Global Mobile Market Faces Steep Decline in Radio Access Network (RAN) Revenues

Stefan Pongratz, Vice President at Dell’Oro Group, commented on the situation, stating, “It is tempting to point the finger at data traffic patterns, 5G monetization challenges, and the odds stacked against an economy struggling with persistent levels of elevated inflation.” Pongratz emphasized that while these factors are indeed significant, the poor performance in the quarter can be attributed to issues arising in North America. He further explained that alongside the complexities of 5G comparisons, the decline was exacerbated by excess inventory accumulated over the past few years to mitigate supply chain risks.

According to the Dell’Oro Group’s recent report, the leading RAN suppliers for the first quarter of the year were Huawei, Ericsson, Nokia, ZTE, and Samsung. Among these, Nokia held the largest RAN revenue share between 2022 and the first half of 2023. Notably, Huawei’s quarterly RAN share reached its highest level in three years during the second quarter of 2023. The Chinese technology giant’s revenue share for this period outside of North America rivaled the combined figures of Ericsson and Nokia. However, Ericsson and Samsung faced declining RAN revenue shares from 2022 to the first half of 2023.