Mobile Core Network sector slumps in 2023, Dell’Oro Group report reveals
The 4Q 2023 Mobile Core Network (MCN) market had its weakest revenue growth since 1Q 2017, according to a recent Dell’Oro Group report. Despite this, six new 5G Standalone networks launched, offering some positive news in the quarter.
In the industry overview, the Dell’Oro Group research director Dave Bolan commented on the market’s performance, noting a downturn in year-over-year revenues that resulted in a financially challenging 2023.
All regions reported slowdowns, except North America and Europe, Middle East and Africa (EMEA), which achieved positive growth in 2023. Bolan’s comments also point to the decrease in new 5G Standalone (5G SA) network launches in 2023—with figures dropping to 12 from the previous year’s 18.
“On a positive note, six of the twelve 5G SA deployments in 2023 were deployed in 4Q 2023,” adds Bolan. “As a result, we maintain a positive outlook for 2024, anticipating that the pace of 5G SA deployments will continue to accelerate into 2024. We are cautiously optimistic the MCN market for 2024 will be marginally higher than 2023”.
The 4Q 2023 Mobile Core Network and Multi-Access Edge Computing Report also reveals other insights. MCN vendors like Huawei, Ericsson and Nokia increased their global market share in the MCN market and 5G MCN markets in 2023. Currently, 50 MNOs have operational 5G SA eMBB networks. While the 5G MCN market expanded in 2023, the growth rate was slower compared to 2022, with positive growth seen in all regions except China, the report notes.
Despite facing a year with declining revenues, the mobile core network (MCN) market experienced a few achievements in the latter part of 2023, with six new 5G Standalone (5G SA) networks becoming operational in the fourth quarter.
This development brings optimism in a challenging market, according to the Dell’Oro Group.
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