Sam-il PwC "Telecom Industry, B2B is Top Priority for Growth"

Global Telecommunications Market Outlook Report Released
Strategies for Revenue Generation Amid Low Growth

As the global telecommunications market continues to experience low growth, the telecommunications industry is urged to innovate consumer (B2C) services through artificial intelligence (AI) and seek additional growth drivers in the enterprise (B2B) market.

On the 14th, Samil PwC announced the release of a report titled "Global Telecommunications Market Outlook" containing these insights. This report was prepared based on an analysis and forecast of the global telecommunications industry conducted by the global accounting and consulting group PricewaterhouseCoopers (PwC) under the theme "New Strategies for Growth."

According to the report, the global telecommunications market is expected to grow at an average annual rate of 2.9% until 2028. This figure is lower than the anticipated inflation rate. The report analyzed this by stating, "This reflects the fundamental challenge of the telecommunications industry, where core products and services are treated as interchangeable commodities without differentiated characteristics, making price increases difficult, while continuous investment in infrastructure remains necessary." PwC found that fixed telecommunications services (fixed broadband and landline phones) have become commoditized or are on the verge of commoditization in 34% of countries surveyed.

The report outlined priorities for creating new value in the telecommunications industry. First, it emphasized reducing costs in the consumer (B2C) business segment through AI and improving customer experience via personalization. A representative example is the U.S. telecom company AT&T, which introduced a generative AI platform to shorten software development time by approximately 10-30% and reduce call times with customer service representatives, thereby enhancing both workforce productivity and operational efficiency through AI.

Additionally, the report urged prioritizing the enterprise (B2B) market as the top growth area. To this end, it proposed vertical strategies including Internet of Things (IoT) services, customized infrastructure and security solutions, and dedicated 5G networks in industries such as manufacturing, energy, mining, and defense. It also suggested horizontal approaches such as simplifying and standardizing application programming interfaces (APIs).

Meanwhile, the report forecasted that the share of 5G among total mobile subscribers will increase more than threefold from 18.8% in 2023 to 64.1% in 2028, establishing 5G as the global mobile standard starting next year. Consequently, fixed wireless access (FWA) broadband services are expected to grow at an average annual rate of 18.3% until 2028, becoming the fastest-growing broadband technology. FWA refers to wireless communication technology that connects fixed subscriber terminals and base stations wirelessly. The report also anticipated growth in cellular IoT services that utilize mobile networks across all regions. In particular, IoT services in the transportation and automotive sectors are expected to grow rapidly, and cellular IoT usage will be actively implemented in manufacturing sites that reorganize workspaces, such as mining, oil and gas, and ports.

The report stated, "The telecommunications industry is under constant pressure to invest in infrastructure," and noted, "Recently, the momentum for capital expenditure is shifting toward building fiber optic networks for the fixed telecommunications sector."

Han Hoseong, Telecommunications Industry Leader (Partner) at Samil PwC, said, "Even in industries with relatively low growth rates, there are always niche markets to expand and opportunities for companies to improve profitability," adding, "We hope this report will help telecommunications companies explore ways to create new value."