Dell'Oro: Worldwide telecom capex to decline in 2023Dell'Oro: Worldwide telecom capex to decline in 2023
Capex increased at a low-single digit rate year-over-year in nominal USD terms in 2022, down from the high-single digit growth in 2021. #pressrelease
April 4, 2023
REDWOOD CITY, Calif. – 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, preliminary readings suggest that worldwide telecom capex—the sum of wireless and wireline telecom carrier investments—increased at a low-single digit rate year-over-year in nominal USD terms in 2022, down from the high-single digit growth in 2021. This moderation in the capex growth rate was consistent with the aggregate telco equipment trends previously communicated regarding the six Dell'Oro telecom programs (Broadband Access, Microwave Transmission & Mobile Backhaul, Optical Transport, Mobile Core Network, Radio Access Network, Service Provider Routers & Switch).
Additional highlights from the March 2023 3-year Telecom Capex forecast report:
Looking back at the full year, total capex growth was slightly lower than the 3 percent increase we initially projected a year ago going into 2022, partly due to the stronger USD.
Global telecom capex projections have been revised upward to reflect the price of the USD and the improved capex outlook in China.
Global telecom capex is projected to decline at a 2 percent to 3 percent CAGR over the next 3 years, as positive growth in India will not be enough to offset sharp capex cuts in North America.
Capital intensity ratios are projected to improve and approach 16 percent by 2025, hinging crucially on the assumption that carrier revenues will remain flat and outperform capex.
Read the full press release here.
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