5G core network revenues to get close to $1bn this year

News

Dell’Oro Group says 5G core network accounts for nearly 15% of mobile core network revenues in 2Q 2020.

Research from Dell’Oro Group predict the 5G core (5GC) market will approach $1 billion (€846 million) for 2020, with strong growth continuing into 2021 as service providers ramp-up deployments.
 
“This is the first quarter vendors started to report 5GC revenues, and revenues came in surprisingly strong. Huawei and ZTE led the charge, making them the first and second-ranked vendors for 5GC in 2Q20. Mavenir also surprised with 5GC revenues,” stated David Bolan, Research Director at Dell’Oro Group.

The Trump effect

How much the continued success of the Chinese vendors is affected by the increased restrictions placed on them by the Trump Administration remains to be seen.

Last week the Financial Times [subscription needed] reported that Huawei and ZTE have slowed their 5G base station installation in the China, describing it as "a sign that Washington’s escalating efforts to curb Beijing’s tech ambitions are having an effect".

“The ramp-up in the second half of 2020 has already begun, with T-Mobile commercially launching its 5G Standalone network in August, recognising Cisco and Nokia, as their 5GC suppliers,” Bolan added.
 
“Other service providers expected to launch nationwide 5G Standalone networks in the second half of 2020 include the three service providers in China, which named Huawei, ZTE, Ericsson and Nokia as their 5GC suppliers, and the South Korean service providers, with Ericsson, Nokia, and Samsung, widely expected to be the 5GC suppliers,” he continued.

Late developers

Other highlights from the quarter include  IP Multimedia Subsystem (IMS) Core voice over LTE (VoLTE) revenues grew 8% year on year, to quarter that ended at the close of June, and network function virtualisation (NFV) exceeded 50% year on year growth for the first time in 2Q 2020.