5G MCN Growth Rate Continues to Decelerate in
1Q 2024
REDWOOD
CITY, Calif., May 22, 2024
/PRNewswire/ -- According to a recently published report from
Dell'Oro Group, the trusted source for market information about the
telecommunications, security, networks, and data center industries,
the 1Q 2024 Mobile Core Network (MCN) market dropped 10 percent as
economic headwinds grip the market. The 5G MCN market growth rate
continues to decelerate in 1Q 2024.
"The four-quarter rolling average has developed an ominous
downward trend for three quarters as economic headwinds tighten
their grip on the market, moving into negative territory in
year-over-year (Y/Y) growth rate in 1Q 2024," stated Dave Bolan, Research Director at Dell'Oro Group.
"This suggests that the downward trajectory will last at least one
more quarter after the market high in 1Q 2023 falls out of the
four-quarter rolling average. In addition, the 5G MCN market, based
on the four-quarter rolling average, has now decelerated for five
quarters in a row.
"Inflation has impacted the ability of some Mobile Network
Operators (MNOs) to raise capital, and it has also impacted
subscribers when it comes to upgrading their phones to 5G. Many
MNOs have lowered their CAPEX plans and announced that they have
fewer than expected 5G subscribers on their networks; which limits
MNOs' growth plans. As a result, we are lowering our expectations
for 2024 from a positive growth rate to a negative one," continued
Bolan.
Additional highlights from the 1Q 2024 Mobile Core Network and
Multi-Access Edge Computing Report include:
- As of 1Q 2024, 51 MNOs have commercially deployed 5G SA eMBB
networks with two additional MNOS launching in 1Q 2024.
- Based on the four-quarter rolling average trends, CALA and EMEA
are trending into negative territory in terms of Y/Y revenue growth
rates. North America is also
trending into negative territory, while Asia Pacific, including China, is trending positive as of 1Q
2024.
- Based on the four-quarter rolling average trend, the top four
vendor rankings and shares remained stable between 4Q 2023 and 1Q
2024.
About the Report
The Dell'Oro Group Mobile Core Network & Multi-Access Edge
Computing Quarterly Report offers complete, in-depth coverage of
the market with tables covering manufacturers' revenue, shipments,
and average selling prices for Evolved Packet Core, 5G Packet Core,
Policy, Subscriber Data Management, Signaling and IMS Core
including licenses by Non-NFV and NFV, and by geographic regions.
To purchase this report, please contact us at
dgsales@delloro.com.
About Dell'Oro Group
Dell'Oro Group is a market research firm that specializes in
strategic competitive analysis in the telecommunications, security,
enterprise networks, and data center infrastructure markets. Our
firm provides in-depth quantitative data and qualitative analysis
to facilitate critical, fact-based business decisions. For more
information, contact Dell'Oro Group at +1.650.622.9400 or
visit https://www.delloro.com.
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SOURCE Dell'Oro Group