5G Drives Global Rise in Telecom Investment

The world’s 50 largest network operators combined for annual revenue and investments of more than $1.4 trillion in 2018, according to a new report from Dell’Oro Group. The firm estimates that the group of 50 carriers comprise about 80% of worldwide capex and revenue in the telecom sector. On the heels of three consecutive years of declining capex in telecom, Dell’Oro predicts capex growth will outpace revenue during the next three years as 5G deployments proliferate. Growth in telecom capex is expected to taper off after 2021, according to the firm’s projections. “While the relationship between capex [and revenue] will likely remain strong over time and constrained operator revenue growth will be one of the primary inhibitors of further telecom capex acceleration, we remain optimistic that there will be some deviation in the short-term to accommodate the rollout of 5G,” Stefan Pongratz, senior director at Dell’Oro Group, wrote in a prepared statement. “With the preliminary 5G capex guidance coming in stronger than expected, there is a lot of excitement right now about the potential 5G capex ramp,” he explained.