South Africans are getting a double whammy from large government corporations. First, Eskom, the state-owned power company, is increasing tariffs again on April 1, 2025. Likewise, Telkom, the majority government-owned telecom operator, will also increase tariffs for its mobile subscribers by—you guessed it—April 1, 2025.
Telkom will hike tariffs for its telephone and mobile internet services for both businesses and consumers by 12%. Customers will also see a 6% tariff increase for fibre services and voice plans. Telkom cited “increasing operational costs and external economic pressures” as a major problem. South Africa’s inflation has quickened by 40 basis points since October 2024 but remains within the Central Bank’s expectation.
The telecom tariff hike, coupled with the electricity tariff increase, will add more pressure to the pockets of 24 million subscribers who use Telkom.
South Africans are no strangers to tariff increases from Telkom. It has raised prices several times in the past, often in response to economic conditions. Other telecom providers, including MTN and Vodacom, have also made adjustments in previous years, and it remains to be seen whether they will follow Telkom’s lead this time. Given the economic climate, they might feel forced to—even if it risks customer dissatisfaction.
For consumers, the new prices mean higher bills. A 50Mbps (megabytes per second) fibre plan that currently costs R629 ($35) will rise to R665 ($37), while a 100Mbps package will go from R909 ($50) to R965 ($53). These hikes will add up for businesses and households already struggling with rising costs.
While Eskom’s price increases have pushed more South Africans toward solar energy, there is little alternative to Telkom’s services. However, competitors might see this as an opportunity to attract cost-conscious customers by stabilising their prices.
There is an opportunity for internet service providers like Afrihost, Herotel, and MWEB—known for its affordability—to crash Telkom’s party. But how low can they go?
