Global mobile core network market up 14% year-on-year Ericsson shares slightly ahead of Huawei

According to a recent report by Dell’Oro Group, a market research firm, revenue from the global mobile core network market grew 14% year-on-year in the four quarters to the third quarter of 2019. Ericsson and Huawei were Top 2 vendors during the reporting period.

According to Dell’Oro Group, Ericsson’s share of the mobile core network market was 26% during the reporting period, with Huawei at 25%, Nokia at 15%, ZTE at 10% and Cisco at 7%.

Global mobile core network market up 14% year-on-year Ericsson shares slightly ahead of Huawei

Source: Dell’Oro Group.

The growth in telecom operators’ investment in mobile core network technology is not surprising. Many operators plan to deploy separate 5G networks in 2020 and 2021.

David Bolan, senior analyst at Dell’Oro Group, said Ericsson’s strong performance during the reporting period was helped by North American operators. “No operator has deployed a 5G independent core network yet, but each carrier has plans to deploy it. He said.

He also noted that the Asia-Pacific region accounts for 35 percent of global mobile core network revenue, as many operators in the region are accelerating their preparations for the launch of 5G independent technology.

“More than 50 telecom operators already offer 5G services through the 5G NSA architecture, and we expect 5G SA services with 5G core networks to become a reality by 2020. David Bolan said.

The analyst also said Cisco, which ranks fifth, has been trying to secure deals outside the North American market. But he points out that Cisco did win a major victory on the mobile core network at Rakuten Mobile in Japan. Rakuten Mobile plans to launch a commercial mobile network in April 2020.

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