South Africa's telecommunications sector is grappling with a significant surge in theft and operational costs, posing substantial challenges for service providers. In 2025, telecoms theft escalated by a staggering 189%, reaching $12 million (R201.5 million), a sharp increase from $4.13 million (R69.6 million) in 2024. This dramatic rise, detailed in the Independent Communications Authority of South Africa’s (ICASA) latest State of the ICT Sector report, positions theft as the primary cost driver for SA telcos in 2025. The report attributes this surge to increased cable theft, a thriving equipment resale market, and vulnerabilities in existing infrastructure protection.

Beyond the direct costs of theft, telcos have also incurred substantial additional expenses related to backup power equipment. Data from ICASA indicates that sector-oriented battery costs soared by 171.8%, from $10.3 million (R173.8 million) in 2024 to $23 million (R387.7 million) in 2025, with the number of batteries acquired nearly doubling from 44,708 to 84,829. Similarly, spending on generators increased to $28 million (R426.8 million) from $12.6 million (R211.5 million), and the number of generators purchased grew from 855 to 1,969 in the same period. These costs are further compounded by increased expenditure on diesel fuel required to power infrastructure and facilities during frequent power outages. ICASA's findings are based on a comprehensive methodology that includes Statistics South Africa’s General Household Survey 2024, International Telecommunication Union reports for 2024 and 2025, an Ookla report, and a questionnaire collecting data from telcos up to September 2025.

The spike in daily operational expenditures has sparked a critical debate regarding capital spending. Nomvuyiso Batyi, CEO of the Association of Comms & Technology (ACT), highlighted in a TechCentral report that power outages, infrastructure theft, and vandalism are forcing telecom operators to exceed their budgets, thereby creating a tough macroeconomic environment. She emphasized that operators are redirecting funds initially earmarked for infrastructural upgrades towards repairing existing infrastructure and investing in power generation. This shift makes it exceedingly difficult for operators to meet ICASA’s mandated minimum 90% uptime for voice call services and other quality of service recommendations.

The challenging market conditions are already impacting consumers. In March, Telkom announced an 8% increase in its voice and data plans, effective April 1, citing rising operating costs and broader macroeconomic factors as the justification for maintaining quality service. While essential for its financial health, this adjustment reflects the unfavourable economic climate in South Africa. MTN South Africa has also faced a tough period, experiencing only 2% growth in service revenue in 2025, which led to it losing its position as the top revenue-yielding market within the MTN group to MTN Nigeria. This decline was partly attributed to increased competition in its prepaid business, alongside the overarching operational difficulties.