Dell’Oro stated the newest information reinforces the view that whereas telecom capex has peaked, it isn’t collapsing
In sum – what to know:
Capex stabilizes in Q2 – After two years of reductions, world telecom spending leveled off, easing fears of a steep downturn.
Shift in spending priorities – Operators are transferring funding towards capability, high quality, automation, and power efficiency as an alternative of broad protection builds.
Capital depth tendencies down – By 2029, telecom capex-to-revenue ratios are projected at 15%, with wi-fi depth at 12–13%, reflecting post-5G normalization.
International telecom capital expenditures stabilized within the second quarter of 2025 after two years of reductions, based on a brand new report from Dell’Oro Group.
The agency stated the newest information reinforces the view that whereas capex has peaked, it isn’t collapsing.
“Capex is previous the height, however it isn’t falling off a cliff,” stated Stefan Pongratz, vp of RAN and telecom capex analysis at Dell’Oro Group. “Operators are shifting spending priorities from blanket protection towards capability, high quality, automation, and power effectivity. After 4 years of climbing capex-to-revenue ratios, the metric dropped considerably in 2024 from its 2022 excessive. It’s anticipated to stay steady via 2025, ease barely thereafter, and edge increased once more towards the top of the last decade.”
The Dell’Oro report notes that whereas Q2 confirmed stabilization, whole first-half 2025 capex was nonetheless down year-over-year as a consequence of steep Q1 declines. General, the funding surroundings is anticipated to stay difficult for each capex and telecom tools revenues, it added.
By 2029, capex-to-revenue ratios are projected to method 15%, about three factors decrease than the 2022 peak. Wi-fi capital depth is forecast to achieve 12–13% by 2029, down 5 to 6 factors from the 5G rollout highs.
Dell’Oro beforehand reported that the worldwide cellular core community (MCN) market skilled a robust enlargement within the second quarter of 2025, rising 19% year-over-year.
The report famous that the expansion was led by a 31% surge within the 5G cellular core community (MCN) section, whereas the voice core section surged 18%.
The Dell’Oro report additionally highlighted that the multi-access edge computing (MEC), a part of the 5G packet core, rose 32% year-and-year and is forecast to climb 44% for full-year 2025.
The worldwide 5G cellular core community market is projected to develop at a 6% compound annual development charge (CAGR) from 2024 to 2029, based on a earlier report by Dell’Oro Group. The acceleration is essentially attributed to the rising adoption of 5G SA structure.
