Q2 O-RAN revenue falls

Author: EIS Release Date: Sep 7, 2023

O-RAN and vRAN revenues declined in W2 2Q23, marking the first quarter of y-o-y contraction since 2019, says Dell’Oro.

 

“After a couple of years where Open RAN revenues exceeded expectations and advanced at an accelerated pace, the current slowdown doesn’t come as a surprise,” says Dell’Oro vp Stefan Pongratz,  “projections for 2023 were more tempered, considering that it would take time for the early majority operators to balance out the more challenging comparisons with the early adopters who fuelled the initial Open RAN wave. This is the trend we are witnessing now – growth decelerated in the first quarter and declined in the second quarter.”

 

 

 

In Europe, Open RAN revenues are on the uptick, but this was insufficient to offset the declines in Asia Pacific and North America.

 

 

The vendor landscape remains mixed, as many O-RAN-focused suppliers are not thriving as they had hoped. NEC experienced a material improvement in its O-RAN market share between 2022 and 1H23, whereas Mavenir’s Open RAN revenue share declined over the same period.

 

 

The top 4 O-RAN suppliers by revenue for the 1H23 period were Samsung, NEC, Fujitsu, and Rakuten Symphony.

 

O-RAN revenues are still expected to account for 5 to 10% of the 2023 RAN market