Global Telecoms Revenue to Hit $1.1 Trillion by 2028 Despite Challenges

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The global telecoms industry is projected to experience a 4.3 per cent revenue growth in 2023, reaching $1.1 trillion by 2028, despite facing significant challenges. According to PwC’s ‘Global Telecoms Outlook’, the industry’s revenue is expected to grow at a Compound Annual Growth rate (CAGR) of 2.9 per cent through 2028, below inflation, with $200 billion in incremental revenue growth up for grabs by 2028.

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The report notes that the telecoms industry faces a sluggish outlook amid rising costs and competition, muted subscriber growth, and lingering macroeconomic and geopolitical pressures. “Despite there being volume growth in the sector, Average Revenue Per Unit (ARPU) is expected to decline on average two per cent annually until 2028, across mobile, fixed broadband, and voice services,” the report said.

However, the Outlook points to a significant variation in growth outlook between services and markets. Fixed broadband and mobile subscriptions are projected to grow annually by 3.8 per cent and 4.3 per cent until 2028, respectively, while fixed voice subscriptions are expected to decline by 1.8 per cent.

Across geographies, fixed subscriptions are projected to grow between 0-6 per cent — with higher growth markets including India (17.2 per cent), Nigeria (9.2 per cent) and Malaysia (9 per cent).

“The telecoms industry must re-imagine how it creates, delivers and captures value in the face of rising costs and competition,” said Dr. Florian Gröne, Global Telecoms Leader, PwC US. “The industry faces enormous potential, particularly as consumers and societal actors increasingly operate across digital platforms and Artificial Intelligence (AI) drives significant investments in digital connectivity infrastructure.”

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The Outlook also notes that 5G subscriptions are projected to quadruple as capital shifts to fixed connectivity. “At this rate, 5G is expected to become the dominant mobile standard from 2026. One particular application is Fixed-Wireless Access (FWA) – which is projected to be the fastest growing broadband technology by 2028, rising at a CAGR of 18.3 per cent,” the report said.

In addition, the Outlook highlights the growing importance of AI in the telecoms industry. “Telecom players must accelerate their investment and application of AI technologies if they are to transform their cost base and customer experience,” said Wilson Chow, Global TMT Lead & China AI Lead, PwC China. “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.

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