Worldwide Telecom Capex Rises 5 Percent in 1H26
News related to:Dell'Oro Group · 1 min read
REDWOOD CITY, Calif., Oct. 6, 2026 /CourierPR/ -- Dell'Oro Group, a market research firm specializing in telecommunications, has reported that worldwide telecom capital expenditure (capex) increased by 5 percent year-over-year (Y/Y) in the first half of 2026. This stronger-than-expected start to the year follows several years of declining investment and marks an improvement relative to expectations at the beginning of 2026.
According to the report, telecom equipment trends remain closely aligned with capex. Across the six telecom equipment programs tracked by Dell'Oro Group, Broadband Access, Microwave & Optical Transport, Mobile Core Network (MCN), Radio Access Network (RAN), and High End Router & Aggregation, aggregate manufacturer revenues also increased by approximately 5 percent Y/Y in the first half of 2026.
He explained that operators are in a stronger capacity position following the 5G and fiber investment cycles, and the focus is gradually shifting from coverage toward capacity, modernization, automation, and efficiency. At the same time, improving operator revenues are helping to reduce capital intensity ratios even as network investments remain flat.
The report highlights that despite the stronger start to 2026, Dell'Oro Group made only negligible revisions to its longer-term forecast. Worldwide telecom capex is projected to grow at a 0 to 1 percent compound annual growth rate (CAGR) between 2025 and 2030, reflecting a more mature investment environment following the major 5G and fiber coverage cycles.
Capital intensity, which peaked at 18 percent in 2022, is projected to decline to around 14 percent in 2028, before increasing modestly as early 6G investment emerges. Telecom equipment revenues are projected to grow at a 2 to 3 percent CAGR between 2025 and 2030, outpacing capital expenditures, partly reflecting incremental demand from cloud providers.
The report provides in-depth coverage of more than 50 telecom operators, highlighting carrier revenue, capital expenditure, and capital intensity trends. The analysis covers actual and five-year forecast details by carrier, by region, by country (United States, Canada, China, India, Japan, and South Korea), and by technology (wireless/wireline).