PricewaterhouseCoopers’ Global Telecom Outlook 2024-2028 projects that the telecommunications industry will generate $1.3 trillion in revenue by 2028, despite sluggish growth and pricing challenges.
According to the report, total service revenue from fixed and mobile networks grew by 4.3% in 2023, reaching $1.14 trillion.
However, the industry’s revenue growth rate is projected to decline in the coming years.
“Global industry revenues will rise at a compound annual growth rate (CAGR) of only 2.9% through 2028, below the projected rate of inflation, at which point total revenues will edge up to US$1.3 trillion,” the report stated.
The report highlights significant growth in Nigeria’s telecommunications industry in 2024, with total mobile service revenue reaching $7.6 billion.
The sector is projected to grow at a CAGR of 8% from 2023 to 2028, positioning it among the world’s fastest-growing telecom markets.
The report attributes Nigeria’s telecom growth mainly to rising mobile subscriptions rather than an increase in average revenue per user.
“In Nigeria, fixed-line ARPU is projected to decline at a CAGR of –1.4%, while subscriber numbers rise at a CAGR of 9.8%,” the report noted.
The report highlights a key challenge for the global telecommunications industry: the growing commoditization of core products and services. This limits price increases despite continued heavy investments 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.
Despite these challenges, the industry remains poised for growth, with PwC projecting an additional $200 billion in revenue by 2028.
Emerging markets are set to drive telecom growth, while mature markets face stagnation or decline.
The report highlights countries like India, Nigeria, Egypt, and Kenya as having above-average growth, while markets such as Japan and Switzerland show minimal or no growth.
““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.
