The end of big capex: new strategic options for the telecoms industry
"The telecoms industry is beset by a crisis of overproduction of bandwidth; both operators and vendors need to harness new quality productive forces rather than the old productive forces that have delivered wave after wave of lower costs and lower prices."
Global operator capex fell in 2023 and is likely to continue to fall steeply for the rest of the decade. While this poses problems for vendors, operators face intriguing new strategic choices.
Information included in this report
- A demonstration of how bandwidth supply and demand have decoupled as the result of a classic crisis of overproduction
- An analysis of why this has come about
- A long-range view of telecoms capex
- An indication of the strategic responses that operators and vendors can take
Author
Rupert Wood
Research Director, expert in infrastructure, fixed networks and wholesaleRelated items
18 November 2024
Research
Article
Norlys shows how smaller players can combine telecoms and energy products to remain efficient
04 November 2024
Research
Article
Iliad’s central telecoms strategy is similar to that of most operators, but the details have lessons for others
31 October 2024
Research
Strategy report
New mobile entrants: the economic implications of different spending strategies