Global Telecommunications 2024 Outlook: Highlighting the Critical Nature of Connectivity

DBRS Morningstar’s 2024 outlook for the global telecommunications sector is Stable. While we acknowledge the ongoing challenges that the industry will face in 2024, we also recognize these same challenges highlight the utility-like nature of broadband services and the critical role in consumer and enterprise connectivity that the industry plays.

Key Highlights:
-- The Stable outlook acknowledges challenges, but highlights the resiliency of the sector.
-- Despite headwinds, margins are expected to stabilize in 2024.
-- We anticipate a more conservative approach to capital allocation going forward.

“This is not to suggest that these challenges are not expected to have an impact on the industry, but rather they highlight the essential nature of connectivity and how the industry is well positioned to navigate these challenges using a number of levers in order to mitigate these headwinds,” said Scott Rattee, Senior Vice President, Diversified Industries.