In its latest report, market research firm International Data Corporation (IDC) found that global spending on telecom and pay TV services reached USD 1.551 trillion in 2025, growing 2% year over year despite inflation, geopolitical tensions, and slower economic growth.
Talking about the sector’s prospects in 2026, IDC expects spending to grow another 1.8% to USD 1.58 trillion, driven partly by the expansion of Low Earth Orbit (LEO) satellite broadband services that could improve internet access in underserved areas, including remote communities in the Philippines.
“The Americas generated USD 576 billion in telecom services revenue in 2025, while Asia Pacific (APAC) posted USD 484 billion and Europe, the Middle East, and Africa (EMEA) reached USD 491 billion. EMEA recorded the fastest growth at 3%, supported by regulatory policies that allowed telecom providers to adjust prices in line with inflation. APAC (Asia-Pacific) remained the slowest-growing region at 1.4%, as gains from India were offset by weaker demand in China and Japan,” IDC noted.
“Taken together, 2025 reinforced the global telecom services market’s characteristic resilience, demonstrating an ability to sustain incremental growth even in an environment shaped by macroeconomic uncertainty, geopolitical tensions, and uneven regional dynamics,” said Kresimir Alic, research director, Worldwide Telecom Services at IDC.
The agency also found rising oil prices and continuing conflicts in Eastern Europe and the Middle East increasing operating costs for telecom providers worldwide. The trinity of higher energy prices, more expensive network equipment, and rising labour costs will keep sustained pressure on the industry players’ profit margins, while slowing down infrastructure investments over the next few years.
“Despite these challenges, telecom services will remain essential for businesses and consumers, helping the industry maintain stable demand even during economic uncertainty,” IDC noted.
The research firm also predicted LEO satellite broadband to be the telecom industry’s major growth driver over the medium term. Unlike traditional satellites positioned farther from Earth, LEO satellites operate closer to the planet, allowing faster internet speeds and lower latency.
“Direct-to-Device (D2D) technology could significantly change the mobile industry by enabling smartphones to connect directly to satellites without relying entirely on ground-based cellular towers. The shift is expected to push telecom operators toward hybrid terrestrial and satellite networks,” IDC remarked.
For countries such as the Philippines, where internet connectivity remains uneven across islands and rural areas, satellite broadband will play a crucial role in expanding access in locations that are difficult or expensive to serve through traditional fibre or mobile infrastructure.
“Satellite broadband will evolve from a niche service into a mainstream connectivity platform by the end of the decade, creating new revenue opportunities for telecom operators, satellite providers, and device manufacturers,” IDC concluded.