MEA telecoms and pay TV market grows more than global average in 2024

• Fuelled by infrastructure investments, rising data consumption, and an industry-wide technological transformation

The Middle East and Africa (MEA) region’s telecommunications and pay TV sector has demonstrated remarkable resilience and growth in recent years.

In 2024, spending in this sector reached a substantial $149 billion, marking a 7.7 per cent increase year over year, significantly outpacing the global average growth rate of 2.2 per cent.

The robust expansion underscores the dynamic nature of the MEA telecom market, driven by a combination of increasing demand, strategic investments, and evolving market dynamics.

IDC projects this upward trajectory to persist, forecasting a 7.3 per cent growth in 2025 which would elevate total spending to nearly $160 billion. However, this positive outlook remains cautiously informed by the geopolitical uncertainties that have yet to be fully assessed.

Several factors underpin this vigorous growth. The MEA region experienced the fastest post-COVID recovery in telecom services, fueled largely by aggressive investments in network infrastructure, particularly in underpenetrated markets across Africa.

Telecom operators have expanded cellular and fibre networks to meet the surging demand for data services, recognising the untapped potential within these markets. Such infrastructural enhancement is critical, as connectivity becomes a vital enabler of modern socioeconomic activities.

Furthermore, despite inflationary pressures notably in countries such as Turkey, Egypt, Nigeria, Sudan, and Zimbabwe, telecom providers have managed to maintain demand even while increasing tariffs, reflecting the essential nature of these services.

A significant shift

A significant shift within the telecom landscape is evident in consumer preferences. Spending on fixed voice services has declined, supplanted by mobile voice and data usage, largely due to the widespread adoption of over-the-top (OTT) calling and messaging applications.

This trend is especially pronounced in Africa, where mobile phones often serve as the primary—and sometimes sole—access device for entertainment, banking, commerce, and information. This shift not only redefines consumer engagement but also motivates operators to pivot their strategies toward enhanced mobile service offerings and digital innovation.

Notwithstanding the encouraging growth figures, IDC’s latest forecast released in 2024 projects a marginally slower growth rate for telecom services in 2025 by 1.2 percentage points. This tempered optimism is attributable to various factors, including easing inflation in certain countries and revised outlooks from key telecom operators.

Profound transformation

As indicated by Krishna Chinta, IDC’s senior program manager for data and analytics in MEA, telecom operators are undergoing a profound transformation.

“They are transitioning from traditional service providers into technology companies—‘techcos’—with a focus on innovation, process efficiency, customer experience, and competitive differentiation.”

This transformation involves revamping IT architectures, virtualising networks, modernising applications, adopting cloud-native platforms, investing in edge computing infrastructure, and harnessing artificial intelligence to optimise operational and network efficiency.

Technological advancement remains a major theme in the region’s telecom sector. While many Gulf Cooperation Council (GCC) countries and other parts of the MEA region have already deployed 5G infrastructure, wider rollout is anticipated over the next five years.

Concurrent investments continue in fibre-optic networks and emerging low Earth orbit (LEO) satellite services, aimed at extending coverage and enhancing service quality across vast and often challenging terrains.

Potential challenges

Nonetheless, the trajectory of the MEA telecom market is not without risk. The complex geopolitical environment poses potential challenges to trade flows and oil price stability, both critical elements for economic stability in the region. Trade tariffs recently introduced by the new US administration add another layer of uncertainty.

According to Mark Walker, IDC’s vice president of worldwide telecoms data and analytics, increased tariffs on telecommunications equipment may raise costs for operators, potentially delaying key projects such as 5G rollout and artificial intelligence initiatives.

In the longer term, he said that such economic pressures could exacerbate inflation and reduce overall purchasing power, impacting the broader business environment and employment conditions—factors that indirectly influence the telecom market.