Preliminary findings show that the expansion phase of the Radio Access Network (RAN) has now faded, according to a new report from Dell'Oro Group. Following the intense ramp-up from 2017 through 2021, RAN revenues stabilized in 2022 and 1Q23. Market conditions worsened in the second quarter, resulting in RAN declining at the fastest pace in nearly seven years. The decline was not unexpected, yet the magnitude of the reversal was much steeper than anticipated.
"It is tempting to point the finger at data traffic patterns, 5G monetization challenges, and the odds stacked against an economy struggling with persistent levels of elevated inflation," said Stefan Pongratz, Vice President at Dell'Oro Group. "Although these are, of course, important factors, we attribute the poor performance in the quarter to the clouds forming in North America. Alongside challenging 5G comparisons, the decline was amplified by the extra inventory accumulated over the past couple of years to mitigate supply chain risks," Pongratz continued
Additional highlights from the 2Q 2023 RAN report:
- Top 5 RAN suppliers for 1H23 include Huawei, Ericsson, Nokia, ZTE, and Samsung.
- Nokia recorded the largest RAN revenue share gains between 2022 and 1H23.
- Huawei's quarterly RAN share reached the highest level in three years. Huawei's 2Q23 RAN revenue share outside of North America was as large as Ericsson and Nokia combined.
- Ericsson and Samsung's RAN revenue shares declined between 2022 and 1H23.
- Regional projections are mostly unchanged; however, the short-term outlook has been revised upward in APAC excluding China and downward in the North American region.
- Global RAN revenues are expected to decline in 2023.
