“Excluding some pockets of strength at certain high-end enterprises and industry verticals such as government and public sector, demand for campus switches was generally suppressed by the COVID-19 pandemic,” said Sameh Boujelbene, Senior Director at Dell’Oro Group.
At a first glance it might appear overly optimistic with a baseline scenario suggesting a new technology, which remains relatively untested and some officials believe would need a decade to get off the ground, would be able to become a billion-dollar market comprising a sizable portion of the overall RAN segment in just half a decade,” said Stefan Pongratz, Vice President and analyst with the Dell’Oro Group.
“An early control of the COVID-19 pandemic in China, combined with government stimulus as well as a strong demand from Chinese Cloud Service Providers (SPs) boosted revenue growth in the region in the second quarter,” said Sameh Boujelbene, Senior Director at Dell’Oro Group. “Additionally, this strong demand in China was not hindered by major supply issues as Chinese vendors were so far able to secure enough inventory to meet the demand in the quarter. Meanwhile, revenue outside of China were challenged by both supplies as well as demand headwinds,” added Boujelbene.
This is the first quarter vendors started to report 5GC revenues, and revenues came in surprisingly strong. Huawei and ZTE led the charge, making them the first and second-ranked vendors for 5GC in 2Q20. Mavenir also surprised with 5GC revenues,” stated David Bolan, Research Director at Dell’Oro Group. “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 added.
Most of the decline in the Microwave Transmission market was due to lockdowns instituted by governments to stop the spread of COVID-19,” stated Jimmy Yu, Vice President at Dell’Oro Group. “As a result of these national lockdowns, microwave manufacturers often faced difficulties in obtaining components, shipping products to customers, installing equipment, and obtaining permits and licenses. We believe with fewer lockdowns in second half of 2020, the demand for microwave gear will improve,” continued Yu.
COVID-19 has not killed the radio access network (RAN) market. In fact, the Dell’Oro Group just upwardly revised its projections for the sector, saying the RAN market will grow at a healthy pace over the next three years. Cumulative investments over the 2019-2024 forecast period are expected to be over $200 billion.
But while the acquisition will no doubt open new doors for HPE, it also stands to raise Aruba’s profile in the competitive SD-WAN market, and position the vendor to directly challenge Cisco, said Shin Umeda, VP at Dell’Oro Group, in an interview with SDxCentral.
Trials are well underway around the world as the industry progresses to 5G operating in standalone mode, and “vendors and service providers are working together to learn about the intricacies of implementing 5G SA, which primarily means implementing the 5G core for 5G New Radio (NR) base stations,” Dave Bolan, research director at Dell’Oro Group, wrote in a recent report.
“Charter’s entry is a big deal because it’s the first cable operator to officially announce its intention to apply for RDOF funds,” said Dell’Oro Group’s Jeff Heynen, senior research director for broadband access and home networking, in an email to FierceTelecom. “It certainly won’t be the only cable operator to do so, but it will likely be the largest. I think there will be a number of cable operators—think NCTC members—that will also apply for RDOF funds.