403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
Telco Opex 2016-2023: Insights Into Network Costs, Labor Trends And Profitability Strategies
(MENAFN- GlobeNewsWire - Nasdaq) Dublin, Jan. 20, 2025 (GLOBE NEWSWIRE) -- The "Telco OPEX Analyzer, 2016-23" report has been added to ResearchAndMarkets.com's offering.
This report provides a deep dive into telco OpExtrends 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 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 OpExunder control is key.
Key findings of the telco OPEX study include:
- Total OpExfell 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 OpExcategory, 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 OpExtracking 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
About 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.
Attachment
-
CAPEX and OPEX Breakdowns for selected company
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Comments
No comment