“We are still operating in unchartered territories but at this point, it appears that the market sentiment for infrastructure investments is improving and the nadir is now in the past,” said Stefan Pongratz, Vice President and analyst with the Dell’Oro Group.
“The network security market was still in the grips of the pandemic in 2Q20,” said Mauricio Sanchez, Research Director, Network Security and Data Center Appliances. “We foresee the current market dynamics to continue in 3Q20 and only begin shifting again late 2020 or early 2021
“The major U.S. and China based Cloud service providers have accelerated expansion of server capacity to meet the demands of remote work and learning,”said Baron Fung, Research Director at Dell’Oro Group. “However, signs of a digestion cycle of lower growth in the second half 2020 may be imminent as the recent build-up is potentially leading to Cloud capacity and component inventories in excess of demand,” explained Fung.
“Fiber expansion projects continue to expand around the world, as evidenced by continued strong demand for OLT ports,” said Jeff Heynen, Sr. Research Director, Broadband Access and Home Networking. “The sustained fiber investments are a clear sign that providers realize just how critical premium residential broadband access is to their business,” explained Heynen.
“Government funding is clearly supporting the Wireless LAN market,” said Tam Dell’Oro, Founder, CEO, and Wireless LAN Analyst at Dell’Oro Group. “We expected overall market sales to decline well into the double-digits year-over-year, but actual results were much stronger declining only 12 percent with governments’ rapid responses.
Dell’Oro Group’s Jeff Heynen, vice president, broadband access and home networking, echoed Rutledge’s sentiments on Charter’s broadband expansion into rural areas. “Charter is really going to have an opportunity to expand its subscriber base well beyond what it could without the auction, despite the fact that it won fewer markets than most people were expecting,” Heynen said.
The company had previously expected revenues from Open RAN hardware, baseband and software elements to hit about $200 million this year, but now expects that figure to be about $300 million, notes Stefan Pongratz, VP and head of Dell’Oro’s Mobile RAN market and Telecom Capex research programs in this blog.
Open RAN technology sales in 2020 look like they will be about 50% higher than previously expected, according to analyst company Dell’Oro.
The small cell share of the total RAN market has grown from less than 5 percent in 2014 to 10-15 percent in 2019, according to research by Dell’Oro Group, and it is expected to fall between 15 percent to 20 percent in 2024.
Pekka Lundmark has a lot resting on his shoulders. As chief executive officer of Nokia Oyj, he’s tasked with turning around the stuttering telecoms giant’s fortunes before it misses out on the 5G revolution. Also riding on his success, however, is the ability of the world’s industrialized economies to compete with China.