Mobile Networks Market Shrinks at Fastest Pace in Seven Years

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The global market for radio access networks, the gear that handles mobile communications, declined at the fastest pace in almost seven years last quarter, according to a report from Dell’Oro Group Inc, adding bad news to 5G equipment vendors already struggling with sluggish customer demand.

While the markets were expected to weaken, the magnitude of the reversal was “much steeper than anticipated” and heralds a full-year decline in global RAN revenues, said the Redwood City, California-based company, whose reports are widely watched by the industry. The sudden drop was preceded by an intense ramp-up by operators from 2017 to 2021, and somewhat more stable revenues through 2022 and into the first quarter of 2023.

The data adds pressure on suppliers already struggling with stagnating sales, as high inflation and rising interest rates are increasingly affecting operators’ spending plans. Both Ericsson AB and Nokia Oyj cut guidance in their latest earnings reports, citing a weaker demand outlook. Ericsson and Samsung Electronics Co. both saw a decline in RAN market share between 2022 and the first half of 2023, while Nokia recorded the largest revenue-share gain over the period, the report said. Chinese vendor Huawei Technologies Co’s quarterly share reached the highest level in three years.

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