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 firstname.lastname@example.org
Labels: More U.S. telecoms
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