Telecom capital expenditure (capex) is projected to decrease through at least 2030, both in total value and as a proportion of revenue, potentially boosting operator profitability. However, this increased profit could be offset by intensified price competition and a lack of market differentiation, leading to a decline in revenue. Alternatively, the savings may be distributed to shareholders or used to reduce debt. On the other hand, lower capex could present operators with opportunities to invest more heavily in new services.
In this article, we explore several potential avenues for operators to pursue, made possible by reduced capex, though many other options remain. The best approach will depend on each operator’s unique circumstances. This short article highlights the availability of these options for further consideration.
