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Telco Capex Wanes as 5G Disappoints

5 Gconnect1

By: Mary Jander

Carriers worldwide continue to spend on 5G buildouts following massive spectrum purchases in 2021, though market reception of 5G services is muted and capex may be tapering off starting in 2024.

Indeed, the buildouts have been disappointing. Recent information from Futuriom’s research hints that consumers are indifferent to 5G. And there is relatively stable but lukewarm demand from enterprise customers for private 5G services, which telcos had hoped would bolster their coffers once infrastructure was available. Instead, it seems enterprises continue to rely on 4G LTE and WiFi services for many of the same functions promised by carrier private 5G.

Let’s take a closer look at the situation.

Telco Capex Will Wane in North America

For the year 2022, communications service providers in North America invested heavily in network improvements, including fiber buildouts in support of faster Internet services, along with related 5G infrastructure. Now, the major carriers foresee less capital expenditure (capex) going forward, as massive spectrum buildouts near completion.

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