Global market review of telecom network operators T2 2020: capital expenditure falls to a minimum of 10 years, revenue falls amid COVID-19 pandemic

Dublin, 28 September 2020 (GLOBE NEWSWIRE) – Added to ResearchAndMarkets. com’s offer to “Telecommunication Network Operators: 2Q20 Market Review”.

This market study provides a comprehensive assessment of the global telecommunications industry on monetary effects through June 2020 (2Q20). The report tracks the income, capital expenditures, and workers of 138 telecommunications network operators (NWTs). For a subgroup of 50 giant NWTs, the report also assesses trends in labor costs, trading and operating profits. The report also covers annual knowledge of other monetary measures such as debt, short-term money and investment, M&A expenses, and money flows similar to TNO-50 operations. levels was 1,111 to 2. 20 (38 quarters).

The existing global telecommunications market experienced an annual decline in revenue and investment by 2. 20 for the time being consecutive quarter. Lower revenue from roaming, advertising and equipment sales contributed to a year-on-year reduction of 5. 4%, bringing overall market revenue to $427 billion by 2. 20 consistent with the penny. Volatility in exchange rates also contributed to the fall. Higher pressure for telecommunications or consistent with the factors exposed in Brazil, Argentina, Mexico and Chile. Sales in USD decreased by an average of 28% year-on-year in 2020 for those places in the LATAM market.

Investment in telecommunications also reflected the downward trend in revenue, which swiping by 6. 2% year-on-year to $65. 5 billion at $2. 20. Annual capital intensity remained at 16. 0%, the same point as in 4Q19 and 1. 20; There’s no slezzle in 5G spending. Barriers to capital expenditure come with macroeconomic tensions, the need for liquidity, the threat of Chinese suppliers, and uncertainty about how telecom operators will monetize 5G. Telecom operators have also curbed discretionary spending due to long-term considerations. Long-term business spending, NWTs will most likely review their capital budgets and reduce 5G spending.

1) Revenue: Global telecommunications gains of 2. 20 billion were $427 billion, 5. 4% less than 2. 19. The reasons for this decline are multiple: a drop in phone sales due to retail closures and chain-of-origin outages and a decrease in roaming profits such as mobile phone production has also been under pressure of origin due to shortages of parts and blocking related chains of origin due to labor shortages and logistical interruptions regionally , annual gains in 2Q20 fell in the 4 regions, namely in the Americas (8%), followed by Europe (5%), MEA (4%) Asia (2%). Although operators around the world have tried to balance the effect of reducing the source of prepaid profits and roaming with the adoption of consistent superior Internet facilities and postpaid use, profit expansion has continued to decline dramatically due to the overall decline in economic activity.

2) Capex: Global investments fell 6. 2% year-on-year to $ 65. 5 billion in 2Q20. The industry’s capital investment ratio to annualized earnings was 16% in 2Q20, down from 16. 5% a year ago, as telecommunications operators prioritized their investment in maintenance and upgrades over extension projects. network policy. Telecom operators, particularly in Europe, have noted their capital cut as a precautionary measure to preserve liquidity for long-term spectrum auctions. By contrast, Chinese telecommunications companies are increasing their investment in network construction. The combined capex of the 3 largest telecom corporations in China was successful at $ 24 billion in 1H20, up 15% year-on-year. China’s readiness for 5G is well under way: the country started in 2020 with ~ 130,000 5G base stations, added 280,000 in 1H20, and aims to succeed at 600,000 5G-compatible base stations by the end of 2020. a push from the government and has benefited the main local supplier Huawei. This has been a relief for Huawei given the spread of 5G network participation bans in various European and Asian markets.

3) Employees: Telecoms hired 5. 1 million others in 2Q20, 2% less year after year. The global workforce of telecom operators has been relatively strong for several years, partly due to expansion in Asia, but the 2020 recession can simply replace that. In India, public telecommunications corporations BSNL and MTNL reduced their workforce through another 54,000 people in 2Q20 compared to a year ago. In the United States, AT’s combined workforce

4) Worker-consistent labor income and prices: On a profit commensurate with the Workers’ Foundation (PPE), the telecommunications sector has stagnated since 2011: the annualized $363K figure that year, and the average figure for the last 4 quarters $347K. By contrast, the annualized RPE in the Web scale sector exceeded $526,000 by 2. 20 consistent with worker-consistent percentage telecommunications labor prices, on an annualized basis, higher than $55. 8K at 2. 19 to $56. 1K at 2. 20.

6) Profitability: Operating margins have been solid since the last 11 quarters, a average of around 13. 6% annualized. The operating margins of the quarter, on an annualized basis, increased by 2. 20 to 14. 1%, to 13. 6% at 2-19. Margin accumulation is due to minimization in opex

Key topics covered:

1. Summary 2. Market overview 3. Analysis 4. Key statistics up to 2Q205. Operator Rating 6. In-depth research and comparative research of corporate 7. Eruptions in the country 8. Regional eruptions 9. Gross knowledge 10. Subscribers and traffic 11. Change rate 12. Methodology and scope 13. On

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