Global Telecom Capex Dips 8% in 2024 Amid Shift in Investment Strategy

Globally telecom operators cut their capital expenditure by 8% during 2024 because they moved their priorities from network growth to operational efficiency according to Dell’Oro Group data.

Worldwide telecom operators decreased their wireless and wireline infrastructure investments throughout 2024 based on data from Dell’Oro Group’s latest Telecom Capex report. The sector-wide estimate shows telecom network capital expenditure decreased by 8% together with a 11% decrease in telecom equipment revenues because operators adopted restrained approaches after major 5G and fiber network deployments.

According to Stefan Pongratz who serves as the RAN and Telecom Capex Research Vice President at Dell’Oro operators have started changing their investment approach. He stated that telecom providers conduct efficiency-focused investments instead of maintaining tech-race aggressive spending divisions.

A difficult financial situation exists in 2024 yet investment conditions are predicted to recover in 2025. The telecommunication industry foresees a reduction in capital expenditure at a 2% CAGR rate throughout the subsequent three-year period. Telecom operators plan to decrease their yearly capital expenditure ration to 14% by 2027 when measured against revenue.

Telecom wireless infrastructure investments will see a drastic fall to 12–13% by 2027 compared to their 5G peak level. The post-5G era requires telecom companies to operate from an expansion phase into optimization focused on cost management while developing long-term operational efficiency.