The global telecommunications industry is set to generate $1.3 trillion in revenue by 2028, according to PwC’s Global Telecom Outlook 2024-2028 report. While the sector continues to expand, its growth rate is slowing due to pricing challenges and increasing commoditization of services.
In 2023, total service revenue from fixed and mobile networks grew by 4.3% to reach $1.14 trillion. However, PwC forecasts a compound annual growth rate (CAGR) of just 2.9% through 2028, below the projected rate of inflation, leading to a modest increase in total revenue to $1.3 trillion.
Nigeria’s telecommunications industry has emerged as one of the fastest-growing markets globally, driven by a surge in mobile subscriptions. In 2024 alone, mobile service revenue in the country reached $7.6 billion, with the sector expected to grow at a CAGR of 8% between 2023 and 2028. Subscriber numbers are projected to rise at an impressive CAGR of 9.8%, although average revenue per user (ARPU) remains under pressure.
Fixed-line services in Nigeria are expected to decline during this period, with ARPU decreasing at a CAGR of -1.4%. However, the rapid expansion of mobile services highlights the country’s potential as a key player in global telecom growth.
The report shows a fundamental challenge faced by telecom companies worldwide: the commoditization of core products and services. This trend has made it difficult for operators to raise prices despite substantial investments in infrastructure, including advancements in 5G and broadband technologies.
PwC predicts an additional $200 billion in incremental revenue growth across the sector by 2028, presenting opportunities for companies that can innovate and create new value streams from existing services.
Emerging markets such as India, Nigeria, Egypt, and Kenya are leading global telecom growth with above-average CAGRs, while mature markets like Japan and Switzerland are experiencing stagnation or decline. For instance:
Fixed broadband and mobile subscriptions are expected to grow steadily at CAGRs of 3.8% and 4.3%, respectively.
Fixed voice subscriptions are projected to decline at a CAGR of -1.8%.
Mobile revenue growth also varies significantly across regions, with Colombia leading at a CAGR of 10.5%, followed by India and Argentina. In contrast, mature markets like Japan and Switzerland are seeing declines.
Telecom operators globally are under increasing pressure to find innovative ways to generate value. Emerging technologies such as artificial intelligence (AI), advanced data analytics, and enhanced connectivity solutions could play a pivotal role in driving future growth.
Despite its challenges, the telecommunications sector remains critical to global economic development, with emerging markets providing significant opportunities for expansion in the years ahead.
