A recently published report by Dell’Oro Group, shows revenues for 5G Core market (5GC) are expected to approach US$1B for 2020, with continued strong growth into 2021 as service providers ramp-up 5GC deployments.
In the second quarter of 2020, 5GC accounted for nearly 15 percent share of the Mobile Core Network revenues, states Dell’Oro Group.
This is the first quarter vendors started to report 5GC revenues, and revenues came in surprisingly strong, said David Bolan, research director at Dell’Oro Group.
“Huawei and ZTE led the charge, making them the first and second-ranked vendors for 5GC in 2Q20. Mavenir also surprised with 5GC revenues,” he said. “The ramp-up in the second half of 2020 has already begun, with T-Mobile commercially launching its 5G Standalone network in August, recognizing Cisco and Nokia, as their 5GC suppliers.”
Bolan notes other service providers expected to launch nationwide 5G Standalone networks in the second half of 2020 include the three service providers in China. Huawei, ZTE, Ericsson and Nokia as their 5GC suppliers, and the South Korean service providers, with Ericsson, Nokia, and Samsung, widely expected to be the 5GC suppliers.
Other highlights from the quarter:
4G/5G Core network revenues grew 15 percent Y/Y, for the trailing four quarters ending in 2Q20
IMS Core VoLTE revenues grew 8 percent Y/Y, for the trailing four quarters ending in 2Q20
Network Function Virtualisation exceeded 50 per cent, for the first time in 2Q20