- PricewaterhouseCoopers said global telecommunications revenue would reach $1.1 trillion by 2028, driven by fixed broadband and 5G subscriptions
- It urged telecom operators to harness the benefits of emerging technologies like Artificial Intelligence
- PwC said the telecom industry is uniquely positioned for growth over the forecast period
PricewaterhouseCoopers (PwC) says global telecommunications revenue is projected to reach $1.1 trillion by 2028, driven by fixed broadband and 5G subscriptions.
In its Global Telecoms Outlook report published on Tuesday, March 4, PwC said the telecom industry can achieve the revenue projection despite mounting cost pressures and slow subscriber growth.
The report, released ahead of the Mobile World Congress in Barcelona, projects the telecoms industry’s revenue to grow at a compound annual growth rate (CAGR) of 2.9 per cent through 2028, below inflation levels, as operators battle rising costs, competition, and sluggish subscriber expansion.
Fixed broadband is expected to grow annually by 3.8 per cent, mobile subscriptions to rise by 4.3 per cent annually, and fixed voice subscriptions are expected to decline by 1.8 per cent over the forecast period.
The report also forecasts fixed broadband subscriptions to grow between zero and six per cent across regions, with high-growth markets including India (17.2 per cent), Nigeria (9.2 per cent), and Malaysia (9 per cent).
Telecoms industry must harness AI, other emerging techs – PwC
Global Telecoms Leader at PwC US, Dr Florian Gröne, said the telecoms industry is faced with rising costs and competition.
Gröne noted that the industry must innovate and harness the benefits of emerging technologies such as Artificial Intelligence (AI) to stay ahead of the curve.
“The telecoms industry must reimagine how it creates, delivers, and captures value in the face of rising costs and competition.
“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 said.
‘Telecoms industry is uniquely positioned to lead’
Global TMT Lead and China AI Lead at PwC China, Wilson Chow, added that 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.
Nigeria’s telecom sector records 87% decline in foreign investments in Q3 2024
Meanwhile, TheRadar earlier reported that Nigeria’s telecommunications sector recorded an 87 per cent decline in foreign investments for the third quarter (Q3) of 2024, according to the latest capital importation data released by the National Bureau of Statistics (NBS).
The sector attracted only $14.4 million in capital importation in Q3, representing a significant 87 per cent decline from the $113.42 million investments recorded in the second quarter of the year.
