The global telecommunications industry is projected to generate $1.3 trillion in revenue by 2028, despite sluggish growth and pricing challenges, according to PwC’s Global Telecom Outlook 2024-2028 report.
In 2023, total service revenue across fixed and mobile networks rose by 4.3% to $1.14 trillion. However, the growth rate is expected to slow, with revenues increasing at a compound annual growth rate (CAGR) of only 2.9%, below the projected inflation rate.
Nigeria’s telecommunications industry recorded significant growth in 2024, with mobile service revenue reaching $7.6 billion. The sector is expected to expand at a CAGR of 8% between 2023 and 2028, making it one of the fastest-growing telecom markets globally.
The report attributes Nigeria’s telecom growth to rising mobile subscriptions rather than higher average revenue per user (ARPU). Fixed-line ARPU is expected to decline at a CAGR of –1.4%, while subscriber numbers are set to rise at 9.8% annually.
Pricing Challenges Impact Growth
The telecom industry faces a major hurdle: the increasing commoditization of core services, making price increases difficult despite heavy infrastructure investments. PwC projects an additional $200 billion in incremental revenue growth by 2028, but telecom companies must find new ways to extract value from existing services.
Regional Growth Variations
While global telecom revenue growth remains modest, different markets show varying trends. Fixed broadband and mobile subscriptions are expected to grow steadily at 3.8% and 4.3% CAGR, respectively, while fixed voice subscriptions will decline at -1.8% CAGR.
Emerging markets like Nigeria, India, Egypt, and Kenya are seeing higher-than-average growth, while mature markets such as Japan and Switzerland face stagnation or decline. Mobile revenue growth is strongest in Colombia (10.5% CAGR), followed by India and Argentina, while advanced economies struggle with minimal or negative growth.
Despite challenges, the global telecom sector continues to evolve, with opportunities for growth in emerging markets and innovative digital services.
