This report reviews the growth and development of the telecommunications network operator (TNO, or telco) market. The report tracks a wide range of financial stats for 140 telcos across the globe, from 1Q11 through 2Q24. For the annualized 2Q24 period, telcos represented $1.77 trillion (T) in revenues (0.1% growth YoY), $262.9 billion (B) in labor costs (2.1% YoY), and $300.7B in capex (-6.9% YoY). They employed approximately 4.48 million people as of June 2024, down 1.2% from the prior year. Report highlights include:

Revenues: Telco topline declined by 1.4% year-over-year (YoY) to reach $437.8 billion (B) in the latest single quarter ending 2Q24. At the operator level, five of the top 20 best performing telcos by topline growth in 2Q24 on an annualized basis include America Movil (8.0%), STC (Saudi Telecom) (5.8%), BT (4.7%), Telefonica (3.6%), and Orange (2.9%).

Capex: Capex spending plunged by 8.0% on a YoY basis to post $69.4B in the latest single quarter ending June 2024. At the operator level, five of the top 20 best performing telcos by capex growth in 2Q24 on an annualized basis include BSNL (128.2%), KDDI (23.6%), Telecom Italia (9.1%), Charter Communications (7.9%), and America Movil (7.6%).

Labor costs: Labor costs grew by 2.1% YoY in the annualized 2Q24 period, pushing labor costs as a percentage of opex (excluding D&A) slightly up from 22.2% in 2Q23 to 22.4% in 2Q24 on an annualized basis. This growth occurred despite an ongoing reduction in industry headcount; the telco workforce ended 2Q24 at 4.48 million, down 1.2% YoY.

Profitability margins: Both EBITDA and EBIT margins experienced a slight uptick in 2Q24 on an annualized basis compared to the previous quarter.

Regional trends: The Americas region outpaced Asia to reclaim its position as the largest region by revenue, holding a 37.3% share in 2Q24. On a capex basis, the Asia region outspent the Americas, capturing a 36.5% share in the latest quarter.

Author Bio:

Chris McDonald is the Manager at Complete Connection, where he leads the development of cutting-edge solutions in web application development and emerging technologies like Intelligent Reflecting Surfaces (RIS). He regularly writes about advancements in technology and how they can transform industries. If you’re interested in contributing your insights, visit our Write for Us Technology page to learn more about submitting guest articles on the latest in web development and tech innovations.