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A forecast: Global telecom capital spending will decline in 2023
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Author : JIUZHOU
Update time : 2023-04-07 15:03:49
A group predicts that in the next three years, global telecom capital expenditures are expected to decline at a compound annual growth rate of 2%-3%, because India's positive growth is not enough to offset the sharp cuts in North American capital expenditures.
According to a newly released report by a group, preliminary data show that global telecom capital spending in 2022 -- the sum of investment by wireless and wireline telecom operators -- will grow at a low-single-digit year-on-year rate in nominal dollars, down from 2021. High single-digit growth for the year. This slowdown in capex growth is consistent with trends across the group's overall telecom equipment market, which includes broadband access, microwave transport and mobile backhaul, optical transport, mobile core, radio access network, service provider routers and switches.
“The relationship between capex for service providers and telecom equipment is not an exact match, in part because equipment only accounts for about one-third of capex. Even with the inherent wiggle room , which is an important indicator to consider in short-term forecasts. At the same time, this is not the only input, since the equipment market is expected to grow by 1% in 2023, while telecom capital expenditure is expected to decline, it can be inferred that a certain group's analyst team is Modeling some small decoupling in the short term."
Additional highlights from the Telecom Capex Three-Year Forecast report, March 2023:
1. Looking back to 2022, total capex is slightly lower than the 3% growth originally forecast a year ago, partly due to a stronger U.S. dollar.
2. The global telecom capex forecast has been revised upwards to reflect changes in US dollar prices and an improved outlook for China capex.
3. Global telecom capex is expected to decline at a CAGR of 2%-3% over the next three years, as India's positive growth is not enough to offset the sharp cuts in North American capex.
4. Capital intensity is expected to rise, approaching 16% by 2025, the key is that operator revenue will remain flat and grow faster than capital expenditure.
According to a newly released report by a group, preliminary data show that global telecom capital spending in 2022 -- the sum of investment by wireless and wireline telecom operators -- will grow at a low-single-digit year-on-year rate in nominal dollars, down from 2021. High single-digit growth for the year. This slowdown in capex growth is consistent with trends across the group's overall telecom equipment market, which includes broadband access, microwave transport and mobile backhaul, optical transport, mobile core, radio access network, service provider routers and switches.
“The relationship between capex for service providers and telecom equipment is not an exact match, in part because equipment only accounts for about one-third of capex. Even with the inherent wiggle room , which is an important indicator to consider in short-term forecasts. At the same time, this is not the only input, since the equipment market is expected to grow by 1% in 2023, while telecom capital expenditure is expected to decline, it can be inferred that a certain group's analyst team is Modeling some small decoupling in the short term."
Additional highlights from the Telecom Capex Three-Year Forecast report, March 2023:
1. Looking back to 2022, total capex is slightly lower than the 3% growth originally forecast a year ago, partly due to a stronger U.S. dollar.
2. The global telecom capex forecast has been revised upwards to reflect changes in US dollar prices and an improved outlook for China capex.
3. Global telecom capex is expected to decline at a CAGR of 2%-3% over the next three years, as India's positive growth is not enough to offset the sharp cuts in North American capex.
4. Capital intensity is expected to rise, approaching 16% by 2025, the key is that operator revenue will remain flat and grow faster than capital expenditure.
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