Top 20 global telco update Q2 2023

Summary

Global telecommunications operators hit a growth speed bump in the second quarter of 2023, as revenue momentum that had held steady for three consecutive quarters cooled sharply across the world's twenty largest carriers. The slowdown was far from uniform: Indian operators continued to post standout growth even as it moderated slightly, while several major European and North American carriers reported outright revenue declines, widening the performance gap between emerging and mature telecom markets.

Profitability told a more encouraging story, with combined EBITDA margins climbing to their highest level in recent quarters as operators leaned into cost discipline programs and enterprise ICT contracts helped offset softer consumer connectivity spending. Capital expenditure, meanwhile, continued easing as 5G rollouts matured across most regions, though a handful of operators bucked the trend by accelerating network investment, including moves into intercity fibre and expanded tower footprints.

Average revenue per user showed modest single-digit growth across most markets, with tariff adjustments and premium subscriber mix shifts driving gains in South Asia even as some East Asian operators faced continued pricing and regulatory pressure. The quarter also brought one of the telecom sector's most significant consolidation moves in years, as two major European operators agreed to merge their national businesses, reshaping the competitive landscape for one of Europe's largest telecom markets, alongside a wave of new vendor partnerships targeting enterprise, IoT and network optimization use cases.

• Revenue, EBITDA, CAPEX and ARPU trends across the world's largest telcos
• Enterprise ICT and 5G-driven partnerships with leading technology vendors
• A major European telecom merger reshaping national market structure

With 5G capital spending easing, where will the world's largest telecom operators find their next source of growth?