“2023 capital will be lower,” CEO Mike Sievert told investors. Deutsche Telekom, Verizon, and AT&T intend to reduce capex. Japanese giant NTT has already cut capex despite the 5G buildout.
TMO was first to widespread mid-band, more than doubling capacity. Mid-band Massive MIMO yields more capacity than most telcos can sell into late in the decade.
Over-capacity, not network buildout, is the biggest problem telcos face today.
From Sievert
This year is sort of a peak capital year with well over $13 billion in capital, but it will go down now to support this business plan because we’re through the major part of the integration, ’23 capital will be lower. And you start to see EBITDA will be higher and you start to see the cash unlock start to take off.