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Top 10 telecoms based on Capex spending

MTN Consulting has published a telecom analysis report showing the top 10 mobile operators based on their Capex during the first quarter of 2020. top 10 telecommunication companies

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Telecom network operator Capex fell by approximately 1.3 percent to $70.2 billion in the first quarter of 2020.

Telco revenues in 1Q20 were $446.3 billion, dropping a bit faster than capex, down 2.2% from 1Q19. That disparity pushed the average 12-month capital intensity for the telco sector up slightly, to 16.35% from 16.31% in 4Q19.

telco capex

Amid the attempt to slow the spread of COVID-19, many telcos saw opportunities in the widespread lockdowns and rapid shift to working (and studying) from home, and embracing these opportunities required new network investment. Government classification of telecom construction as an “essential service” in many countries, plus the industry’s ongoing shift towards self-installation and automated customer care, helped to moderate some of the worst effects of the lockdowns. Supply chain constraints related to COVID-19’s spread appeared to be far more of a factor for vendors trying to assemble and ship gear than for telcos trying to install it; in the short run, a slowdown in government action on permitting and auctions has been a bigger concern. For network spending, the second quarter is likely to be significantly worse in a number of country markets, including the United States, and the overall network investment outlook for 2H20 is muddled. In earnings calls, many large telcos predicted that the worst of the crisis would be over with the closing of 2Q, but that they are retaining flexibility in their 2020 capex plans in order to deal with the uncertainty.

China Mobile, the largest telecom operator based on the number of subscribers on its network, is the leading service provider in terms of Capex.

China Mobile                6,615 mn
NTT                6,393 mn
Verizon                5,274 mn
AT&T                4,938 mn
Deutsche Telekom                3,699 mn
China Telecom                2,749 mn
SoftBank                2,341 mn
Vodafone                2,140 mn
China Unicom                1,960 mn
Orange                1,736 mn

The first quarter Capex of China Mobile reached $6.615 billion.

The Capex of NTT was $6.393 billion.

Verizon had Capex of $5.274 billion.

AT&T had spent $4.938 billion towards Capex.

Deutsche Telekom’s Capex was $3.699 billion in Q1 2020.

The first quarter Capex of China Telecom was $2.749 billion.

SoftBank made an investment of $2.341 billion towards Capex during the first quarter of 2020.

Vodafone Group’s Capex during the first quarter of 2020 was $2.140 billion.

China Unicom had $1.960 billion towards Capex.

Orange Group Capex touched $1.736 billion. top 10 telecommunication companies

 

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