The latest findings from Dell’Oro Group highlight a telecom industry navigating stability, efficiency, and transformation as operators balance near-term caution with long-term ambitions driven by AI and cloud technologies. Here are 10 key facts defining the global telecom capex.
Stefan Pongratz, Vice President at Dell’Oro Group, said: “Telecom operators remain optimistic about the long-term network vision, particularly as AI drives new demand, but in the short term they are taking a more cautious stance, with many planning to moderate Capex.”
1. Telecom Capex Remained Flat in 2025
Global telecom investments showed no growth in 2025, with capital expenditure across around 50 major service providers – representing nearly 80 percent of worldwide spending – remaining flat in nominal USD terms.
2. Industry Enters a Phase of Spending Discipline
The flat capex trend signals a strategic pause as operators shift focus from aggressive expansion to optimizing existing infrastructure and improving returns.
3. Capex and Equipment Revenue Relationship Stayed Stable
Spending patterns across key segments such as Broadband Access, Optical Transport, Mobile Core Network, Radio Access Network, and routers and switches maintained a stable correlation between operator investments and vendor revenues.
4. Equipment Revenue Grew 4 Percent Year-over-Year
Despite flat capex, telecom equipment manufacturers recorded a 4 percent increase in revenue in 2025, indicating resilient demand for network technologies.
5. Cloud Providers Drove Nearly Half of Equipment Growth
Hyperscale cloud companies played a critical role, contributing around 50 percent of the total growth in telecom equipment revenue, reinforcing their expanding influence in network infrastructure.
6. Operators Show Long-Term Optimism with Short-Term Caution
According to Dell’Oro Group, telecom operators remain confident about future network demand, especially with AI-driven use cases, but are currently moderating spending due to limited near-term visibility.
7. Telecom Capex Expected to Decline in 2026
Global telecom capex is forecast to drop by 2 percent in 2026, reflecting continued cautious investment strategies across major markets.
8. Modest Growth Outlook Through 2030
From 2026 to 2030, telecom investments are projected to grow at a slow 1 percent compound annual growth rate, indicating a more mature and controlled spending cycle.
9. Capex-to-Revenue Ratio to Reach 14 Percent
With carrier revenues expected to grow at around 2 percent CAGR, the capex-to-revenue ratio is projected to approach 14 percent by 2029, highlighting improved capital efficiency.
10. Wireless Capital Intensity Declines Post-5G Peak
Wireless investment intensity is set to fall to approximately 11 percent by 2029, down seven percentage points from peak 5G levels, signaling a shift from network buildout to monetization and service innovation.
Strategic Outlook: AI and Cloud Reshape Telecom Investments
The telecom industry is transitioning from heavy infrastructure spending to a more strategic investment model centered on AI, cloud integration, and operational efficiency. While short-term capex growth remains constrained, long-term opportunities tied to intelligent networks and digital services continue to drive optimism across the sector.
BABURAJAN KIZHAKEDATH