Q3 RAN Revenues Experience Decline

RAN revenues witnessed a second consecutive quarter of steep declines in 3Q 2023, primarily driven by reduced RAN investments in North America, according to Dell’Oro. This decline comes after a significant increase of 40-50% between 2017 and 2021.

If America was excluded, worldwide RAN revenues would have recorded a third consecutive quarter of growth. Dell’Oro vice president Stefan Pongratz explains, “This remarkable RAN/capex decline in the US market is partially offset by more favorable conditions elsewhere.”

Despite the decline in North America, there are positive trends in other regions. The 5G ramp in India and investment in the Middle East and Africa are contributing to growth in RAN revenues.

Mobile Broadband (MBB) investments remain fairly elevated relative to pre-5G levels in most of the advanced 5G markets, with the exception of North America. This indicates continued investment and adoption of 5G technology in these regions.

In 3Q 2023, the top RAN suppliers include Huawei, Ericsson, Nokia, ZTE, and Samsung. Ericsson and Nokia have gained revenue share outside of North America, solidifying their positions in the global market.

Looking ahead, the RAN market is expected to decline in 2023 and 2024, following its peak in 2021. While the pace of the decline is expected to moderate in 2024, conditions will remain challenging, especially as the pendulum swings towards the negative in India.