Vodacom, MTN, Telkom, and Cell C became sexy again

South African telecommunications companies have become popular among investors again, with a big jump in their JSE share prices in 2025.

For many years, investors treated Vodacom, MTN, and Telkom as ex-growth companies operating in a challenging environment.

Voice revenues, the traditional growth engine for telecommunications companies, came under pressure with the advent of smartphones and mobile data.

Although data became a significant new revenue stream, it did not scale as well as voice due to its network demands and political pressure on data prices.

Mobile operators must invest billions in their networks to cope with growing data demand, and they are consistently under pressure to reduce data prices.

These companies have extended into financial services providers to open up new revenue streams, which are starting to reap rewards.

However, the days of big annual growth year after year, as seen in the 1990s and 2000s, are long gone.

For this reason, the share price of telecommunications companies listed on the Johannesburg Stock Exchange (JSE) has been under pressure for years.

However, things changed in 2025. Investors started to pump money into companies like Vodacom, MTN, and Telkom again.

Even Blue Label Telecoms, which owns Cell C, has seen a surge in its share price over the last year.

Asset managers and analysts are more upbeat about the prospects of South African telecommunications companies.

They see opportunities with developments like Vodacom buying Maziv, which owns Vumatel and DFA, and Cell C’s potential listing.

South African telecommunications companies’ financial comparison

South African telecommunications share price comparison