target audience: TECH SUPPLIER Publication date: Sep 2023 - Document type: Market Perspective - Doc Document number: # CA51161123
Canadian Communications Service Provider Capex Spending, 2022–2023: Doing More with Less
This IDC Market Perspective details Canadian communications service provider capex spending for 2022–2023. Significant investments are advancing communications service providers' infrastructure in Canada. After a slowdown in investment in 2020 due to constraints related to the COVID-19 pandemic, Canada's communication services capex saw significant growth in the following years. After significant capex growth in 2021 and 2022, IDC Canada expects capex to decline in 2023. The top 3 Canadian communications service providers by capex spend, Bell Canada, Rogers Communications, and Telus, are expected to hold a combined 83.8% share of all capex in the Canadian communications service provider market for 2023. The decisions they make on their capital investment budgets largely determine the movement of capex spending for the entire market.
"Overall, healthy investment is continuing in the Canadian communications service provider market," say Praveen Datta, research director for Canadian Communications Services at IDC. "For 2023, we expect growth to continue for wireless capex with a reasonable pullback in wireline capex after a sustained period of significant fibre-optic network expansion."