- Capex and equipment spend slid in 2024
- The downturn affected both wireless and wireline investments
- The decline comes as many large-scale fiber and 5G deployments taper off
Global telecom capital expenditures took a hit in 2024, with a sharp 8% decline, according to new findings from Dell’Oro Group. The downturn affected both wireless and wireline investments, with telecom equipment revenues across six key segments also falling 11% year-over-year.
The decline comes as many large-scale fiber and 5G deployments taper off, pushing operators into a more cautious investment phase. According to Stefan Pongratz, VP of RAN and Telecom Capex research at Dell’Oro, the post-buildout environment is revealing divergent strategies among operators.
Shifting Investment Strategies
“Some operators see continued high capital intensity as essential to prepare for the next tech wave,” Pongratz noted. “But most are now prioritizing efficiency improvements over expansion, reflecting a more conservative risk appetite.”
While some carriers remain growth-focused, the majority are settling into a cost-optimization phase, especially as revenues remain relatively flat.
Forecast: Modest growth, lower capital intensity
- Carrier capex is expected to decline at a 2% CAGR through 2027.
- Carrier revenues are projected to grow modestly at +1% CAGR.
- Capex-to-revenue ratios will likely drop from 16% in 2024 to 14% by 2027.
- Wireless capital intensity is forecasted to land between 12–13%, down 5–6 points from the 5G buildout peak.
Outlook for 2025 and beyond
Investment conditions are expected to stabilize in 2025, but challenges remain. The near-term outlook is cautious, as carriers weigh infrastructure upgrades against constrained revenue growth.
Dell’Oro’s Telecom Capex Report covers over 50 operators across the globe and provides detailed insights into capex, revenues, and intensity trends by carrier, region, and technology.
Ed. Note: This article was written with the help of GenAI.