About this weblog

What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.

Tuesday, May 19, 2020

U.S. Telcos Keep Capex in Check

America’s top four telcos are collectively investing significantly more in property, plant and equipment ($48 billion in 2019) than they were in 2010 ($42 billion). But the aggregate capital intensity (excluding spectrum licenses) of the big four is now hovering around 12.5% - much lower than in Europe where the big telcos invest about 17% of revenues.

Since 2017, the collective capital intensity of the U.S. telcos has been slipping, as AT&T has bet big on the entertainment sector. Verizon is now putting pressure on AT&T by upping its capital spending as it vies for supremacy in 5G.

During the past five years, Sprint (now part of T-Mobile US) has been the clear laggard, investing just $20 billion in capex. Even together, T-Mobile US and Sprint are investing just two-thirds of Verizon's capex budget.

Pringle Media has just published a 50 page report tracking and comparing the key financial metrics of the four big U.S. telcos over the past five years: Screen shots of eight sample pages below.

If you would like to purchase a PDF copy of the report, priced at $100 for a company-wide license, please send an email to pringled@btinternet.com

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