RAN network revenues set to fall as 5G takes focus
After several years of growth, the Radio Access Network (RAN) market has begun to plateau, a new report from the Dell’Oro Group has claimed adding that the market now appears poised for a decline.
As per the report, between 2017 and 2021, RAN revenues grew between 40 and 50%. In 2022, however, they flattened out, with the trend spilling into the first quarter of 2023.
“Even if it is early days in the broader 5G journey, the challenge now is the comparisons are becoming more challenging in the more mature 5G markets and the upside with the slower-to-adopt 5G regions is not enough to extend the growth streak,” said Stefan Pongratz, Vice President at Dell’Oro Group. “Meanwhile, growth from new revenue streams including Fixed Wireless Access and enterprise LTE/5G is not ramping fast enough to change the trajectory. With 5G-Advanced not expected to trigger a new capex cycle, the question now is no longer whether RAN will grow. The question now is, rather, how much will the RAN market decline before 6G comes along?”
Steep decline
Over the next five years, the report further states, global RAN is projected to decline at a 1% compound annual growth rate (CAGR) over the next five years. The analysts also expect steeper declines in more developed 5G regions such as North America and China, while the less advanced regions might perform somewhat better.
LTE is still handling most of mobile traffic, the analysts said, but when it comes to new RAN investments the focus is clearly on 5G, it was said. Even with the more challenging comparisons, 5G is expected to grow by another 20-30% by 2027. Still, that won’t be enough to offset steep declines in LTE.
“With mmWave comprising a low single-digit share of the RAN market and skepticism growing about the MBB business case, it is worth noting that our position has not changed,” the analysts concluded. “We still envision that the mmWave spectrum will play a pivotal role in the long-term capacity roadmap.”
After several years of growth, the Radio Access Network (RAN) market has begun to plateau, a new report from the Dell’Oro Group has claimed adding that the market now appears poised for a decline. As per the report, between 2017 and 2021, RAN revenues grew between 40 and 50%. In…
Recent Posts
- LockBit ransomware site returns — but don’t worry, it might actually be OK
- Tubi is launching a new ‘fan-fueled’ studio to cultivate the next generation of filmmakers
- 7 Best E-Readers (2024): Kindle, Nook, Kobo
- Instacart is getting restaurant delivery — thanks to Uber Eats
- We may all hate them — but it seems parrots don’t mind video calls
Archives
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- December 2011