Johannesburg – South Africa is targeting a 60% reduction in data costs by 2029 as government steps up efforts to make mobile and fixed internet services more affordable.
Communications and Digital Technologies Minister Solly Malatsi said the target forms part of the government’s 2025–2029 Medium-Term Development Plan (MTDP), with data prices already estimated to have fallen by between 35% and 40% since 2025.
According to MyBroadband, Malatsi said affordability remains a priority as the government seeks to expand meaningful digital connectivity.
“The Department has prioritised the affordability of data and digital communications as part of the government’s goal of ensuring affordable and meaningful connectivity,” he said.
However, the department’s 2026/27 annual performance plan does not include a specific percentage reduction target for the current financial year.
Market analysis
Instead, government plans to conduct a market analysis examining pricing, competition, cost drivers and affordability in the communications sector.
The department has also launched a six-month study into the cost of mobile data, voice services and devices. MyBroadband reported that the tender, issued in August, seeks to identify the causes of high communication costs and recommend policy interventions.
The department said that despite previous interventions, “the cost of data remains high to this very day”, limiting participation in the digital economy.
ICASA has separately launched an affordability market inquiry to investigate the cost of telecommunications services and possible regulatory or market interventions.
The regulator said affordability remains a concern particularly for low-income households, rural communities, young people and informal-sector workers.
Consumer protection
ICASA’s latest ICT sector report, as reported by ITWeb, found that mobile data prices have eased, but affordability remains a barrier to digital inclusion and economic participation.
The government is also pursuing greater competition through proposed changes to the electronic communications framework. Proposed amendments include a “use it or share it” approach to spectrum, mandatory spectrum sharing and support for mobile virtual network operators.
Consumer protection is another part of the strategy. Amendments to the End-User and Subscriber Service Charter regulations provide for data rollover and transfer, as well as protection against out-of-bundle charges without consumers’ consent. Implementation and enforcement are expected to begin in January 2027.
The changes come as South Africa continues to debate the affordability of mobile services. SABC News reported that MTN and Vodacom are challenging aspects of ICASA’s new regulations concerning unused data and out-of-bundle charges.
Government’s stated objective is to make communication services “fair, transparent and in line with the objectives of universal access”, while improving access to smartphones and connectivity for people who rely on digital services for education, employment, banking and government services.
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Compiled by Betha Madhomu
