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Demand for high-speed internet fuels SA’s fixed broadband surge


Fixed broadband service revenue will increase at a CAGR of 4.4% during the 2025 to 2030 period.

Fixed broadband service revenue will increase at a CAGR of 4.4% during the 2025 to 2030 period.

Fixed communication services revenue in South Africa is expected to grow at a compound annual growth rate (CAGR) of 4.1% during the 2025 to 2030 period.

This is according to GlobalData’s South Africa Fixed Communications Forecast (Q3 2025) which reveals that broadband, led by fibre-optic (FTTH/B) and accelerating rollouts, will be the primary growth engine of fixed communication services, while (FWA) offers an important complementary route in underserved areas.

Fixed voice service revenue will grow at a CAGR of 2.8% over the forecast period, supported by the continued growth in Voice Over Internet Protocol (VOIP) subscriptions.

This growth will be driven by the expansion of fixed broadband networks across the country, enabling high-quality VOIP services for both residential and business customers, it says.

Fixed broadband service revenue, on the other hand, will increase at a reasonably faster CAGR of 4.4% during the review period, supported by the growth in fibre-optic (FTTH/B) and fixed wireless access subscriptions, notes the report.

Neha Mishra, telecoms analyst at GlobalData, comments: “Fibre lines accounted for about 65.3% of total fixed broadband lines in 2024 and will remain the leading broadband technology through to 2029.

“This growth will be driven by the rising demand for high-speed broadband connectivity, and government and operators’ focus on expanding fibre network coverage and promoting the adoption of FTTH/B services across the country.”

For instance, in July 2025, government allocated R710 million to the SA Connect programme to accelerate fibre broadband infrastructure across schools, clinics and underserved communities, supporting nationwide digital inclusion, the report notes.

Additional factors contributing to the growth of fixed communication services revenue include strong demand for high-speed, reliable home connectivity and businesses investing more in high-capacity fixed connectivity to support cloud migration, cyber security tools, data-intensive operations and internet of things deployments.

“Growth in remote and hybrid work, online learning, streaming and cloud-based entertainment is sustaining long-term household demand for uncapped, low-latency fibre connections,” it says.

While fixed voice continues to shrink, the rate of decline is moderating as operators shift users to VOIP solutions bundled with fibre − helping stabilise the fixed-line segment as a whole.

According to the report, FWA lines will also grow at a five-year CAGR of 9.1%, supported by the growing demand for high-speed internet services in areas with limited fibre coverage and the emergence of FWA as an alternative for wired broadband connections in such areas.

Mishra adds: “Telkom led the fixed broadband services market in 2025 and is expected to maintain its leadership through 2030, given the company’s substantial investments in broadband infrastructure. During FY2025, Telkom allocated approximately 27% of its total capital expenditure to fibre deployment, accelerating its transition from legacy copper to next-generation broadband.”



Edited for Kayitsi.com

Kayitsi.com
Author: Kayitsi.com

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