Partly due to built-up inventory, weaker demand in China, India, and US, challenging 5G comparisons, excess capacity, and elevated uncertainty. #pressrelease
October 1, 2024
According to a recently published report from Dell'Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, telecom operators are now scaling back their investments in 5G and fixed broadband technologies. Preliminary findings show that the more challenging conditions that shaped the second half of 2023 extended into the first half of 2024. Worldwide telecom capex, the sum of wireless and wireline/other telecom carrier investments, declined 10 percent year-over-year (YoY) in the first half of 2024, partly due to built-up inventory, weaker demand in China, India, and US, challenging 5G comparisons, excess capacity, and elevated uncertainty.
Additional highlights from the September 2024 Telecom Capex report:
Global carrier revenues are expected to increase at a 1 percent CAGR over the next 3 years.
Worldwide telecom capex is projected to decline at a mid-single-digit rate in 2024 and at a negative 2 percent CAGR by 2026.
The mix between wireless and wireline remains largely unchanged, reflecting challenging times still ahead for wireless. Wireless-related capex will decline at a 3 percent CAGR by 2026.
Capital intensity ratios are modeled to approach 15 percent by 2026, down from 17 percent in 2023.
Read the full press release here.
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