South Africa has fallen behind its international peers both developing and developed markets in the race to rollout broadband services. In fact, even within the African continent, it is neither the broadband leader nor progressive in comparison to its Northern African counterparts. This chapter explores the development of broadband services in South Africa, as well as touching on the challenges faced in bringing this phenomenon into the mainstream. Reasons for the lack of diffusion and adoption of such services point to high end user costs of the service, a very limited geographical footprint of both fixedline and mobile broadband infrastructure, as well as a lack of computer literacy and an understanding of what broadband is able to offer. The chapter looks at possible solutions, including introducing a greater degree of competition into the market to facilitate downward pressure on prices, as well as providing cost-based access to international submarine fiber cables and the unbundling of the local loop to further this objective.