Worldwide telecom capex, the sum of wireless and wireline/other telecom carrier investments, declined 10 percent YoY in H1 2024, partly due to built-up inventory, weaker demand in China, India, and US, challenging 5G comparisons, excess capacity, and elevated uncertainty.
“The high-level message is clear. The flattish revenue trajectory and the difficulties with monetizing new technologies and opportunities are impacting the risk appetite and willingness to raise the 
capital intensity levels for extended periods,” says Dell’Oro vp Stefan Pongratz, “in addition, the reduced gap between advanced and less advanced regions, when it comes to adopting new technologies, is impacting the investment intensity on the way up and down.”
Global carrier revenues are expected to increase at a 1 percent CAGR over the next 3 years.
Worldwide telecom capex is projected to decline at a mid-single-digit rate in 2024 and at a negative 2 percent CAGR by 2026.
The mix between wireless and wireline remains largely unchanged, reflecting challenging times still ahead for wireless. Wireless-related capex will decline at a 3 percent CAGR by 2026.
Capital intensity ratios are modeled to approach 15 percent by 2026, down from 17 percent in 2023.
