This implies that the relationship between capital expenditure and telecom equipment revenues across the six programs analyzed by Dell'Oro Group—Broadband Access, Microwave and Optical Transport, Mobile Core Network (MCN), Radio Access Network (RAN), and Service Provider Routers and Switches—remained stable. As a reminder, equipment manufacturers' revenues grew 4% year-over-year through 2025. The slightly higher growth in equipment revenues compared to capital expenditures can be partly explained by the momentum of cloud service providers. We estimate that these providers accounted for about half of the growth in equipment revenues.
"We are seeing an interesting dynamic between long-term optimism and short-term visibility," said Stefan Pongratz, vice president of Dell'Oro Group. "Operators remain optimistic about the long-term network outlook, especially as AI drives new demand, but in the short term they are taking a more cautious stance, with many planning to moderate capital spending," Pongratz added.
Other highlights from the March 2026 Telecoms Capital Expenditure Report:
Global telecoms capital expenditure is projected to decline by 2% in 2026 and grow at a compound annual growth rate (CAGR) of 1% through 2030.
With operator revenues on track for modest growth (a CAGR of around 2%), the fixed capital expenditure-to-revenue ratio is expected to approach 14% in 2029.
Capital intensity in the wireless sector is projected to approach 11% in 2029, seven percentage points below the peak reached with 5G.
