Global telecoms revenue is projected to reach $1.1 trillion by 2028, driven by fixed broadband and 5G subscriptions, despite mounting cost pressures and sluggish subscriber growth, PwC said in its Global Telecoms Outlook report published on Tuesday.
The report, released ahead of the Mobile World Congress in Barcelona, forecasts the telecoms industry’s revenue to grow at a compound annual growth rate of 2.9 per cent through 2028 — below inflation levels — as operators contend with rising costs, competition, and subdued subscriber expansion.
Fixed broadband and mobile subscriptions are projected to grow annually by 3.8 per cent and 4.3 per cent, respectively, while fixed voice subscriptions are expected to decline by 1.8 per cent over the forecast period.
Across regions, fixed broadband subscriptions are forecast to grow between 0-6 per cent, with high-growth markets including India (17.2 per cent), Nigeria (9.2 per cent), and Malaysia (9 per cent).
“The telecoms industry must reimagine how it creates, delivers, and captures value in the face of rising costs and competition,” Global Telecoms Leader at PwC US, Dr. Florian Gröne, said.
“The industry faces enormous potential, particularly as consumers and societal actors increasingly operate across digital platforms and AI drives significant investments in digital connectivity infrastructure.
“But the industry remains sensitive to macroeconomic forces and is highly cost-intensive, with almost all the cash it generates absorbed by CapEx, dividends, and servicing debt.
As new and emerging technologies transform sectors, the telecoms industry must harness the power of AI while working with investors and regulators to optimise market structure and deploy deals to build scale,” Gröne added.
Global TMT Lead and China AI Lead at PwC China, Wilson Chow, said telecom operators must accelerate their adoption of AI technologies to transform their cost base and customer experience.
“The digital infrastructure needed to power the AI economy will also create significant opportunities for utility providers to deliver the next version of the internet — the ‘AI grid’ — and serve the growing demand for connectivity.
“The telecoms industry is uniquely positioned to lead the way, considering their operation at scale, real estate footprint, and expertise on networks, but they must move quickly to ensure first-mover advantages,” Chow said.
