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Hello,
Thanks for your interest in our latest research. You can view a summary of our latest report below.
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The Telco NI market is fueled by spending in the telecom operator (telco) sector, so the financial health and spending patterns of the telco market are worth reviewing. In 4Q23, telco capex slipped further by 4.1% on a YoY basis to post $85.9B. Telcos continue to exercise caution amid inflation and macroeconomic uncertainties, constraining their spending abilities. Another factor is the completion of accelerated 5G network build-outs in key markets such as the US, China, and parts of Europe. Telco executives are also diverting capital towards share buybacks, indicating a rising priority on fulfilling investor expectations. For example, Deutsche Telekom is planning a share buyback worth >$2 billion in 2024; Airtel in Africa will repurchase up to $100 million worth of its shares this year. The 4Q23 capex drop contributed to a 3.6% YoY decrease in full-year capex, which was $315.1 billion in 2023. This decline impacted annualized capital intensity, which fell from its peak of 18.5% in 1Q23 to 17.7% in 4Q23, though still elevated relative to historic averages. Heightened fiber deployment, upgrades supporting fixed broadband, and the continued expansion of 5G in markets like India have contributed to maintaining annualized capital intensity at near-record levels.
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Telco NI vendor revenues amounted to...
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Best regards,
Matt Walker
Chief Analyst
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