#USA #Redwood City #Dell'Oro Group #Telecom Capex #5G Investments

Global Telecom Capital Expenditure Up in 2026

In a recent report by Dell'Oro Group, a recognized authority in market insights across the telecommunications sector, it was revealed that global telecom capital expenditure (capex) experienced a noteworthy increase of approximately 5% in the first half of 2026 compared to the previous year. This upturn is significant as it comes after several years of reduced investment levels and suggests a shift towards a more optimistic outlook for the industry.

The robust start to the year stands in contrast to earlier expectations, fulfilling a need for revitalization in an industry that has faced challenges stemming from fluctuating technological demands and economic conditions. The report highlights that manufacturers involved in telecom equipment also saw a similar trend, with revenues from various telecommunications programs—including broadband access and mobile core networks—growing by around 5% year-on-year within the same timeframe.

Stefan Pongratz, Vice President at Dell'Oro Group, expressed some restrained optimism regarding the current trajectory. He stated, "While the first half of 2026 exceeded our expectations, it does little to alter the long-term capex landscape. Following hefty investments in 5G and fiber infrastructure, operators are now improving their capacity, with a noticeable shift in focus towards modernization, automation, and overall network efficiency. Additionally, enhancing operator revenues are helping to lower capital intensity ratios, despite investments remaining steady."

Key Insights from the Report

Despite the promising start to 2026, Dell'Oro Group has maintained its cautious stance regarding the long-term forecast for telecom capex. The anticipated growth for global telecom capex is projected to be only between 0% to 1% CAGR from 2025 to 2030. This slower growth is indicative of a maturing investment environment, particularly following the major cycles of 5G and fiber deployment.

Capital intensity peaked at 18% in 2022 but is estimated to drop to approximately 14% by 2028. This decline is expected to occur before any modest increases as emerging investment in 6G technology begins. It’s also essential to note that telecom equipment revenues are forecasted to grow 2% to 3% CAGR during the same period. This growth outpaces the capital expenditures of Communication Service Providers (CSPs), driven in part by increasing demands from cloud service providers.

Comprehensive Analysis

Dell'Oro's Telecom Capex Report is comprehensive, analyzing over 50 telecom operators and providing insights into carrier revenue, capital expenditure, and capital intensity trends. The report breaks down actual and projected data across various regions, countries—like the USA, Canada, China, India, Japan, and South Korea—and by technology (wireless and wireline). Interested parties can obtain this report by contacting Dell'Oro Group directly.

About Dell'Oro Group

Dell'Oro Group has established itself as a leading market research firm that specializes in strategic competitive analysis across the telecommunications spectrum, including enterprise networks, security, and data center infrastructure. Their work is crucial for supporting data-driven business decisions in an ever-evolving market. For further details, businesses may reach out to them at +1.650.622.9400 or visit their website at www.delloro.com.