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title: Energy costs to drive telecom price rises as global services revenue reaches $1.6tn - Developing Telecoms
description: Worldwide spending on telecoms and pay-TV services is forecast to reach US$1.585 trillion in 2026, up 2.3% year on year, according to IDC. The latest forecast is 0.5 percentage points higher than the previous estimate.
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date: 2026-11-09T12:05:55Z
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Worldwide spending on telecoms and pay-TV services is forecast to reach US$1.585 trillion in 2026, up 2.3% year on year, due to inflation and rise in energy costs, according to IDC.

The latest forecast is 0.5 percentage points higher than the previous estimate. The Americas will remain the largest regional market, with revenue forecast to rise 2.53% from US$575.3 billion in 2025 to US$589.9 billion in 2026. EMEA is expected to grow 2.94%, from US$489.8 billion to US$504.2 billion, while Asia/Pacific will record the slowest growth at 1.37%, reaching US$491.5 billion from US$484.8 billion.

IDC said inflation and elevated energy prices, partly driven by conflicts in the Middle East and Ukraine, will prompt operators to raise tariffs. Regulation is likely to delay the full impact of these increases until later in 2026 and into 2027.

However, IDC warned that the growth is nominal, with the market contracting in real terms after inflation. Operators in Europe and North America are better positioned to pass on higher costs, while customers in Africa and parts of Asia/Pacific may downgrade services or switch providers, limiting revenue growth.

Mobile data and machine-to-machine services will help offset declining voice and messaging revenue, while fixed broadband data spending is also expected to increase. Fixed voice and pay-TV services will continue to decline.

IDC expects low Earth orbit satellite broadband to remain concentrated among a small number of providers, including Starlink and Amazon Leo, serving rural and remote areas and enterprise customers. Direct-to-device satellite services delivered through mobile operator partnerships have greater potential, as operators can extend coverage while retaining the customer relationship.

“The future of connectivity will not be defined by the choice between the ground and the sky, but by how seamlessly the two work together,” said Kresimir Alic, research director for worldwide telecom services at IDC.

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