Telecom Capex on wireless and wireline business is projected to grow at one percent CAGR between 2019 and 2022, according to a report from Dell’Oro Group.
Wireless Capex is projected to grow at a faster pace than wireline Capex. 5G Capex will be accelerating rapidly over the forecast period.
Capital intensity ratios are projected to advance at a one percent CAGR between 2019 and 2022, driven primarily by an uptick in wireless Capex/revenue.
Wireless investments in China, propelled by the shift from 4G to 5G, are projected to drive the large share of the Capex upside over 2019 to 2022.
Following three years of elevated investment levels in the U.S. telecom market, wireless investments will be characterized by robust mid-band Capex, increasing millimeter wave investments, and some moderation in low-band projects.