Back in 2024, telecom and pay TV services spending in the Middle East and Africa (MEA) surged to $149 billion, marking a 7.7% increase, driven by network expansion, rising data demand, and strong telecom market consumer spending, according to IDC’s report.
The IDC report titled “Worldwide Semiannual Telecom Services Tracker” provides insights into telecom and pay TV services spending in the Middle East and Africa (MEA) region. IDC expects the momentum to continue, forecasting a 7.3% rise in 2025, bringing the total to nearly $160 billion. However, the report cautions that geopolitical developments in the region were not fully factored into the forecast.
Growth was fueled by major operator investments in underpenetrated markets, particularly in Africa, where cellular and fibre networks are expanding rapidly. This came alongside sustained demand for services, even as operators raised tariffs in high-inflation markets such as Türkiye, Egypt, Nigeria, Sudan, and Zimbabwe.
Fixed voice services continued to decline, with consumers shifting to mobile voice and data, aided by the growing popularity of over-the-top apps. In much of Africa, mobile phones have become the primary gateway to entertainment, banking, commerce, and information.
5G Expansion, Tech Transformation, and Geopolitical Risks
IDC’s latest forecast for MEA telecom market is slightly less bullish than its November 2024 outlook, with growth projections for 2025 reduced by 1.2 percentage points due to easing inflation and updated operator guidance.
“Telecom operators’ priorities are gradually shifting as they are transforming to reinvent themselves as ‘techcos’ with a focus on launching innovative services and solutions, improving process efficiencies, enhancing customer experiences and overcoming stifling competition,” IDC’s senior program manager for data and analytics in the region, said Krishna Chinta.
Operators are modernizing IT systems, virtualizing networks, deploying cloud-native platforms, investing in edge computing, and embedding AI to improve performance. Most Gulf states and parts of the wider MEA region have already rolled out 5G, while others are expected to follow in the next five years alongside investments in fibre and low Earth orbit satellite services.
Geopolitics remain a potential disruptor. The region’s sensitivity to oil prices and trade tensions could affect telecom rollouts, especially following new US trade tariffs.
“Tariffs on telecommunications equipment might lead to increased costs for telecom operators, potentially delaying 5G rollouts and AI projects,” warned IDC’s vice president of worldwide telecoms data and analytics, Mark Walker.
While the direct impact on the telecom sector may be minimal, Walker noted indirect risks from a weakening business environment and reduced consumer purchasing power.
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