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Social media usage has been identified as one of the main drivers behind the strong growth in broadband connectivity last year, with both mobile and fibre connections contributing to the expansion.
This is according to communications regulator Icasa’s “The State of the ICT Sector of South Africa” report, published earlier this week.
“In 2024, the telecoms sector in South Africa experienced remarkable growth. This growth was primarily propelled by a substantial 10% surge in mobile services, reflecting a strong demand for connectivity and the expansion of mobile network offerings,” Icasa said in the report.
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“Additionally, fixed internet and data services saw a remarkable increase of 15%, highlighting a significant shift towards more robust and high-speed internet solutions among consumers and businesses,” it said.
Now in its 10th iteration, Icasa makes use of questionnaires as a primary data collection tool in compiling the report. The telecoms, broadcasting and postal services sectors – all of which are regulated by Icasa – submit information on key data points annually. Questionnaires cover data over a 12-month period ending on 30 September of each year.
“Revenue generated by telecoms operators through social media platforms emerged as a significant driver of digital engagement [last year]. This substantial revenue growth highlights the strategic importance of social media as a vital channel for communication, advertising and customer interaction,” Icasa said.
Between 2020 and 2024, the telecoms sector enjoyed a compound annual growth rate (CAGR) of 4%. Icasa attributed this to the “rapid adoption of mobile technologies, increased internet penetration, and the roll-out of 4G and 5G networks to support digital services”. E-commerce and remote working were also identified as demand-side drivers for broadband connectivity.
As data consumption grew, traditional voice revenues for mobile operators continued to decline, slowing by nearly 8%, while revenue from text and multimedia services surged 20% year on year. “The substantial growth in mobile data services reflected a higher demand for mobile internet, while the decline in voice services and roaming revenue indicated a shift in consumer preference towards data-based services,” Icasa said.
At 6%, the CAGR of mobile services between 2020 and 2024 outpaced the 4% average for the sector. Revenue for mobile data services increased by a CAGR of 9% in the same period.
Icasa noted in the report that it made two major regulatory changes affecting the telecoms industry in 2024. The first was the publication of new call termination rates, which, according to Icasa, were aimed at lowering the cost to communicate. The second was the inception of the process to develop a new licensing framework for satellite services, which is ongoing.
Icasa also noted several challenges that continue to impact the sector, including the need to expand coverage to reach those who have no form of internet connectivity and the need to drive the cost of connectivity down further so the poorest South Africans can afford access.
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