Sluggish revenue growth seen in Telecom sector until 2028: report

Operators are struggling to increase subscriber numbers and maintain pricing power.

Singapore’s telecom sector is facing slow revenue growth, with projections indicating a compound annual growth rate (CAGR) of just 0-6% through 2028, according to PwC.

In its report, PwC said with mobile penetration already at near-saturation levels and intense competition in the broadband market, operators are struggling to increase subscriber numbers and maintain pricing power.

Despite sluggish growth, Singapore remains at the forefront of 5G adoption. Operators have made significant investments in expanding their 5G networks, but monetisation remains a challenge.

Businesses are exploring private 5G networks for industries, such as manufacturing, logistics, and port operations. Meanwhile, Fixed Wireless Access (FWA) is being positioned as an alternative broadband solution in specific areas, though fiber remains the dominant technology for high-speed internet access.

Artificial intelligence is becoming a key tool for telecom operators looking to cut costs and improve efficiency. AI-driven automation is being used in customer service, network management, and predictive maintenance.

PwC noted Singapore’s telcos are also leveraging AI to enhance fraud detection, data analytics, and operational decision-making.

The city-state continues to lead in cellular IoT adoption, particularly in smart city applications. Telecom operators are playing a crucial role in enabling connected infrastructure, from real-time transportation monitoring to advanced energy grid management.

Enterprise solutions are also driving IoT growth, with applications in maritime logistics, industrial automation, and urban mobility.

Investment in digital infrastructure remains strong, with a focus on high-speed fiber expansion. Whilst 5G is growing rapidly, it is seen as a complement rather than a replacement for fiber connectivity.

Singapore’s telecom sector is expected to maintain steady infrastructure investments to support future demand for ultra-fast and low-latency services.

As the industry navigates these challenges, telecom players are looking beyond traditional services, embracing AI, IoT, and next-generation connectivity solutions to unlock new revenue streams.

With a strong digital ecosystem and government support for technological innovation, PwC said Singapore is poised to remain a leader in telecom advancements, even as growth slows in core services.