Intro to GTCT – Podcast - 54.70mb | wav
Transcript
00:00:00
Kyle McKenna: Hello. Welcome to the podcast. Today we will be discussing Omdia’s new global telecoms capex tracker. My name is Kyle McKenna. I’m a senior market forecaster in Omdia’s Market Data and Analytics Modeling Team. I’m joined today by author of the tracker, Adam Mackenzie, Senior Analyst in the Service Provider Network Evolution Team. To start us off, Adam, what is the Global Telecoms Capex Tracker?
00:00:28
Adam Mackenzie: Thanks, Kyle. The Global Telecoms Capex Tracker is a new database from Omdia. It provides data on capex and revenue from the top ten global service providers by revenue and digs down into detail about how this capex is allocated for each of the operators covered and for the overall global telecoms market. For example, for each operator, it includes their total revenue and capex numbers, their capital intensity, and then a detailed breakdown of their capex for each quarter going back to 1Q19. This is shown in absolute figures as well as proportionally, so that it’s clear to see how capital allocation between categories has changed over time.
00:01:06
Kyle McKenna: And what is the methodology behind the tracker?
00:01:10
Adam Mackenzie: So the tracker combines a top-down and botto- up approach. Both quantitative and qualitative data was collected from operators’ financial reporting, press releases and presentations, and other sources available. This data was combined with other online trackers for specific technologies, then aggregated, scaled up, and adjusted to reach estimates for global capex allocation. These Omdia estimates were also incorporated when they already existed for specific areas and companies. The top ten CSPs included in the report correspond to approximately 47% of the global telecoms Capex, and this will increase in future updates as more operators are added. Capex estimates are broken down into multiple categories and subcategories. For example, in 2021, global telco capex first level breakdown was into civil infrastructure, about 9%, access networks 37%, transport 13%, and core 3%. Then 8% for cloud infrastructure, 12% for IT and software, 5% for devices and CPE, and 12% ended up in the other category. Some of these categories are then further divided into smaller subcategories, which can be seen in the free link report and in the tracker as well. In total, there are eight major categories and 33 subcategories included.
00:02:33
Kyle McKenna: Great. Which CSPs are included?
00:02:37
Adam Mackenzie: The tracker covers AT&T, Verizon, Deutsche Telekom, China Mobile, Comcast, NTT, China Telecom, SoftBank, Vodafone, and America Movil. In future, the number of operators included will grow.
00:02:52
Kyle McKenna: What are some of the key insights from the tracker?
00:02:56
Adam Mackenzie: So the tracker includes data on the global telecoms market and individual CSPs. For the global market, some key takeaways are: The total telecoms industry Capex grew 2% in 2020 and 6% in 2021, but slowed in 2022. In 1H22, Capex grew 3%, but in 3Q22 it declined by 8% year-on-year. Another takeaway is that the average capital intensity, which is Capex over sales across the industry, was 17% in 2021, up from 16.3% in 2019. For the 12 months ending 3Q22, it rose to 17.4%. Regarding specific companies, China Mobile, China Telecom spent relatively heavily on access networks in 2021, comprising around 46% of their total Capex, compared to 37% for the overall industry. This reflects their heavy investments in 5G and fiber to the home. Among the ten companies analyzed, America movil China Mobile and China Telecom had the highest Capex-to-sales ratio over the 12 months, ending in 3Q22 with 21.1%, 20.3%, and 20%, respectively. Comcast, SoftBank, and NTT had the lowest with 8.3%, 11.9%, and 13.2%, respectively. These are just a few snippets from the tracker and there's much more data available in the file and also in the free report linked.
00:04:17
Kyle McKenna: If someone wants to know more about the telco capex or related topics?
00:04:22
Adam Mackenzie: So if someone wants to know more, they can check out the Omdia website, specifically the Service Provider Network Evolution Service. The full tracker is available through the website for subscribers to that service and more content will be coming out on telco capex, telco opex, general network evolution throughout the year.
00:04:42
Kyle McKenna: Great. Thanks, Adam. Is there anything else we need to know?
00:04:46
Adam Mackenzie: Yeah. So a couple more points. The tracker will be updated twice yearly. More operators will be included as time goes on. It's the first new product as part of a refresh of Omdia’s service provider Network Evolution Service, which is being expanded throughout the year. So subscribers can also expect an Opex tracker soon as well as other related reports. For any more information, please see the Omdia website and please feel free to reach out with any questions you may have about telco content or anything similar.
00:05:18
Kyle McKenna: Thanks, Adam. This has been the intro to the Global Telecoms Capex tracker. Hope to see you again.
00:05:24
Adam Mackenzie: Thanks, Kyle.
Appendix
Author
Adam Mackenzie, Senior Analyst, Service Provider Networks
Kyle McKenna, Senior Market Forecaster
