Most connectivity service providers have programs in place to reduce capital expenditures and operating costs, where feasible. Mobile operators face continuing need to invest in spectrum resources as well as network platforms about every decade, so capex requirements will remain elevated.
Fixed network service providers will, in some cases, be able to better control network capex if they are far down the path of converting their access networks to optical fiber or other high-bandwidth access methods.
Vodafone plans to cut €1 billion in costs by 2026 through various initiatives. For its part, América Móvil achieved $2.1 billion in cost savings in 2022.
The TM Forum predicts that telcos will achieve 20-percent to 30-percent cost savings by 2025 through intelligent automation and cloud adoption.
Arthur D. Little estimates that network sharing can generate cost reductions of up to 20 percent for the participating operators.
Many have significant hopes that artificial intelligence will help by supporting automated fault detection, self-healing networks, and dynamic power management, for example.
Migrating to cloud infrastructure and virtualization processes reduces some amount of physical infrastructure. Verizon, for instance, aims to have over 20,000 virtual RAN cell sites by 2025.
Infrastructure sharing likewise has been an effective tool for reducing radio access costs for mobile operators, in some markets.
But opex remains the big potential cost target, as a percentage of revenue.
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