IDC: Telecom spending reaches $1.551 trillion in 2025
According to IDC, worldwide spending on telecom and pay TV services reached $1.551 trillion in 2025, growing 2% year over year, with projections for a 1.8% increase in 2026 to $1.58 trillion. This growth is partly attributed to the expansion of Low Earth Orbit (LEO) satellite broadband services, which are expected to improve internet access in underserved areas. The report highlights that rising operational costs due to inflation and geopolitical events are pressing profit margins and may slow infrastructure investments.
Key Takeaways
- Americas generated $576 billion in telecom services revenue in 2025, ahead of APAC at $484 billion and EMEA at $491 billion.
- EMEA posted the fastest regional growth at 3%, supported by policies that let providers raise prices with inflation.
- APAC grew 1.4%, with gains in India offset by weaker demand in China and Japan.
- IDC says LEO satellite broadband could improve internet access in underserved areas, including remote communities in the Philippines.
- IDC says Direct-to-Device (D2D) technology may allow smartphones to connect directly to satellites without relying entirely on ground-based cellular towers.
Why It Matters
Telecom and pay TV spending is still growing, but only modestly: 2% in 2025 and an expected 1.8% in 2026. That matters because IDC ties the upside to LEO satellite broadband and D2D connectivity, while also warning that oil prices, higher energy costs, equipment prices, and labor costs are squeezing margins and slowing infrastructure investment. The regional split is also telling: EMEA led growth at 3%, while APAC lagged at 1.4%. Watch IDC’s next regional revenue readout and any update on satellite broadband moving from niche service toward mainstream connectivity by decade’s end.
Read full article at backendnews.net
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