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In 2025, Africa’s telecommunications sector reached a pivotal moment. While cellular towers and base stations now cover vast swaths of the continent, a significant portion of the population remains offline due to prohibitive costs. Mobile network providers grappled with conflicting pressures-raising prices to sustain profitability amid fierce tariff wars, even as they offered discounts to retain customers. Meanwhile, fiber-optic infrastructure extended rapidly along coastlines and into urban centers, and 5G networks began illuminating city skylines. Yet, for many Africans, the expense of compatible devices remained a formidable barrier to connectivity.
This year was marked by stark contrasts. Africa’s digital infrastructure expanded at an unprecedented pace, but the benefits were unevenly distributed. The divide between network availability and affordability widened, and the gap between physical infrastructure and meaningful internet access became glaringly apparent. By 2025, these tensions forced telecom operators, regulators, and investors to confront difficult decisions regarding pricing strategies, network expansion, and the true meaning of sustainable growth.
Connectivity vs. Affordability: The Persistent Divide
By the end of 2024, mobile network coverage in Africa had reached approximately 88.4% of the population, according to the International Telecommunication Union (ITU). This theoretically meant that nearly everyone was within range of a mobile signal. However, actual mobile internet usage lagged significantly behind, with only about 416 million Africans-roughly 28% of the population-actively using mobile internet services as of September 2025, based on GSMA data. Overall internet penetration, including fixed broadband, remained between 36% and 38%, the lowest globally.
The core challenge lies in the disparity between coverage and actual usage. Although over 80% of Africans live within reach of 3G or higher networks, many remain disconnected due to the high cost of devices, limited digital skills, and low household incomes. Consequently, infrastructure is no longer the main obstacle; instead, demand-side factors dominate the connectivity landscape.
Economic Significance Amidst Slower Growth
Despite these hurdles, telecommunications continued to be a vital economic driver. In 2024, mobile services contributed an estimated $220 billion to Africa’s GDP, representing about 7.7% of the continent’s economic output. Unique mobile subscribers numbered around 710 million, nearly 47% of the population. While growth persisted, it was more gradual and contested compared to the rapid expansion seen in previous decades.
Intense Pricing Battles in an Inflationary Environment
Pricing strategies became the most visible arena of competition in 2025. Operators in key markets such as Nigeria, Kenya, South Africa, and Ghana launched aggressive promotions, bonus data packages, and app-specific bundles to protect market share amid rising inflation and the ongoing erosion of traditional voice and SMS revenues by over-the-top (OTT) services.
New entrants, including mobile virtual network operators (MVNOs) and satellite-based providers, intensified competitive pressures. Established players responded by adopting sophisticated segmentation tactics, bundling mobile data with fintech solutions, entertainment platforms, and fixed-wireless broadband offerings.
In Nigeria and South Africa, these tensions were particularly pronounced. In January 2025, the Nigerian Communications Commission authorized a historic 50% increase in regulated telecom tariffs-the first such hike in over ten years. Voice call rates rose from approximately ₦11 to ₦15.40 per minute, SMS fees increased from ₦4 to ₦5.60, and the benchmark price for 1GB of data climbed from about ₦1,000 to at least ₦1,400.
The market reacted swiftly. MTN Nigeria and SWIFT Networks were among the first to implement price increases, with MTN adjusting popular bundles beyond the official tariff rise before issuing a public apology. Airtel Nigeria followed suit, restructuring plans and raising prices by roughly 50%. By mid-2025, the average cost of 1GB of data had surged to approximately ₦430-₦450 ($0.31), up from under ₦300 prior to the tariff adjustment and bundle repricing.
Meanwhile, South Africa reignited debates over “data expiry” policies. Parliament advocated for non-expiring or extended-validity data bundles, citing consumer protection concerns, while operators like MTN and Vodacom argued that eliminating data expiry was impractical and could disrupt pricing models, potentially increasing costs for low-income users.
Revenue Growth and Consumer Backlash
The tariff revisions provided operators with much-needed financial relief, enabling increased investment. By Q2 2025, MTN and Airtel reported average revenue per user (ARPU) growth of around 31% to 32%. Industry figures indicated that Nigerians were spending approximately ₦721 billion ($480.7 million) monthly on data services by mid-year, even as consumer advocacy groups raised alarms about worsening affordability.
Telecoms’ contribution to Nigeria’s GDP rebounded sharply, with Q3 output reaching about ₦4.4 trillion ($2.93 billion). Operators unlocked over $1 billion in new infrastructure investments, directly linking higher tariffs to capital expenditure increases.
However, the price hikes also exacerbated the digital divide. For millions of low-income users, rising data costs forced them to ration internet usage or disconnect entirely, despite the expansion of network coverage around them.
Fiber Optics: The Strategic Backbone
While pricing dominated consumer-facing competition, fiber-optic infrastructure became the strategic battleground behind the scenes. Across Africa, telecom companies, governments, and neutral-host infrastructure providers raced to secure fiber routes connecting subsea cables to urban centers, data centers, and 5G sites.
New subsea cable systems, such as the Medusa cable-which landed in Bizerte, Tunisia, in November 2025-and the SEA-ME-WE-6 cable, which completed its Egyptian landing in July 2025, have transformed regional connectivity. By September 2025, the 2Africa cable had established landings along both the west and east African coasts, significantly boosting international bandwidth for countries including Nigeria, South Africa, Kenya, Senegal, and Ghana. Together with Google’s Equiano cable, these systems have driven down wholesale bandwidth costs and positioned key coastal markets as regional interconnection hubs.
Governments have also played a crucial role. In Nigeria, the World Bank approved $500 million toward a $2 billion public-private initiative to deploy 90,000 km of fiber by late 2025, enhancing inland coverage and 5G readiness. Similar national and regional fiber backbones are emerging across East and Southern Africa.
Kenya is expanding its National Optic Fibre Backbone Infrastructure (NOFBI) to connect counties and border regions, linking neighboring countries such as Uganda, Ethiopia, South Sudan, and Tanzania. World Bank-supported transport corridors, including the Northern Corridor and the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) project, are also facilitating fiber deployment.
In Southern Africa, providers like Openserve, Liquid Intelligent Technologies, and WIOCC connect subsea cable landings to major cities and neighboring countries, creating multi-country backbone rings. Landlocked nations such as Uganda, Rwanda, and Zambia have developed wholesale fiber backbones aligned with the African Union’s “digital superhighway” vision, reducing costs and dependence on a limited number of mobile network operator-controlled routes, similar to Nigeria’s open-access fiber model.
Data Centers and the AI Revolution
Africa hosts over 150 active data centers, with South Africa (25.1%), Nigeria (15%), and Kenya (13.3%) holding the largest shares. New carrier-neutral data centers are clustering near major subsea cable landing stations and are interconnected by high-capacity fiber rings. This infrastructure reduces latency and backhaul expenses, enabling low-latency services for enterprises and global cloud providers.
This evolution has shifted telecom operators’ growth strategies. While consumer mobile services remain important, enterprise connectivity, data center interconnection, and wholesale fiber have emerged as more reliable revenue streams. Control over prime fiber routes is increasingly critical to capturing the next wave of digital demand.
In 2025, leading African operators accelerated fiber backhaul investments to support 5G rollouts and high-speed home broadband in key markets. Airtel Africa, MTN, Safaricom, and Liquid Intelligent Technologies expanded long-haul capacity in Nigeria and Kenya. Airtel Nigeria increased capital expenditure to $875-$900 million, Safaricom expanded its 5G network to 1,700 sites covering 30% of the population, MTN’s Bayobab project targeted 135,000 km of proprietary fiber, and Liquid leveraged its 110,000 km network to enhance middle-mile connectivity for 5G and cloud services.
Vodacom Group pursued a similar approach, acquiring a 30% stake in Maziv (Vumatel and DFA) for $790.49 million, allocating $1.38 billion in regional capital expenditure, and entering an infrastructure-sharing agreement with Airtel Africa to accelerate 5G backhaul in Tanzania, Mozambique, and the Democratic Republic of Congo.
5G Expansion and Monetization Challenges
While fiber quietly reinforced the industry’s foundation, 5G remained the most visible symbol of progress. In 2025, South African operators transitioned from pilot projects to broader mid-band 5G deployments, focusing on Fixed Wireless Access (FWA) to deliver high-capacity broadband to homes and businesses.
Telkom South Africa emphasized FWA to grow its broadband ecosystem, Vodacom deployed dual-band massive MIMO technology to enhance FWA capacity, MTN achieved 44% population coverage with a focus on mid-band FWA and private networks, and Rain solidified its position with uncapped 5G home WiFi services. FWA emerged as a significant revenue contributor, accounting for 24% of 5G earnings as router prices dropped below $80.
In Nigeria, operators continue to market 5G as a fixed broadband alternative, offering home routers and uncapped or high-capacity data plans in urban centers like Lagos, Abuja, and Port Harcourt, where fiber or copper infrastructure is limited.
In East Africa, Safaricom more than doubled its 5G sites in Kenya during 2025, increasing from 803 to 1,700 sites and covering about 30% of the population as part of national broadband objectives.
North African countries such as Tunisia and Egypt launched commercial 5G services in early to mid-2025. Morocco’s telecommunications regulator, ANRT, awarded 5G licenses to Maroc Telecom, Orange, and inwi, mandating at least 45% population coverage by 2026 and 85% by 2030, making regulatory targets a key driver of rollout.
Despite these deployments, 5G monetization remains limited. By 2024-2025, 5G accounted for only 1-2% of mobile connections in Sub-Saharan Africa, with 98-99% of SIM cards still operating on 2G to 4G networks. Depending on the country, 4G connections comprised roughly one-third to nearly half of all mobile subscriptions.
Entry-level 5G smartphones in markets like Nigeria cost between ₦160,000 ($114) and ₦200,000 ($143), more than three times the monthly minimum wage. GSMA estimates that a basic smartphone consumes about 48% of a low-income earner’s monthly income. As a result, millions continue to use 3G and 4G devices, which provide sufficient speeds for popular applications such as WhatsApp, streaming, and mobile money. This creates a paradox: capital-intensive 5G networks are being deployed in markets where basic affordability remains a significant constraint.
Operator Transformation and Strategic Shifts
These challenges have compelled operators to reconsider their business models. T2 Nigeria, formerly known as 9mobile and the country’s fourth-largest operator, exemplifies this trend.
Under new ownership, T2 embarked on a multi-stage turnaround, beginning with stabilization and progressing to extensive modernization. Years of underinvestment had left its infrastructure outdated, necessitating a comprehensive rebuild of radio networks, core systems, transmission infrastructure, and billing platforms.
The transformation culminated in a full rebranding to “T2” in August 2025, positioning the company as a digital-first contender. Executives framed the new identity as a symbol of renewed competitiveness, supported by shareholder commitments to fund network upgrades and reposition the brand in an increasingly competitive market.
While the success of this reinvention remains uncertain, it reflects a broader industry reality: stagnation is no longer an option.
Satellite Connectivity Joins the Mix
Alongside fiber and 5G, 2025 marked a turning point for satellite and mobile network integration. On May 5, 2025, Airtel Africa announced a landmark partnership with SpaceX to introduce Starlink Direct-to-Cell connectivity across its 14 markets, serving 174 million customers.
Scheduled to launch in 2026, this service will enable compatible smartphones to connect directly to satellites in areas lacking terrestrial coverage. For Airtel, the partnership offers a means to extend connectivity into remote regions where fiber and towers are economically unviable, reinforcing its commitment to digital inclusion.
This collaboration signals a shift in network strategy: satellite connectivity is increasingly viewed not as a replacement for terrestrial infrastructure but as a complementary solution that fills coverage gaps in hard-to-reach areas.
Facing Complex Trade-offs in Africa’s Telecom Future
In 2025, Africa’s telecommunications sector entered a more nuanced phase of development. Pricing reforms restored operators’ investment capacity but intensified affordability challenges. Fiber deployment surged, primarily in urban and economically strategic corridors. 5G networks expanded rapidly, even as many consumers hesitated to upgrade due to cost constraints.
This convergence of pricing pressures, fiber expansion, and 5G rollout forced the industry to grapple with a fundamental dilemma: how to balance financial viability with inclusive growth. A definitive solution remains elusive.
What is undeniable is that 2025 marked a structural turning point. The era of effortless subscriber growth has ended. Africa’s telecom trajectory will be shaped not only by the speed of network expansion but also by who can afford to access these networks-and who risks being left behind.
