Spending on communications services in the Middle East and Africa (MEA) reached $149 billion in 2024, marking a 7.7 percent growth — well above the global average of 2.2 percent, according to IDC data.
This momentum is expected to continue in 2025, with telecom and pay TV services projected to grow by 7.3 percent to $159.9 billion.
The MEA region led global post-COVID telecom recovery in 2024, largely fueled by infrastructure investments aimed at expanding network coverage, especially in underserved African markets. Demand for mobile data services remains strong, even as operators implement tariff hikes to manage inflationary pressures, particularly in high-inflation countries like Türkiye, Egypt, Nigeria, Sudan, and Zimbabwe.
Consumer behavior continues to shift from fixed voice to mobile voice and data, with over-the-top (OTT) services playing a critical role in markets where mobile phones are the primary gateway to the internet. While this transition supports mobile service revenues, it places further pressure on legacy fixed-line services, IDC’s Ivana Slaharova said.
IDC’s latest forecast is slightly less bullish than previous estimates, reflecting tempered inflation in select markets and updated projections by key telecom operators.
Operators in the MEA region are increasingly rebranding themselves as technology companies, or “techcos,” aiming to diversify their offerings through digital transformation, AI integration, cloud-native platforms, edge computing, and 5G and fiber deployment. While 5G is already active in Gulf countries, broader MEA adoption is expected over the next five years alongside growth in fiber and LEO satellite services.
Operator investments
Telecom operators in the Middle East and Africa (MEA) are ramping up investments to expand network coverage, drive digital transformation, and support the rollout of 5G and fiber services.
In the Gulf region, e& (formerly Etisalat) continues to lead with substantial capital spending focused on 5G infrastructure, digital services, and international expansion, including strategic investments in technology and media sectors.
stc Group in Saudi Arabia is heavily investing in network modernization, 5G expansion, and data center infrastructure, supported by Vision 2030 initiatives.
Ooredoo, operating across several MEA markets, is prioritizing digital innovation, cloud services, and upgrades to mobile networks in countries like Qatar, Oman, and Algeria.
Zain Group is advancing its 5G network in key markets such as Kuwait and Saudi Arabia, while also focusing on fintech and data monetization initiatives.
In Africa, MTN Group is making strong investments in rural connectivity, 5G pilots, and fintech services, particularly in South Africa and Nigeria.
Vodacom is expanding its fiber and mobile broadband offerings, supported by its partnership with Safaricom and the acquisition of Vodafone Egypt.
Orange is enhancing its footprint in North and West Africa through investments in mobile and fixed networks, while also growing its digital banking and enterprise services.
These operators are increasingly partnering with global tech firms and cloud providers to strengthen their service portfolios and address growing demand for digital and enterprise connectivity in the MEA region.
However, several risks loom. Geopolitical uncertainties, trade tensions, and U.S.-imposed telecom equipment tariffs could drive up costs and delay infrastructure rollouts, including 5G and AI projects. These headwinds may indirectly affect telecom service spending by dampening broader economic conditions and consumer purchasing power, although the direct impact on service revenues remains limited at this stage.
Baburajan Kizhakedath
