5G Factor: CapEx Trends, Q2 2023 for T-Mobile, AT&T, Verizon & T-Mobile Moves

In this episode of The 5G Factor, our series that focuses on all things 5G, the IoT, and the ecosystem as a whole, I’m joined by my colleague and fellow analyst, Todd Weiss, for a look at the top 5G developments and what’s going on that caught our eye. Our discussion centered on: Major CSP CapEx Snapshot: Spotlight on AT&T, DT/T-Mobile, Verizon, China Mobile, Vodafone, China Telecom. Global CSP capital expenditures (CapEx) for the rest of 2023 and partially into 2024 have more clarity with the major CSPs providing mixed projections that indicate mostly flat CapEx growth. Notably, T-Mobile’s parent, Deutsche Telekom, and Verizon have outlooks that respectively decrease CapEx 24% and 19% from 2022 to 2023 with Verizon cutting more in 2024. We investigate what the implications of the global CSP CapEx situation means for the 5G ecosystem in both the U.S. and other parts of the world.  T-Mobile Champions New 5G Carrier Aggregation Capabilities. T-Mobile is championing its new 5G carrier aggregation capabilities, which allows it to combine multiple 5G channels, or carriers, to deliver greater speed and performance. T-Mobile is now merging four 5G channels of sub-6 GHz spectrum – two channels of 2.5 GHz Ultra Capacity 5G, one channel of 1900 MHz and one channel of 600 MHz spectrum that is akin to combining four separate highways into a top performance superhighway. We assess the benefits customers can gain from the new capabilities, especially for 5G SA environments, as well as the competitive implications for the U.S. market.  Q2 2023 Earnings: AT&T, T-Mobile, and Verizon Put Up Good Numbers. AT&T Q2 2023 revenues came in at $29.9 billion, up 0.9% year over year (YoY), Verizon reported Q2 2023 revenue of $32.6 billion, yielding a non-GAAP profit of $1.10 per share, and T-Mobile generated service revenues of $15.7 billion, up 3% YoY. We examine how each of the big three U.S. operators fared across key subscriber and financial categories and where competitive advantages are generated.