The end of big capex opens up new service opportunities for telecoms operators

Telecoms capex is expected to decline until at least 2030, both in absolute terms and as a percentage of revenue. This should increase operator profitability. The higher levels of profit may be eroded due to price competition and a lack of differentiation (which means that revenue will fall), or funds may go to shareholders or to pay off debts. However, a reduction in capex may also give operators the chance to invest greater sums into new services.

In this article, we describe some of the options for operators that are enabled by falling capex, though many others are possible. Our aim is not to say what an operator should do (the choice will depend on each operator’s position), but to open the discussion that these options exist and are worth considering.