![WHERE IS THE CAPEX GOING?](https://cdn.magzter.com/Voice and Data/1715351960/articles/_u8goV3Z41715763350568/WHERE-IS-THE-CAPEX-GOING.jpg)
As telcos across the world alter their Capex spending, does it signal a permanent shift, reflecting broader strategic transformation amidst new challenges?
That is a running joke in the tech industry. And the maxim has held true. The shifts from mainframes to clients, from huge IT departments to outsourcing, from on-premise to Cloud—these pivots have been possible only because something is ‘detachable’, if not exactly ‘throw-able’.
Incidentally, as telcos enter stormy waters or set sail for new horizons, their heavy ships are also bringing a lot of iron and piling them on the deck. From towers being outsourced to the move towards small cell sites to a thinner Capex purse—a lot of iron is slowly being slipped away from the deck, silently finding its way out of the ship. Maybe it is a manoeuvre to make the ship light enough to swim in tough patches? Maybe it is just spring cleaning to make way for a new kind of metal? Or maybe it is just a ‘wait and watch’ interlude? So why is the Capex going down, and is it from the Starboard side or the Port one?
CAPPEX DIPS, TELCO FLIPS
A glance at some guidance and announcements in the telco corridors hints at the new graph Capex is taking here. When Verizon shared its capital expenditures for 2024, it etched a downward slope, showing a substantial reduction from USD 23.1 billion in 2022 to USD 18.8 billion in 2023 to about USD 17.0 billion and USD 17.5 billion in 2024.
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