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Evolved packet core revenues flatten out worldwide

05 Jun 2019
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According to a recently published report from Dell’Oro Group, a source for market information about the telecommunications, networks, and data centre IT industries, Evolved Packet Core (EPC) revenues were up only one per cent year-over-year (Y/Y) in 1Q 2019. 

Huawei, Nokia and ZTE gained market share during the quarter.

“EPC revenues grew a disappointing 1% year over year (Y/Y) for 1Q 2019 after a surprising increase of 19% Y/Y in 4Q 2018,” says Dell’Oro Group senior analyst Dave Bolan. 

“However, looking at the trailing four quarters, EPC has grown 7% Y/Y to address subscriber and data growth, as well as to prepare the network for 5G traffic. To date, all commercial 5G networks depend on EPC, and vendors are competing for these upgrades in the hopes of winning the 5G Core.

“5G Standalone networks are expected to appear in 2020 with 5G Core revenues starting in the first quarter, most likely in the Asia Pacific region. These 5G Core networks will address network slicing and multi-access edge computing.”

Additional highlights from the 1Q 2019 Wireless Packet Core quarterly report include:

  • Huawei, Nokia and ZTE gained market share during the quarter. As a result, vendor rankings for the quarter were: Huawei at number one followed by Ericsson, Cisco, Nokia, and ZTE.
     
  • Asia Pacific accounted for over one-third of the revenues for EPC in the quarter.

The Dell’Oro Group Wireless Packet Core Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices and sessions shipped for 5G Core, Traditional Packet Core equipment (GGSN and SGSN), and Evolved Packet Core equipment (MME and PGW/SGW).