Ericsson Samsung Gain Telco Gear Share as Huawei, Nokia Suffer Losses

Global spending on telecom infrastructure equipment dipped during the second quarter of 2021, but the sector remains on pace to jump up to 10% this year and surpass $100 billion in total spending, according to Dell’Oro Group.To get more latest news about ericsson, you can visit shine news official website.

Much of the deceleration in spending on a comparative year-over-year basis was due to COVID-19 impacts in 2020, Dell’Oro Group VP Stefan Pongratz said. China was also a major contributing factor to that decline “with multiple technology segments contracting on a year-over-year basis, meaning this was not confined to the radio access network (RAN) domain,” he added.

The telecom infrastructure equipment market, which includes broadband access, microwave and optical transport, mobile core, RAN, and service provider routers and switches, has notched five consecutive quarters of growth following a decline in Q1 2020, according to the analysts.

The top seven suppliers tightened their collective control over the market during the most recent quarter, capturing about 81% of all spending, up from about 80% in the previous quarter.

Huawei, despite its challenges, maintains a firm grip on the telecom market and ended the first half of 2021 with a 28.8% market share, Dell’Oro Group reports. Ericsson beat Nokia to earn the No. 2 spot with a 15% market share followed by Nokia’s 14.9% take during the first six months of the year.

ZTE ended the period with a 10.5% share, followed by Cisco with a 5.9% share, and Samsung surpassed Ciena as the sixth-largest telecom infrastructure vendor with 3.2% tailed by Ciena’s 2.9% take, the analysts concluded.
Ericsson, ZTE, Cisco, and Samsung all grew their respective shares while Huawei, Nokia, and Ciena reported declines. Comparing full-year 2020 market shares to the first half of 2021, Huawei lost 1.7%, Ericsson jumped 0.3%, Nokia lost 0.5%, ZTE gained 0.4%, Cisco increased 0.4%, Samsung grew 0.8%, and Ciena lost 0.1% of total market share.

RAN and mobile core network spending captured roughly 50% of all telecom infrastructure equipment sales during the first half of 2021, Pongratz explained. Broadband access and service provider routers and switches totaled about 30% of all spending, and microwave and optical transport captured the remaining 20%, he added.

“The positive trends that characterized the broader telecom equipment market extended into the second quarter, even if the pace of the growth slowed somewhat between the first and the second quarter,” Pongratz wrote in the report.

“Preliminary estimates suggest the overall telecom equipment market advanced 10% year over year during the first half of 2021 and 5% year over year in the quarter, down from 16% year over year in the first quarter,” he added.

Broadband access, microwave transport, mobile core networks, and RAN spending all increased by double digits during the first half of 2021, according to Dell’Oro Group’s analysis. Optical transport and service provider routers came in below expectations, but broadband access and microwave transport both achieved growth above predictions, the analysts noted.

Reduced spending from China impacted the demand for wireless and wireline-related infrastructure equipment, the analysts explained. Moreover, “ongoing efforts by the U.S. government to curb the rise of Huawei are starting to show in the numbers outside of China, not just for RAN but in other areas as well,” Pongratz explained.