Shulou(Shulou.com)11/24 Report--

Dell'Oro Group, a research and consulting firm, said there was an unexpected slowdown in the global market for radio access network (RAN) equipment that underpins the global 4G and 5G industries.

That could spell trouble for suppliers ranging from large global vendors such as Samsung, Nokia and Ericsson to smaller upstarts such as NEC of Japan and CommScope of the United States.

"The pendulum shift was not unexpected, but admittedly it was a bit faster than initially expected," Stefan Pongratz, vice president and analyst at Dell'Oro, said in a statement. The slowdown does not mean that the 5G deployment phase is over. The message we've been conveying for some time that the 5G cycle will be longer than previous technology cycles is still there. At the same time, market conditions were affected by the Asia-Pacific region (APAC) in the quarter, excluding China, Russia and Forex. "

Dell'Oro did not provide exact figures in its launch, but reported that the 2G-5G RAN infrastructure equipment market, which includes hardware and software sales, saw revenue shrink year-over-year for the first time in more than two years. It said it was the third consecutive quarter that suppliers collectively reported lower-than-expected results.

"While the RAN market is not immune to external risks, preliminary data suggest that deteriorating macro conditions, high inflation and supply chain disruptions had limited impact on RAN during the quarter," the company explained in a press release. "

While Dell'Oro doesn't provide detailed market share statistics, it does provide insight into the performance of some of the world's largest vendors. Ericsson, for example, is the largest company outside China, accounting for 39% of global RAN revenue in the first half of 2022. Nokia, meanwhile, managed to increase its share outside China in the first half of 2022.

These findings are not necessarily surprising. Ericsson reported a 13 percent increase in net sales compared to the same period last year in the second quarter. Nokia reported an 11% increase in net sales for the same period.

Meanwhile, Huawei of China, which has long been the world's largest supplier of RAN equipment, reported revenue for the first half of 2022 fell 5.9 percent from last year, the lowest level in five years. Huawei continues to face tough sanctions from the United States as global regulators increasingly oppose its products.

But an overall slowdown in demand for RAN products could affect nearly all vendors worldwide if it indicates that interest in new wireless devices is slowing among network operators worldwide. In the U.S., for example, operators continue to race to build fast 5G networks in their new mid-band spectrum assets, but they have struggled to extract more profits from those networks. To date, fixed wireless access has become the first large 5G use case in the United States.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.