Telecom capex could grow 10% in 2021: Dell'Oro
Worldwide telecom capex increased 3% year-over-year in the first half of this year, setting up a full-year growth rate of 5% to 10% in 2021, Dell’Oro states in a new report. The market research firm reveals in its September 2021 3-year Telecom Capex Forecast that it has revised its telecom capex projections upward, with a new expectation that this year’s strong growth will set up a 3% CAGR between 2020 and 2023 for carrier capex.
"Even with some decoupling taking place between capex and equipment revenue growth trends in the first half, we expect the relationship to remain significant going forward," said Stefan Pongratz, vice president with the Dell'Oro Group. "More importantly, healthy end-user fundamental combined with the competitive dynamics and improving carrier revenue trends is spurring operators to ramp investments in multiple technologies and regions."
An improving outlook for U.S. wireless network investment primarily underpins Dell’Oro’s optimism. In the short term, even with the elevated 5G BTS baseline in China, total capex remains on track to advance at a double-digit rate this year. Dell’Oro’s belief here is predicated on the assumption that the second half will account for 60% to 65% of the full-year capex in China.
Dell'Oro’s Telecom Capex Report covers more than 50 telecom operators and highlights carrier revenue, capital expenditure, and capital intensity trends. The report provides actual and 3-year forecast details by carrier, by region by country (United States, Canada, China, India, Japan, and South Korea), and by technology (wireless/wireline).
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About the Author
Stephen Hardy
Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
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