With a network that is 99.9% digital and includes the latest in fixed-line, wireless and satellite communication, South Africa holds the most developed telecoms network in Africa. South Africa’s fixed-line monopoly is Telkom, a listed company in which the government is the largest shareholder. However, Telkom’s monopoly ended with the licensing of Neotel as South Africa's second national operator. Neotel is licensed to provide the complete range of telecoms services with the exception of full mobility.
South Africa has the fourth-fastest growing mobile communications market in the world. There are three cellular network operators in the country, Vodacom, MTN and Cell C, and they provide communication services to over 40-million subscribers or nearly 80% of the population. At 87%, the country has the largest mobile penetration rate in Africa. The introduction of number portability as well as the arrival in 2006 of Virgin Mobile, a virtual network service provider that operates in partnership with Cell C, has assisted in increasing competition. South African mobile companies are branching out into Africa and the Middle East, with MTN leading with over 20 operations in these emerging markets. Some of the world's leading telecommunication brands - including Siemens, Alcatel, SBC Communications, Telecom Malaysia and Vodafone - have made significant investments in the local industry of the country.
A larger access to broadband, ADSL and 3G accesses have enhanced internet connectivity, with the number of South African internet browsers increasing by 121% in two years, from 1.8-million in May 2005 to 5.1-million in 2006, according to research from Internet world stats. Bandwidth, however, is still relatively limited and expensive in South Africa, impeding the rate of economic growth in this sector. However, the government has planned to increase accessibility and reduce costs. With this in mind, the laws have been approved in 2008, to make way for the formation of Infraco, a new state-owned company that will provide broadband capacity through fibre-optic cables to other telecoms operators in the country. Infraco's role will harmonize that of state-owned signals provider Sentech, which provides internet connectivity, will put focus on the public sector through wireless systems rather than fibre-optic cables. .
In September 2007, MTN planned to partner with other operators to construct a 5 000-kilometre fibre-optic network across the South Africa's major centres to meet the rising demand for bandwidth from its customers. Two undersea telecoms cables that will help bring down connectivity costs in eastern and southern Africa are also being put in place. The East Africa Submarine System (EASSy), a 9 900km fibre-optic cable running along Africa's east coast from Port Sudan to Durban, is due to be completed by early 2009.
The government plans to licence a fourth mobile operator and a third fixed line operator in 2009.
