate, and compete on a global stage.There are, however, still some challenges that remain.

By 2020, the price of a 1GB bundle had dropped by more than a third. This price drop opened the door for millions of South Africans to join the digital boom at a sustainable cost, marking a crucial step toward digital inclusion.While these reductions were significant, they still left South Africa with higher data costs compared to some countries. Nonetheless, the quality of mobile networks in South Africa is generally superior to that found in most other African countries.

According to Opensignal’s Africa report published in November 2024, South Africa sets the benchmark with average mobile download speeds of approximately 34.5Mbps, about 50% faster than the market in second place, and more than double the speeds recorded in at least 20 out of the 27 African markets assessed.

Lower data costs, greater access

Recently, the Commission reports that prices have remained stable, with wireless internet costs increasing by just 1% between January 2022 and April 2025. This is remarkably modest compared to headline inflation. At a time when South Africans are feeling squeezed, whether it’s by not being able to afford to buy a house or school fees rising faster than inflation, stable internet costs can be regarded as a relief. However, the journey to full digital inclusion is not without its hurdles.

The divide is even bigger in rural areas, where many communities remain dependent on mobile data, often at higher relative costs and with less stability. Addressing these disparities will require sustained collaboration between regulators, operators, and the government. Operators incur significant losses restoring vandalised sites and replacing stolen batteries/cables, whilst they also had to invest heavily in backup power to keep sites on-air.

Despite these challenges, the communications sector offers a rare success story,demonstrating that South Africa can bend the curve when it comes to affordability, and that the internet, once a symbol of exclusion is becoming a tool for inclusion. As the Competition Commission’s report makes clear, digital access is no longer optional. It is central to how we work, learn, and live. And while South Africans continue to battle the high cost of living on many fronts, affordable and stable internet costs are a reminder that progress is possible, and worth fighting for.

Nomvuyiso Batyi is former director-general in the department of communications and now CEO of the Association of Comms and Technology (ACT).

*** The views expressed here do not necessarily represent those of Independent Media or IOL.

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