REDWOOD CITY, Calif. – October 6, 2026 – According to a recently published report from Dell’Oro Group, a trusted source for market information on the telecommunications, security, networks, and data center industries, worldwide telecom capex increased about 5 percent year-over-year (Y/Y) in the first half of 2026. The stronger-than-expected start to the year follows several years of declining investment and marks an improvement relative to expectations at the beginning of 2026.
Telecom equipment trends remain closely aligned with capex. Aggregate manufacturer revenues across the six telecom equipment programs tracked by Dell’Oro Group—Broadband Access, Microwave & Optical Transport, Mobile Core Network (MCN), Radio Access Network (RAN), and High End Router & Aggregation—also increased approximately 5 percent Y/Y in 1H26.
“The first half was stronger than we expected, but the improving near-term trajectory does not materially change the longer-term capex story,” said Stefan Pongratz, Vice President at Dell’Oro Group. “Operators are in a stronger capacity position following the 5G and fiber investment cycles, and the focus is gradually shifting from coverage toward capacity, modernization, automation, and efficiency. At the same time, improving operator revenues are helping to reduce capital intensity ratios even as network investments remain flat.”