According to a recently published report from Dell’Oro Group, worldwide telecom capex is forecast to rise 2017 through 2020. Significant increases are expected at AT&T, Sprint, Megafon, Orange, Etisalat, and Deutsche Telekom.
“After three consecutive years of declining capex, short-term and near-term market expectations have shifted up,” said Stefan Pongratz, Senior Director at Dell’Oro Group.
In the US, catalysts for the investment are the US Federal tax reductions; Sprint resuming investing; FirstNet, the nationwide public safety broadband network initial investments; and data network expansions. Worldwide, carriers are preparing their networks for 5G wireless network deployments.
Personally, I am holding off on breaking out the champagne until we see the capex increases materializing.
Information on FirstNet is at https://www.firstnet.gov/
Details on Dell’Oro’s report are available at http://www.delloro.com/news/worldwide-capex-forecast-rise-2017-2020-despite-flat-carrier-revenues-according-delloro-group