Dell’Oro Group Projects Telecom CAPEX Stabilization

The latest report from Dell'Oro Group indicates stability in global Telecom capital expenditures (Capital Expenditure (CAPEX)) after a recent period of reductions, which may inform investment strategies for IT leaders.

Capital Intensity Projections

According to the research, global Telecom Capital Expenditure (CAPEX) was stable year-over-year in the second quarter of 2025. This follows notable declines in previous quarters, suggesting a period of normalization in spending trends.

Stefan Pongratz, Vice President of Radio Access Network (RAN) and Telecom CAPEX research at Dell’Oro Group, noted, “Capex is past the peak, but it is not falling off a cliff.” He emphasized that operators are now focusing more on improving capital intensity by reallocating resources from extensive coverage projects to enhancing capacity, quality, automation, and energy efficiency.

2025 and Beyond Outlook

The report expects capital intensity to approach 15 percent by 2029, which reflects a decrease from previous peaks. This is due to a more favorable revenue forecast compared to CAPEX, suggesting adjustments in how spending aligns with income generation.

Despite improvements in the second quarter, CAPEX for the first half of 2025 showed a year-over-year decline. Investment conditions are anticipated to stabilize in 2025, although revenue from telecom equipment is still expected to face challenges.

Wireless Sector Projections

In the wireless sector, capital intensity is projected to decline to between 12 and 13 percent by 2029, a drop of five to six percentage points from the 5G peak. This trend indicates a shift in investment strategies as companies navigate the evolving market landscape.

Key Insights from the Report

The current findings reflect in-depth analysis across multiple telecom operators. Dell’Oro Group's report provides crucial details on carrier revenue and CAPEX trends, which can assist enterprises in making informed financial decisions.

Conclusion

The report from Dell'Oro Group outlines a stabilizing trend in telecommunications CAPEX, indicating potential shifts in investment priorities. This summary reflects a timely analysis relevant for decision-makers in the industry.