India drives global telecom spending growth as global market to hit $1.53tr in 2025

• Pay TV segment faces slight contraction amid growing competition from Video-on-Demand and over-the-top platforms.
• EMEA region will continue to outpace others, bolstered by hyperinflation-fueled nominal gains in Turkey, Egypt, and Nigeria.
• Operators globally are sharpening their focus on margin improvement and technology-driven operational efficiency.
• AI adoption is accelerating across network management, customer service, and fraud prevention, yielding tangible EBITDA improvements and supporting sustainable growth.

India is emerging as the leading growth engine for global telecommunications, helping to offset regional slowdowns as worldwide spending on telecom and pay TV services is projected to reach $1,532 billion in 2025, according to the International Data Corporation (IDC) Worldwide Semiannual Telecom Services Tracker.

IDC’s latest forecast represents a 1.7 per cent year-on-year rise, slightly higher than previous projections. The improved outlook is fueled in large part by India’s exceptional performance, notably robust growth in mobile Average Revenue per User (ARPU), which pushes the region toward double-digit market expansion.

The surge is helping to counterbalance more modest projections for the wider Asia Pacific region, impacted by ongoing economic uncertainty in countries such as China, Japan, and Indonesia.

“India continues to outperform, with exceptional growth in mobile ARPUs pushing the market toward double-digit expansion and helping offset regional value erosion,” Kresimir Alic, Research Director, Worldwide Telecom Services at IDC, said.

Mobile, fixed data lead expansion

Globally, mobile services continue to dominate, driven by climbing data consumption and machine-to-machine (M2M) applications, which are countering declines in traditional voice and messaging.

Fixed data services are also on an upward trajectory as demand for high-bandwidth connectivity intensifies. By contrast, spending on fixed voice is expected to shrink further due to legacy technology declines not fully offset by newer IP voice services.

Meanwhile, the traditional Pay TV segment faces slight contraction amid growing competition from Video-on-Demand (VoD) and over-the-top (OTT) platforms; however, it remains a cornerstone of bundled offerings from telecom companies.

The sector as a whole is forecast to register a compound annual growth rate (CAGR) of 1.5 per cent over the next five years, despite a global business environment marked by protectionism, economic volatility, and persistent inflation in key regions.

Mixed regional dynamics and challenges

The Americas are expected to maintain a largely stable outlook, with minor upward revisions in several Latin American markets. The EMEA region—encompassing Europe, the Middle East, and Africa—will continue to outpace others, bolstered by hyperinflation-fueled nominal gains in Turkey, Egypt, and Nigeria.

Despite these regional differences, operators globally are sharpening their focus on margin improvement and technology-driven operational efficiency. AI adoption is accelerating across network management, customer service, and fraud prevention, yielding tangible EBITDA improvements and supporting sustainable growth.

By leveraging AI for predictive maintenance, dynamic pricing, and personalised service offerings, telecoms aim to bolster ARPUs and reduce churn, while also capturing new revenue opportunities from 5G and edge computing rollouts.

As IDC notes, these technological and strategic shifts position the industry for continued, if measured, growth—provided operators adapt swiftly to evolving regional and economic realities.