Trends

Global telecom capex dips 8% in 2024

What happened: Capex cutback reflects shift from growth to efficiency in telecoms Telecom operators worldwide reduced capital expenditures by 8% in 2024, according to preliminary data from analyst firm Dell’Oro Group. This downturn marks a significant cooling-off period following the conclusion of m…

AuthorJoyceDong

Reading Time2 min

PublishedApril 11, 2025

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Headline

Context

Telecom operators worldwide reduced capital expenditures by 8% in 2024, according to preliminary data from analyst firm Dell’Oro Group . This downturn marks a significant cooling-off period following the conclusion of major 5G and fibre infrastructure investments. The report, which defines global telecom capex as the combined investment in wireless, wireline, and other telecom carrier infrastructure, signals a strategic pivot by the majority of operators towards risk-aversion and cost-efficiency. The findings suggest that static revenue growth and an uncertain industry outlook have led operators to reassess aggressive investment strategies. Stefan Pongratz , Vice President and Analyst at Dell’Oro, noted the contrasting risk appetites across the telecom landscape. While a minority of operators continue to invest heavily in anticipation of future technological shifts, most are opting for conservative capex plans, assuming that market size will remain largely unchanged.

Evidence

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Analysis

Despite these contractions, Dell’Oro surprisingly projects a stabilisation in 2025. However, this outlook could be challenged by global economic headwinds, particularly escalating tensions around trade policies. The ongoing U.S. trade war has introduced further unpredictability, with recent tariffs on network equipment likely to raise costs and discourage new investment. In a related blog post, Jimmy Yu of Dell’Oro highlighted how these tariffs could accelerate the trend towards separating hardware and software components in telecom infrastructure, as firms look to avoid systemic cost increases. With negotiations still unfolding, the industry remains in a holding pattern, awaiting clarity on long-term trade relations and policy direction. Also read: India’s 5G users reach 250 million Also read: Bharti Airtel partners with Ericsson and Nokia for enterprise 5G The decline in telecom operator capex by 8% in 2024 highlights a major transition in how carriers approach infrastructure investment. The conclusion of early 5G rollouts and large-scale fibre deployments has left many operators reconsidering the need for continued high capital intensity, particularly when revenue growth remains flat. This strategic shift toward operational efficiency over expansion could affect how quickly new technologies—such as 6G or edge computing—are adopted.