Dell’Oro Group
Nokia’s 760 global private networking contracts are mostly 4G-LTE Advanced
Backgrounder:
Private Wireless Radio Access Network (RAN) revenue growth slowed in the fourth quarter of 2023 on a year-over-year basis. However, full-year revenues accelerated by approximately 40% in 2023, propelling private wireless to comprise around 2% of the overall RAN market.
“Private wireless RANs are now growing at a formidable pace, in contrast to public RAN and enterprise WLAN – both segments are projected to contract in 2024,” said Stefan Pongratz, Vice President at Dell’Oro Group in April.
The top 3 Private Wireless RAN suppliers in 2023 were Huawei, Nokia, and Ericsson. Excluding China, they were Nokia, Ericsson, and Samsung.
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Nokia leads in Private RANs:
Nokia recently told Fierce Network that it signed 30 new private networking contracts in the second quarter of 2024. Nokia has said that it has signed more than 760 private network contracts around the world. NGIC, Sigma Lithium and Solis are some of the most recent names it has signed.
Nokia said that 78% of its private network business is based on 4G LTE-Advanced [1.], compared to 18% being 5G only, and the remaining 4% combining the two broadband cellular technologies.
Note 1. In October 2010, LTE-Advanced successfully passed the ITU-R’s evaluation process and was found to meet or exceed IMT-Advanced requirements. It was standardized a “IMT Advanced,” which support low to high mobility applications and a wide range of data rates in accordance with user and service demands in multiple user environments. IMT Advanced also has capabilities for high quality multimedia applications within a wide range of services and platforms, providing a significant improvement in performance and quality of service.
Image courtesy of Research Gate
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David de Lancellotti, VP of enterprise campus edge business at Nokia talked to Fierce about Nokia’s performance in the private networking space. “Thirty in Q2, and roughly 50 — a little more than 50 — in the first half,” he said of contracts signed.
“We kind of jumped into this a bit earlier than anybody else,” Nokia’s de Lancellotti explained. “I think we’ve always taken a real service provider approach in terms of quality, in terms of feature set [and] in terms of roadmap,” while noting Nokia’s “real drive to pick up the enterprise space.”
Industry verticals – transportation, energy and manufacturing – continue to “lead the way” for private networking contracts in Q2. “When we talk about transportation, I think that’s the port side of business, which continues to be strong for us,” David said.
References:
https://www.fierce-network.com/wireless/nokia
Private Wireless RAN Revenues up ~40 Percent in 2023, According to Dell’Oro Group
https://en.wikipedia.org/wiki/LTE_Advanced
https://www.itu.int/en/ITU-R/study-groups/rsg5/rwp5d/imt-adv/Pages/default.aspx
https://www.researchgate.net/figure/Network-architecture-of-LTE-Advanced_fig1_333886291
Dell’Oro: Mobile Core Network market driven by 5G SA networks in China
According to a recently published report from Dell’Oro Group, the total Mobile Core Network (MCN) and Multi-access Edge Computing (MEC) market revenues for 1Q 2022 rebounded to a positive year-over-year (Y/Y) growth rate after the decrease in 4Q 2021 which was the first decrease since 4Q 2017.
The MCN market growth was driven by an extremely high double-digit percentage Y/Y revenue growth rate in the 5G MCN market overcoming the Y/Y revenue declines in the 4G MCN and IMS Core markets. For the MCN market regionally, the China region had a high growth rate while the MCN market excluding China had a negative growth rate for the quarter.
“With the continued aggressive build-out of 5G Standalone (SA) networks in China, the China region in 1Q 2022 substantially increased its share of the 5G MCN market over last quarter,’ stated Dave Bolan, Research Director at Dell’Oro Group. “At the end of 1Q 2022, we have identified 25 Mobile Network Operators (MNOs) that have commercially launched 5G SA Mobile Broadband networks (MBB) with services available to consumers. The 5G Core vendors (in alphabetical order) include Cisco, Ericsson, Huawei, NEC, Nokia, Samsung, and ZTE. We have identified 150 MNOs with 5G Core contracts with the above vendors plus Mavenir. There are still more 5G Core contracts that vendors have acknowledged without revealing the associated MNOs.
“We see fewer 5G Core network launches slated for 2022 as compared to 2021 when 16 networks were launched. However, many are being readied for 2023 launches and we project mid-single-digit percentage Y/Y growth rates for the balance of 2022. One of the most anticipated and publicized 5G Core launches is Dish Wireless – the first to run 5G Core on the Public Cloud. The company is preparing to launch in many cities by mid-June 2022 to meet regulatory coverage requirements. In early May 2022, Dish had a soft launch in its first city, Las Vegas. Nokia is the primary 5G Core vendor.
“Multi-access Edge Computing deployed by MNOs has barely scratched the surface in spite of all the hype, except for the China region, which has deployed thousands of MEC nodes throughout their MNO networks, with a mix of Public MEC and Private MEC sites,” continued Bolan.
Additional highlights from the 1Q 2022 Mobile Core Network and Multi-Access Edge Computing Report:
- The top two vendors for the MCN, 4G MCN, and IMS Core markets were Huawei and Ericsson.
- The top two vendors for the 5G MCN market were Huawei and ZTE.
- Nokia and Ericsson had the highest Y/Y growth rates for the 5G MCN market coming from a low small base. However, Huawei had the highest dollar revenue gain, with a lower Y/Y growth rate coming from a larger base.
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, and IMS Core including licenses by Non-NFV and NFV, and by geographic regions. To purchase this report, please contact us at [email protected].