PwC – Telecommunications Outlook Perspectives Report, 2023

The telecommunications industry is facing a strategic challenge due to the increasing demand for data and the inability for providers to increase pricing on connectivity and data services.

Despite the significant growth in data consumption, revenues from internet access are projected to rise modestly at a 4% CAGR through 2027. Telecommunications companies (telcos) will also need to make substantial investments in infrastructure, with an estimated $342.1 billion to be invested in networks in 2027 alone. PwC's Global Telecom Outlook highlights the need for telcos to find pockets of growth amidst the challenging landscape. These opportunities include Internet of Things (IoT) solutions, private 5G networks for businesses, fixed wireless home broadband, and digital infrastructure services tailored to specific sectors. To succeed, telcos must become more comfortable working within the broader ecosystems that are transforming the industry. The report focuses on three key domains: consumer offerings, business services, and the evolution of networks to meet changing customer needs. In the consumer space, telcos are experiencing increased demand for data due to evolving user preferences, particularly driven by video consumption. By 2027, almost 80% of data consumed will consist of digitized video content, highlighting the importance of catering to this growing trend. Overall, the report emphasizes the importance of understanding consumer demands and leveraging growth opportunities in order to sustain outcomes and growth in the telecommunications industry. Telcos need to adapt to the changing landscape and invest in technologies that will meet the needs of their customers.