Dell’Oro Group reports global Telecom CapEx decline

April 2, 2024
CapEx shrank in 2023, a trend that Dell’Oro predicts will continue as operators scale back on 5G.

Dell’Oro Group’s recently published “March 2024 Telecom Capex report” indicates that telecom operators are scaling back investments in 5G, which the group says is consistent with the aggregate telco equipment slump.

The report reveals a decline in global telecom CapEx for the full year of 2023—the first contraction since 2017—and forecasts a worldwide CapEx decline at a mid-single-digit rate in 2024. The report also shows that, over the next three years, global carrier revenues are expected to increase at a 1 percent CAGR.

Stefan Pongratz, Dell’Oro Group vice president and analyst, said in a press release, “The fundamental challenges have not changed. Operators have a fixed capital intensity budget, and CapEx is largely constrained by the revenue trajectory. What is complicating the situation is that the revenue pie remains fixed. Following some positive developments amidst the peak of the COVID-19 pandemic, our analysis shows that operator revenue growth slowed in 2023 and has more or less remained stagnant over the past decade. And based on the guidance, operators, in general, are not overly optimistic that emerging opportunities with generative AI, edge computing, enterprise 5G, FWA, and 5G-Advanced will expand the pie.”

For related articles, visit the 5G Mobile Topic Center.

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.

To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.

Sponsored Recommendations

Scaling Moore’s Law and The Role of Integrated Photonics

April 8, 2024
Intel presents its perspective on how photonic integration can enable similar performance scaling as Moore’s Law for package I/O with higher data throughput and lower energy consumption...

Coherent Routing and Optical Transport – Getting Under the Covers

April 11, 2024
Join us as we delve into the symbiotic relationship between IPoDWDM and cutting-edge optical transport innovations, revolutionizing the landscape of data transmission.

Supporting 5G with Fiber

April 12, 2023
Network operators continue their 5G coverage expansion – which means they also continue to roll out fiber to support such initiatives. The articles in this Lightwave On ...

From 100G to 1.6T: Navigating Timing in the New Era of High-Speed Optical Networks

Feb. 19, 2024
Discover the dynamic landscape of hyperscale data centers as they embrace accelerated AI/ML growth, propelling a transition from 100G to 400G and even 800G optical connectivity...