Worldwide spending on telecom and pay TV services reached $1.551 trillion in 2025, growing 2% year over year despite inflation, geopolitical tensions, and slower economic growth, according to market research firm International Data Corp. (IDC).
IDC expects spending to grow another 1.8% in 2026 to $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 $576 billion in telecom services revenue in 2025, while Asia Pacific (APAC) posted $484 billion and Europe, the Middle East, and Africa (EMEA) reached $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 remained the slowest-growing region at 1.4%, as gains from India were offset by weaker demand in China and Japan.
“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.
IDC said rising oil prices and continuing conflicts in Eastern Europe and the Middle East are increasing operating costs for telecom providers worldwide. Higher energy prices, more expensive network equipment, and rising labor costs are expected to pressure profit margins and slow infrastructure investments over the next few years.
Despite these challenges, IDC said telecom services remain essential for businesses and consumers, helping the industry maintain stable demand even during economic uncertainty.
The research firm identified LEO satellite broadband as a major growth driver for the telecom industry 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.
IDC said 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.
For countries such as the Philippines, where internet connectivity remains uneven across islands and rural areas, satellite broadband could help expand access in locations that are difficult or expensive to serve using traditional fiber or mobile infrastructure.
IDC said satellite broadband is expected to 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.