South Africa Targets 60% Reduction in Data Costs by 2029

South Africa’s mobile data prices have declined by 35% to 40% since 2025, driven by ongoing regulatory monitoring and government affordability initiatives, according to Minister of Communications and Digital Technologies Solly Malatsi. Responding to a parliamentary inquiry from National Assembly member Wiseman Ngobese, Malatsi outlined department targets aimed at achieving a 60% reduction in data costs under the Medium-Term Development Plan spanning 2025 through 2029.

Government Studies Pricing to Reduce Communication Costs

The Department of Communications and Digital Technologies has established a formal Cost to Communicate Programme of Action to identify policy interventions addressing mobile data, fixed data, voice services, and smart devices. While the 2026/27 Annual Performance Plan does not impose a separate annual percentage reduction target, it tasks the Digital Society and Economy program with finalizing a comprehensive market analysis study. Minister Solly Malatsi stated that the forthcoming study will evaluate pricing structures, market competition, underlying cost drivers, and consumer affordability to guide future regulatory measures. This framework supports broader state objectives to expand meaningful digital access across the telecommunications sector.

Government Sets Connectivity Targets for Households and Public Facilities

Complementing price reductions, the government’s Medium-Term Development Plan sets explicit infrastructure benchmarks targeting 60% of households connected via fiber and over 50% utilizing fixed connectivity by 2029. Implementation targets within the 2026/27 Annual Performance Plan focus heavily on underserved regions. Specifically, the department aims to connect 2,000 public facilities—including schools, clinics, hospitals, traditional offices, and libraries—under universal service obligations. Authorities plan to verify 1,143 connected public Wi-Fi sites, representing 20% of the 5,714 total operational sites deployed through SA Connect initiatives.

Telecom Regulator Withdraws Over-The-Top Market Inquiry

In a parallel regulatory development, the Independent Communications Authority of South Africa officially withdrew its notice of intent to launch a market inquiry into over-the-top services such as Netflix and WhatsApp. Published originally in early September 2026, the inquiry sought to investigate the impact of high-traffic streaming and messaging platforms on traditional network licensees. The Association of Communications and Technology, which represents major local operators including Vodacom, MTN, Telkom, Cell C, Rain, and Liquid Intelligent Technologies, had pushed for these services to contribute to underlying infrastructure costs. Nomvuyiso Batyi, CEO of the Association of Communications and Technology, previously emphasized that data-heavy platforms place significant financial pressure on network operators who continuously upgrade infrastructure without direct financial contributions from beneficiary applications. With the withdrawal effective as of September 30, 2026, the regulator stepped back from plans that would have required platforms like Netflix and WhatsApp to help fund traditional telecommunications networks.

Data prices previously stood at higher baseline levels before dropping 35% to 40% in the period following 2025.