Pictured: Stefan Pongratz, vice president with Dell’Oro Group
The radio access network (RAN) market is set for healthy growth over the next five years, a leading analyst has predicted.
Stefan Pongratz, vice president with independent consulting firm Dell’Oro Group, said the market is developing globally at its fastest pace in nearly ten years, and is on track to approach revenue levels last seen when Chinese operators rolled out 3G.
“We believe that there is room for expansion over the near term as the early adopters continue to roll out 5G at an extraordinary pace,” he said. “The shift from 4G to 5G is accelerating at a torrid pace and much faster than expected. This is not because operators expect to raise ARPU or because they are anticipating significant near-term revenue upside from new applications. Instead, the main driver is on the supply side, and the ability of the operators to reduce cost-per-bit and to differentiate on the packaging with larger data plans.”
Pongratz said he expects the Asia Pacific region to dominate the overall RAN revenue mix, with total macro and small cell radio shipments projected to surpass 50 million units over the forecast period. He added that mmWave investments are growing rapidly, with total revenues on track to more than double by 2025. Fixed Wireless Access (FWA) RAN investments, including mobile network and dedicated fixed networks, are projected to comprise a growing share of the overall RAN capex envelope over the next five years, he concluded, reflecting the size of the potential upside, various technological advancements and improving market sentiment for both basic and high-performance connectivity.
Check these links for further info: