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Introduction

Total communications industry revenue increased to $3.5tn, driven by steady growth of fixed and mobile telecoms operators along with rapid growth shown by internet content providers (ICPs) and carrier neutral providers (CNPs).

Highlights

  • Increase in demand for high-speed broadband, content, and enterprise services saw 0.9% growth in fixed CSP revenue in rolling 12 months. Mobile CSP revenue witnessed a 0.3% decline due to intense competition and pricing pressures. Increase in cloud migration, e-commerce, and OTT services led to 12.9% growth in ICP revenues. CSPs dependency on carrier neutral providers for telecom towers and data centers led to increase in CNP revenues by 6.9% in 1Q19.
  • The rolling 12 months' CP capex grew 5.6% in 1Q19; CP capital intensity increased from 14.0% in 1Q18 to 14.1% in 1Q19. Fixed CSP capex declined by 7.2% while mobile CSP capex increased by 8.8% in 1Q19. Most notably, ICP capex for rolling 12 months increased by 24.3% in 1Q19. Fixed capital intensity was at 17.6% while mobile capital intensity was 18.7% in 1Q19.

Features and Benefits

  • Assesses recent growth trends for four types of service providers – CSPs (both fixed and mobile), ICPs, and CNPs – accounting for $3.5tn in annual revenues.
  • Examines growth rates and market share data for planning, competitive intelligence, and marketing.
  • Assesses near-term outlook for CP capex and the vendors selling into the market.
  • Identifies key trends shaping major capex projects in 2019.

Key questions answered

  • Which communications provider segments saw revenue growth in 1Q19?
  • Which segments and companies are spending the most on their networks, and how is that changing over time?
  • What is driving growth in the ICP sector, and how are these companies impacting the broader communications tech industry?

Table of contents

Summary

  • Introduction
  • Download 1: Communications Provider Revenue & Capex Highlights: 1Q19