REDWOOD CITY, Calif. – April 09, 2018 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, worldwide capex is forecast to rise 2017 through 2020 despite flat carrier revenues. The most notable increases come from AT&T, Sprint, Megafon, Orange, Etisalat, and Deutsche Telekom.
“After three consecutive years of declining capex, short-term and near-term market expectations have shifted up,” said Stefan Pongratz, Senior Director at Dell’Oro Group. “Here in the US, we maintain the view that conditions are stabilizing and both capex and capital intensity will continue to trend upward. There are multiple factors that support our renewed optimism for capex in the US:
- We are seeing our first signs of US Federal tax reductions translating into increases in capex with a clear boost in AT&T’s 2018 capex projections.
- We see Sprint investing again
- FirstNet investments are set to commence in 2018
- Larger data plans are propelling capacity investments
And lastly, overall carrier revenue trends are stabilizing,” continued Pongratz.
The report also discusses further capex accelerating factors such as preparation for 5G and inhibiting factors such as the flat revenue trend. The report assumes operators will struggle to identify new revenue streams.
The Dell’Oro Group Carrier Economics Report provides in-depth coverage of more than 50 carriers’ revenue, capital expenditure, and capital intensity trends. The report provides actual and forecast details by carrier, by region by country (United States, Canada, China, India, Japan, and South Korea), and by technology (wireless/wireline). To purchase this report, please contact Matt Dear at +1.650.622.9400 x223 or email Matt@DellOro.com.
Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com