Omdias view: telecom operators revenue and capital expenditure will show resilience in the post epidemic Era

 Omdias view: telecom operators revenue and capital expenditure will show resilience in the post epidemic Era

0% in 2020, but the revenue of mobile service providers will continue to decline at a moderate rate of 8.0% in the context of the new epidemic. Upin dattani, head of financial analysis at omdia, said the impact was significant but showed relative resilience compared to most other industries.

Omdia predicts that the capital expenditure of telecom operators will decrease slightly in 2020, but with the construction of 5g (although the speed is slightly slower than before), there will be continuous investment in optical fiber, fixed wireless access, return, forward transmission and it / software, and the overall Telecom capital expenditure will steadily rise in the next three years.

In 2020, some telecom operators may be directly affected by the blocking measures, especially in terms of fixed distance and fixed service. Capital expenditure includes various types of expenditures, including the combination of maintenance expenditure and current demand with expansibility or development investment to prepare for future customer needs and revenue opportunities. In the view of some CFOs, the latter option is more casual, especially in areas where debt or macroeconomic uncertainty is particularly high, and they may take measures to reduce short-term investment to maintain free cash flow.

Looking forward to 2025, omdia believes that long-term trends, including increased broadband consumption, 5g, new Internet of things and enterprise service applications, together with the benefits of industry integration, should drive the growth of Telecom Revenue by more than 2%, with mobile revenue taking the lead.

For Internet platforms, data centers and tower companies, omdia predicts that revenue growth will slow significantly in 2020 (although at a higher absolute level), with internet content providers growing by 8.2% and operating neutral providers by 4.6%, although their prospects will vary by business model. Absolute capital expenditure is expected to grow by 3%, supporting a higher rate of income growth, but capital intensity is lower than in recent years. The home order guidelines have made some Internet companies profitable. With the development of digitalization, it has promoted the development of business and entertainment at the same time. However, omdia lowered its long-term growth expectations, believing that some of the future growth has been advanced to 2020, and as these companies continue to expand in size, double-digit growth rates will be difficult to sustain.

[Note: omdia is a leading global technology research institution, which is formed by the merger of informatechs research divisions (ovum, heavyreading and tractica) and the acquired ihsmarkit technology research division.

Source: c114 communication network editor: Liu Fei_ NBJS10390