Global internet content provider CAPEX set to double by 2022: Ovum research

Total global Communications Provider capex totalled U$398 billion in 2017 and is set to grow at 6.4% CAGR to reach U$543bn in 2022, according to new data released by Ovum.

Within this, Ovum’s Communications Provider Revenues & Capex Forecast 2017-22 Report  projects that Internet Content Provider capex will increase more than 100% over the next five years, from U$81bn in 2017 to U$172bn in 2022.

‘Industry revenues, which are included in the forecast, are also expected to rise while capital intensity remains broadly stable,” added Ovum.

Dattani Upin LD cropUpin Dattani, Principal Financial Analyst at Ovum, said capital expenditure for all communications providers combined had been broadly flat for around three years, “accompanying slight revenue reductions at many telecommunications providers.’

“Over the next five years, Ovum forecasts revenue growth at all types of communications providers and, correspondingly, increases in investment, especially as 5G business models develop,” addd Dattani. “Our analysis suggests that by 2022, ICP capex could double, overtaking that of fixed line communications service providers.”

“This reflects both the superior revenue growth prospects and growing importance of the ICP sector, and also the required investment in areas such as servers and data centers, network infrastructure, connectivity, content and software development to develop these internet-based business model,” Dattani said.

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