Telecom equipment market overcomes slow start for upbeat 1H20: Dell’Oro
Dell’Oro Group has tabulated its second quarter 2020 assessments of the various areas it covers and determined that overall, the telecom equipment space managed year-on-year growth despite the challenges of the COVID-19 pandemic. The market research firm says, via a blog posted by analyst Stefan Pongratz, that spending on telecom gear in its areas of research – including Broadband Access, Microwave & Optical Transport, Mobile Core & Radio Access Network, Service Provider (SP) Router & Carrier Ethernet Switch (CES) – increased 4% against the first six months of last year.
The aggregate good news rests on a strong second quarter for the telecom equipment market after a slow first quarter. Mobile infrastructure led the way, while positive steps from Optical Transport and SP Routers & CES also helped. Increases in these segments, principally from Chinese operators, offset weaker 2Q20 demand for Broadband Access and Microwave Transport products, according to Dell’Oro. The market research firm notes that while work-at-home/stay-at-home initiatives have increased broadband service demands, most operators appear to have succeeded in responding without buying much in the way of additional broadband access equipment.
Looking at the first six months as a whole, double-digit increases in mobile infrastructure spending, driven by 5G roll-outs in China, proved the primary catalyst for the relatively sunny outlook. Revenues for Broadband Access, Microwave and Optical Transport, and SP Routers & CES slipped versus the year-ago period, Dell’Oro states.
Despite the lingering effects of the pandemic, the Dell’Oro’s analysts expect the relatively positive momentum of the second quarter to continue into the second half of 2020. The analysts expect the overall telecom equipment market will grow 5% in 2020 versus its 2019 level.
From an equipment vendor perspective, Dell’Oro reports that individual market shares have remained stable so far in 2020. Huawei, Nokia, Ericsson, ZTE, Cisco, Ciena, and Samsung ranked as the top seven suppliers. Revenues for the first five of these companies increased year-on-year, Dell’Oro reports.
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Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
You can connect with Stephen on LinkedIn as well as Twitter.