The "Telco OPEX Analyzer, 2016-23" report has been added to ResearchAndMarkets.com's offering.
This report provides a deep dive into telco OpEx trends by category from 2016 to 2013, analyzing data from 32 companies across key regions.
Managing OpEx wisely is essential for telcos to thrive and grow profitability: in 2023, global telco revenues fell 0.5% YoY to $1,778.1B. That marks a decade-low, due to currency fluctuations, particularly in Japan, and limited 5G monetization opportunities. In addition to stagnant revenues, telcos face high capex demands and fierce competition, emphasizing the need for strategic cost optimization beyond traditional methods like asset sell-offs and outsourcing. Getting OpEx under control is key.
Key findings of the telco OPEX study include:
- Total OpEx fell by 1% in 2023, but OPEX excluding depreciation and amortization (D&A) declined by 0.5%, or about the same rate of decline as revenues. The difference is D&A, which fell at the much steeper clip of 3% in 2023.
- Network-related OpEx, encompassing operations, leasing, utilities, and D&A, constitutes 50.8% of total OpEx, with significant company-specific variations.
- Network operations costs rose from 16.5% of OpEx in 2016 to 18.4% in 2023. Network leasing OpEx declined several years ago due to new accounting rules (IFRS 16) and are now steadily in the 3 to 3.5% range.
- Depreciation and amortization, the largest OpEx category, grew to 23.4% of OPEX in 2023.
- Labor costs, accounting for over 16% of OpEx, are rising as telcos compete for digital talent and embrace automation. As a percentage of total OpEx, labor costs increased from 16.2% in 2016 to 17.4% in 2023.
The report underscores the need for telcos to standardize OpEx tracking and implement transformative measures to enhance profitability. By benchmarking costs and uncovering inefficiencies, telcos and vendors can better navigate industry challenges and opportunities.
Key Topics Covered:
- Report Highlights
- Abstract
- Results for Group of 32 Telcos
- Results by Company
- Taxonomy
List of Figures and Charts
- Capex and Opex as % of Revenues - Group of 32
- Network-related capex and opex in 2016-23: Group of 32 (% revenues)
- Opex by category, 2016-23 average
- Network-related opex categories as % of total opex, 2016-23
- All network-related opex, % total
- Profit margins for group of 32 telcos, 2016-23 average
- Labor costs as a % of total opex
- Labor costs per employee (US$K)
- Opex items by company, % total opex: 2023
- Profitability margins by company, 2023
- Company-level revenue (US$M) and capital intensity
- Company-level network-related capex and opex in 2016-23
- Company-level opex by category, 2016-23 average
- Company-level network-related opex categories, as % of total opex, 2016-23
- Company-level all network-related opex as % of total opex
- Labor costs per employee (US$K): company vs. global telco average
- Labor costs as a % of total opex: company vs. global telco average
- Average profit margins, 2016-23: company vs. global telco average
- Company-level profitability trends, 2016-23
Company Coverage:
- Advanced Info Service (AIS)
- Airtel
- Batelco
- BT
- Charter Communications
- China Mobile
- Chunghwa Telecom
- Du
- Etisalat
- Globe Telecom
- KDDI
- KPN
- LG Uplus
- Megafon
- MTN Group
- Oi
- Ooredoo
- Orange
- PLDT
- Proximus
- Saudi Telecom (STC)
- Singtel
- SK Telecom
- Starhub
- Swisscom
- Tata Communications
- Telecom Argentina
- Telecom Italia
- Telkom Indonesia
- Telus
- Turk Telekom
- Veon
For more information about this report visit https://www.researchandmarkets.com/r/hqki9d
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250127082600/en/
Contacts
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./ CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
