Expanding Fiber Footprints and Sustainable Initiatives Drive Network Operator Ma… – Press Release


DUBLIN, Aug. 2, 2023 /PRNewswire/ — The “Network Operator Forecast Through 2027” report has been added to  ResearchAndMarkets.com’s offering.

This comprehensive forecast spreadsheet provides insights into the revenues, capex, headcount, and other metrics for three segments of network operators: telecom operators (telcos), webscale network operators (webscalers), and carrier-neutral operators (CNNOs).

For the 2023-27 forecast period, capex is expected to total $2,889 billion. Of this new five-year capex total, the splits are: telcos account for 54.5% of the total, webscalers 38.2%, and CNNOs the final 7.3%.

Top line quantitative results

Revenues from the aggregate of the three segments – telco, webscale, and carrier-neutral – were $4,109 billion (B) in 2022, and will grow to $5,052B by 2027. Three-segment capex ended 2022 at $559B, will step up to $577B in 2023, and will likely hit $596B in 2027. Webscale growth eased in 2022 but over the longer timeframe this sector accounts for most network operator growth. In 2011, webscale was less than 10% of capex, but had grown to 36.3% in 2022 and will be about 39% in 2027; CNNOs will represent 8% of 2027 capex, while telcos will constitute about 54%. Telco capital intensity peaked in 2022 at 18.1% amidst 5G buildouts but will end 2027 at about 16.5%. Regional variations will remain; the capex/revenue ratio for US telcos will average to 14.7% in 2023-27, for instance, while India will average 25.1%. Webscale capital intensity averages around 8% for the forecast period; a capex boom at Meta/Facebook has been a big plus in recent quarters, but spending from Microsoft and Alphabet related to AI (including new generative AI platforms) will also lift webscale capex in the next 1-2 years. Capital intensity is highest in carrier-neutral, as usual, well over 30% for the whole forecast period.

Headcount across the three operator segments has grown dramatically in the last decade, from 6.48 million in 2011 to 8.87M in 2022. That is…