South Africa’s mobile operators are accelerating their investment in 5G infrastructure in 2025, riding on improved power stability following the devastating load shedding of 2023. However, even as networks grow rapidly in size and capability, a new challenge has emerged — consumers are not flocking to 5G as expected.
According to data from the country’s top telcos, Vodacom, MTN, and Telkom, the financial breathing space created by a more stable electricity supply has allowed operators to resume capital expenditure on network expansion. Vodacom alone has more than tripled its number of 5G sites, growing from 1,150 in 2023 to 3,063 by March 2025. MTN has recorded over 2.2 million active 5G users, making up just 6% of its total customer base.
Despite this rapid growth in infrastructure, consumer appetite for 5G remains lukewarm. One of the biggest hurdles, according to telcos and analysts, is that 4G speeds are more than sufficient for most mobile activities — including HD streaming, video calls, and gaming.
An April 2025 OpenSignal report showed that the average 4G download speed in South Africa stands at 37.5 Mbps, well above the 15 Mbps threshold needed for 4K video streaming. This has left mobile operators struggling to justify higher pricing or tiered services based on 5G capabilities — a key revenue driver in other markets.
The issue is not just speed but perceived value. Telkom’s Head of Consumer and Small Business, Lunga Siyo, has consistently noted that customers don’t see 5G as transformative enough to warrant a switch, especially when current 4G plans meet all their digital needs. In response, Telkom has largely targeted 5G offerings at enterprises and fixed-wireless broadband users, rather than mobile phone consumers.
Streaming services, the biggest data consumers on mobile, don’t currently offer a major incentive for 5G migration. Most apps are designed to work optimally even on 3G or slow 4G connections, making ultra-fast 5G speeds seem excessive for the average user.
With the consumer segment dragging its feet, operators are turning their focus toward niche markets and enterprise solutions. One of the strongest performers is the fixed-wireless access (FWA) market — offering home internet over 5G networks, especially in areas where fibre infrastructure is lacking.
Fibre penetration in South Africa remains low, with less than 30% of homes having fibre passing their premises. For many renters or people in underserved areas, 5G offers an attractive alternative: quick setup, portability, and decent speeds for an entire household.
“The killer use case for 5G in the consumer segment is fixed-wireless access,” MTN said, noting increased uptake in suburban and peri-urban areas.
The real star of 5G in South Africa is the enterprise market. MTN, Vodacom, and Telkom have all doubled down on private 5G deployments, catering to industries that demand ultra-low latency, secure connections, and high bandwidth — including mining, manufacturing, healthcare, and transport hubs.
These custom networks are being deployed in smart factories, warehouses, and even ports, where companies use them for autonomous vehicles, real-time CCTV surveillance, and IoT device integration. MTN confirmed that some deployments even come with on-site edge computing capabilities, enabling instant data processing for mission-critical tasks.
“5G is no longer just a connectivity product; it’s a platform for industrial transformation,” said Vodacom in a statement. “We’re building mobile private networks tailored to the exact needs of enterprise clients.”
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