Global spending on telecommunications and pay-TV services will be nearly $1.6 trillion in 2022, representing a year-over-year increase of 1.9% as telecom operators increase tariffs, according to the International Data Corporation (IDC).
This is an increase from IDCs' prediction earlier in the years, with new estimates now suggesting that growth in total market value will be 0.5 percentage points higher as a result of global inflation (i.e., the increase in tariffs for telecommunication services).
Global inflationary and macroeconomic pressures that have started to threaten the profitability of telecom operators have seen them increase the tariffs for their services.
This is a common trend across all global regions and has caused similar changes in their respective revenue forecasts for 2022: the growth in the Americas was increased by 0.3 percentage points, in Asia/Pacific by 0.5 percentage points, and in EMEA by 0.9 percentage points.
The increase in EMEA comes mostly from Europe, a region that is witnessing higher-than-average inflation while struggling to find a replacement for cheap Russian energy.
Still, the fastest revenue growth this year is expected in the Asia/Pacific region, driven by the relatively lower saturation of the telco markets in less-developed countries.