LONDON, 28 February 2025 – Global telecoms revenue is projected to rise at a CAGR of 2.9% through to 2028, below inflation, even as the sectors total revenue across fixed and mobile verticals rose 4.3% in 2023 to hit US$1.1 trillion, according to PwC’s Global Telecoms Outlook, published today ahead of Mobile World Congress in Barcelona, Spain (3-6 March 2025).
The Outlook finds that the telecoms industry faces a sluggish outlook amid rising costs and competition, muted subscriber growth, and lingering macroeconomic and geopolitical pressures. Despite their being volume growth in the sector, average revenue per unit (ARPU) is expected to decline on average 2% annually until 2028, across mobile, fixed broadband, and voice services.1
But while the Outlook points to a challenging environment in need of re-invention, wide variation exists in the growth outlook between services and markets. For instance, fixed broadband and mobile subscriptions are projected to grow annually by 3.8% and 4.3% until 2028, respectively, while fixed voice subscriptions are expected to decline by 1.8%. Across geographies, fixed subscriptions are projected to grow between 0-6% -- with higher growth markets including India (17.2%), Nigeria (9.2%) and Malaysia (9%).
Dr. Florian Gröne, Global Telecoms Leader, PwC US, said:
“The telecoms industry must re-imagine 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.”
5G subscriptions projected to quadruple as capital shifts to fixed connectivity
Despite sluggish uptake in 5G services to-date, subscriptions for the service are expected to more than quadruple, from 1.79 billion in 2023 to 7.51 billion in 2028, with its share of total mobile subscriptions more than tripling, from 18.8% in 2023 to 64.1% in 2028. 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 to 2028, rising at a CAGR of 18.3%.
Against this backdrop, momentum of capital is shifting decisively towards fixed connectivity – or fibre. In 2023, total telecom capex fell 2.3%, driven by a 5.7% decline in mobile. However, industry capex is projected to grow at a 2.4% CAGR from 2024, fuelled initially by fixed broadband investments for fibre roll-out, and later in the period by a revival in mobile CapEx as operators prepare for 6G.
Automotive and mobility sector to power cellular internet-of-things (IoT) services
Driven in large part by increased adoption of smart automobiles and the mobility sector, cellular internet-of-things (IoT) services has emerged as an industry bright spot across all regions. Overall, IoT revenue in the automotive sector is projected to more than double between 2023 and 2028 to reach US$34.1 billion, rising at a CAGR of 15.8%.
The AI imperative
As new and emerging technologies transform industry, fuel demand for connectivity services and digital infrastructure and investment, AI presents a significant opportunity for the telecoms industry, but one that still remains under-utilised. At the consumer level, AI tools and capabilities can also help telcos deliver personalised customer experiences, boosted workforce productivity and deployment, and AI-powered cognitive network operations centres (NOCs) that provide actionable insights and efficiencies in real time.
Wilson Chow, Global TMT Lead & China AI Lead, PwC China, said:
"Telecoms players must accelerate their investment and application of AI technologies if they are to transform their cost base and customer experience. At the same time, the digital infrastructure needed to power the AI economy will also create significant opportunity 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."
-Ends-
1 Telecoms service ARPU will continue to decline over the next five years, with mobile ARPU falling at a CAGR of –1.3%, and fixed broadband ARPU essentially flat at a CAGR of –0.1%.
About PwC’s Global Telecoms Outlook
PwC’s Global Telecoms Outlook is part of a perspectives series on the telecoms industry comprising of three pieces of thought leadership, including the Global Telecoms Outlook, The State of Competition in Telecoms, and Digital Infrastructure & Climate in Telecoms. The research will be launched ahead of Mobile World Congress (MWC) in Barcelona, Spain, on 3 March 2025. The Telecoms Outlook covers 53 countries and territories across five telco segments with a range of revenue and non-revenue sub-categories, including fixed, mobile, CapEx, IoT and data consumption. The Outlook draws on various third-party data sets. The full series can be viewed on www.pwc.com.
About PwC
At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 149 countries with more than 370,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.
Almost 60% of CEOs around the world expect global economic growth to increase over the next 12 months, according to PwC’s 28th Annual Global CEO Survey, launched today during the World Economic Forum Annual Meeting.
Almost four-fifths (77%) of organisations expect their cyber budget to increase over the coming year as organisations cite unpreparedness to an ever-expanding surface of cyber vulnerabilities, according to PwC’s 2025 Global Digital Trust Insights survey, released today.
Despite economic headwinds, technological disruption and increased geographic and industry competition, the global entertainment & media (E&M) industry has continued to grow in 2023, with total revenues rising 5% in 2023 to US$2.8 trillion according to PwC’s Global Entertainment & Media Outlook 2024-28, published today.
Ryan Stanton
Managing Director, Global Corporate Affairs & Communications, PwC United States
Tel: +1 310-367-1045
