The global telecommunications industry is projected to generate $1.3 trillion in total revenue by 2028, despite facing slow growth and pricing challenges, according to PwC’s Global Telecom Outlook 2024-2028 report.
The report revealed that total service revenue across fixed and mobile networks grew by 4.3% in 2023 to reach $1.14 trillion. However, the industry’s revenue growth rate is expected to decelerate, with PwC forecasting a compound annual growth rate (CAGR) of just 2.9% through 2028, below the projected inflation rate.
Nigeria Among Fastest-Growing Telecom Markets
In contrast to the global slowdown, Nigeria’s telecommunications sector recorded significant growth in 2024, with total mobile service revenue reaching $7.6 billion. The sector is projected to expand at an 8% CAGR between 2023 and 2028, making it one of the fastest-growing telecom markets worldwide.
According to the report, Nigeria’s telecom growth is driven by a surge in mobile subscriptions rather than higher average revenue per user (ARPU). Fixed-line ARPU in Nigeria is expected to decline at a CAGR of -1.4 %, while subscriber numbers are projected to rise by 9.8%.
Pricing Challenges and Growth Barriers
The global telecom industry is grappling with the increasing commoditization of core products and services, making it difficult for operators to raise prices despite continued investment in infrastructure.
“Its core products and services are becoming commodities, meaning it has difficulty raising prices, while it faces a continual need to invest in infrastructure,” the report stated.
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Despite these challenges, PwC projects an additional $200 billion in incremental revenue growth for the sector by 2028. However, telecom operators are under increasing pressure to find new revenue streams and maximize existing ones.
Emerging Markets Drive Growth
PwC’s report highlights regional variations in telecom growth. While mature markets like Japan and Switzerland are experiencing stagnation or decline, emerging markets such as India, Nigeria, Egypt, and Kenya are showing above-average growth rates.
“In fixed telecoms, most countries are grouped around the 0 to 6% CAGR range, including the US and China. But a few outliers show much higher growth—notably India, Nigeria, Egypt, and Kenya,” the report stated.
Mobile revenue growth also varies significantly, with Colombia leading at a 10.5% CAGR, followed by India and Argentina. Meanwhile, mature markets like Japan and Switzerland are seeing declines.
