Worldwide Telecom Capex Rises 5 Percent in 1H26, According to Dell'Oro Group

Longer-Term Capex Outlook Remains Muted as Investment Shifts from Coverage to Capacity

REDWOOD CITY, Calif., Oct. 6, 2026 /PRNewswire/ -- According to a recently published report from Dell'Oro Group, a trusted source for market information on the telecommunications, security, networks, and data center industries, worldwide telecom capex increased about 5 percent year-over-year (Y/Y) in the first half of 2026. The 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.

Telecom equipment trends remain closely aligned with capex. Aggregate manufacturer revenues 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—also increased approximately 5 percent Y/Y in 1H26.

"The first half was stronger than we expected, but the improving near-term trajectory does not materially change the longer-term capex story," said Stefan Pongratz, Vice President at Dell'Oro Group. "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."

Additional highlights from the September 2026 Telecom Capex report:

• 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 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 CSP capex, partly reflecting incremental demand from cloud providers.

About the Report
The Dell'Oro Group Telecom Capex Report provides in-depth coverage of more than 50 telecom operators, highlighting carrier revenue, capital expenditure, and capital intensity trends. The report provides actual and 5-year forecast details by carrier, by region, by country (United States, Canada, China, India, Japan, and South Korea), and by technology (wireless/wireline). To purchase this report, please contact us by email at [email protected].

About Dell'Oro Group
Dell'Oro Group is a market research firm specializing in strategic competitive analysis of the telecommunications, enterprise networks & security, and data center infrastructure markets. Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions. For more information, please contact Dell'Oro Group at +1.650.622.9400 or visit www.delloro.com.

SOURCE Dell'Oro Group