
In South Africa, mobile operators are grappling with the challenges of monetising their 5G networks as 4G connections continue to meet most consumers’ needs. Despite increased investment following the establishment of a more stable power grid in 2023, operators are struggling to recoup the costs associated with deploying 5G infrastructure. Many users find that 4G/LTE speeds are adequate for daily activities, such as high-definition streaming and gaming, leaving operators with limited ability to charge a premium for 5G services.
Vodacom recently reported a significant expansion of its 5G network, doubling the number of sites from 1,150 in 2023 to 2,299 in 2024. By March 2025, this number reached 3,063. However, while Vodacom has not disclosed its 5G subscription numbers, MTN has reported over 2.2 million active 5G users, representing only 6% of its customer base. Telkom noted that 14% of its mobile devices are 5G-capable but did not specify the number actively connected.
The primary concern for operators is that potential 5G users aren’t willing to pay more when 4G speeds can handle most of their needs, and this has led companies like Telkom to initially focus their 5G offerings on enterprise customers rather than consumers. Nevertheless, mobile operators are identifying niche markets for 5G, such as fixed-wireless home internet and enterprise applications, where higher connectivity charges can be justified.
5G is increasingly seen as an alternative to fibre for home users, especially in areas where fibre is not widely available. Small and medium-sized businesses also benefit from the enhanced speeds and reliability of 5G. As newer applications, such as augmented reality and smart home technologies, emerge, consumer demand for 5G is expected to increase. In the enterprise sector, private 5G networks are poised to support IoT solutions in various industries, presenting further opportunities for operators to demonstrate the value of their 5G investments.