5G is not expected to positively impact operator revenues for at least three years, according to a new report from Dell'Oro Group.
Dell'Oro Group Inc
The China-based firm held a commanding lead in global sales over rivals Ericsson, Nokia, and Cisco. Combined, those four vendors controlled 86 percent of the market.
The one-year delay is because initial 5G network launches are using the non-standalone architecture that relies on already deployed 4G LTE evolved packet core technology.
Research group sees reasons to be cheerful as mobile infrastructure market set to see turnaround after three consecutive years of declining revenues thanks to 5G New Radio.
Data center interconnect equipment revenue will increase 85 percent over the next five years, from $2.7 billion in 2017 to $5.1 billion in 2022, according to Dell’Oro Group.
The Chinese vendor managed to shrug off procurement challenges during the first half of the year tied to a U.S. government ban on ZTE acquiring components from U.S. manufacturers.
The vendor would have been No. 3 behind Huawei and Ciena in worldwide optical networking hardware sales. Instead, Nokia snared that spot.
Most of that 5-year growth will come from an increased use of wavelength division multiplexing (WDM) to support the extension of higher network speeds closer to end users.