ISPA questions government’s ability to lower cost of internet access
In a statement on Monday, the industry body said that although data prices have declined, the broader cost of accessing the internet — including the price of smartphones — remains a significant barrier, particularly for low-income households.
Ispa was critical of the department of communications & digital technologies, which has repeatedly identified reducing the cost to communicate as a priority but has yet to provide a clear plan for making devices and data more affordable.
“There is no substance to the programme or clear position on what needs to be done to make devices and data more affordable,” the association said.
It also questioned whether the department and Icasa have the capacity to implement the changes required.
The criticism comes despite several years of regulatory investigations into the cost of telecommunications services. The Competition Commission launched its data services market inquiry in 2017 and reported its findings in 2019, concluding that mobile data prices disproportionately disadvantaged poorer consumers. The inquiry led to reductions in entry-level data bundles.
Icasa subsequently conducted its own investigations into priority markets and mobile broadband services. In August, the communications department issued a tender for a study into why previous interventions had failed to deliver affordable voice and data services.
In September, Icasa announced a market inquiry into telecommunications affordability. After withdrawing its initial notice, it reissued the notice on 30 September. Findings are not expected before 2027.
Ispa chair Sasha Booth-Beharilal said government should prioritise free basic data for people living below the poverty line.
“Reducing the cost to communicate is key to poverty reduction,” she said, arguing that a free basic data allowance was already recognised in the National Infrastructure Plan and National Radio Frequency Spectrum Policy.
Regulatory uncertainty
Ispa acknowledged progress in consumer protection, including changes to data rollover and out-of-bundle billing rules. However, Icasa’s amended end-user and subscriber service charter regulations are being challenged in the high court by MTN and Vodacom.
The regulations require operators to roll over unused data at least once and prohibit out-of-bundle charges without customer consent. They are scheduled to take effect on 23 January 2027.
Ispa said Icasa had a poor record of defending its regulatory processes in court. It pointed to an earlier attempt to introduce mobile broadband rules aimed at increasing competition, which were subsequently declared unlawful. Icasa has since abandoned that process.
The regulator’s use of its budget has also come under scrutiny. Icasa underspent its 2025/2026 budget by R333.7m and ended the year with a R100.2m surplus, despite telling parliament that funding constraints were preventing it from acquiring the tools needed to monitor operators.
The figures raise questions about whether the regulator’s difficulties stem from insufficient funding, implementation capacity or both.
Legislation delayed
Ispa identified price reductions negotiated through the Competition Commission’s inquiry as among the most effective measures introduced to date. It also cited the removal of the 9% ad valorem excise duty on smartphones costing less than R2,500, which took effect in April 2025.
The Competition Commission recommended amendments to the Electronic Communications Act to strengthen competition. However, the Electronic Communications Amendment Bill was tabled in parliament only in April 2026, almost seven years after the commission’s recommendations.
Ispa expects the bill to remain unfinished until at least the end of 2027, delaying potential changes to the competitive landscape.
Despite the reductions achieved, South Africa remains relatively expensive by regional standards. Consumers paying R100 for 1GB of prepaid data in 2020 were paying about R79 in 2025. Yet the country’s blended average of approximately R20.50/GB remains higher than that of 27 other African countries, according to International Telecommunication Union price categories.
The figures underline the distinction between falling prices and affordable access. For lower-income households, the cost of a device remains an additional obstacle.
Ispa’s criticism points to a persistent weakness in South Africa’s telecommunications policy: a long record of inquiries and proposed reforms has not translated into consistent implementation. Without clearer priorities, effective regulation and faster legislative action, further reductions in data prices may not be enough to close the digital divide.