Dell’Oro Group posted grim numbers for mobile core network (MCN) market revenue for Q2 as 5G revenue declined for the first time, down 8 per cent year-on-year.

The research company also reported 4G MCN revenue decreased 29 per cent and VoLTE/VoNR 7 per cent, for a total decline of 15 per cent across all three categories.

Research director Dave Bolan stated the decline in revenue strongly suggests mobile network operators (MNOs) have excess capacity to meet subscriber growth numbers, while also flagging ongoing economic headwinds as a factor.

He also cited slower growth for standalone (SA) 5G networks as a factor which will contribute to an 11 per cent decrease for MCN revenue in 2024.

“To date, there are about 58 MNOs that have launched commercial 5G SA eMMB networks. In 2022 there were 21 new 5G SA networks; in 2023, 13; and in the first half of 2024, three,” Bolan explained.

Research by STL Partners showed many previously-announced SA 5G deployments “may now never take place.” The research company included 27 pending SA or converged NSA/SA deployments in a report covering Q2, but noted many were announced some time ago and were expected to go live in earlier years.  

STL Partners expects three SA cores will go live by the end of 2024.