#United States #Redwood City #5G Technology #Dell'Oro Group #Telecommunications

5G Standalone: A Revenue Revolution in Telecommunications

In an era defined by rapid technological advancement, a recent report by Dell'Oro Group reveals compelling insights about the financial trajectory of 5G Standalone (SA) technology. Currently, carriers have invested 208% more in 5G Standalone than they did in the 4G Core at a comparable stage of technological evolution. This notable investment surge raises important questions around the sustainability of this growth and the future implications for mobile network operators.

The Current State of 5G Standalone Technology

Siân Morgan, a Senior Director at Dell'Oro Group, highlights the intricacy behind the substantial revenue generated by 5G SA. According to Morgan, the 3GPP standards' progression has caused a notable gap between 5G Radio Access Network (RAN) expenses and the actual execution of the 5G SA. As a result, the financial influx from 5G SA has outpaced that observed at the same point in the lifecycle of LTE Evolved Packet Core (EPC) technology.

What is striking is that while 5G SA revenues have not yet reached their peak, many mobile network operators are still in the early phases of making these services widely available. The challenges presented by memory shortages and soaring server prices are contributing to a delay in vital core transformation projects. Amidst these challenges, a silver lining exists—the anticipation of a resuming trajectory for double-digit revenue growth in 5G Mobile Core Networks, anticipated to re-emerge by 2028.

Future Prospects and Challenges

The transformation into 5G involves complex upgrades and financial considerations that burden carriers worldwide. As the report suggests, the next couple of years will see a slowing revenue growth due to the current trends of postponing transformation initiatives. Nevertheless, forecasts indicate that the EMEA (Europe, Middle East, and Africa) region is poised to become a driving force behind Mobile Core Network revenue growth in the coming five years.

While advancements in 4G Core technology may seem overshadowed by 5G, it's noteworthy that the 4G core revenue experienced an uptick in 2025, in part coinciding with adjustments in forecasting within this sector. This indicates a resilience within the 4G market, even as operators pivot toward 5G solutions.

The Role of AI and Market Dynamics

The integration of Artificial Intelligence (AI) into mobile core networks is set to redefine operational dynamics. While AI presents promising opportunities for enhanced efficiency and revenue generation, it concurrently poses risks of rising operational costs. The delicate balance between maximizing operational efficiency and managing elevated cost structures will be critical for telecommunications operators moving forward.

The Dell'Oro Group's quarterly report on Mobile Core Networks offers a comprehensive overview of spending patterns and revenue generation across various telecom vendors and geographical regions. The data extends beyond just core technologies, encompassing Traditional Packet Core, Evolved Packet Core, 5G Packet Core, and more. This foresight empowers stakeholders to craft informed decisions as they navigate an evolving market landscape.

Conclusion

As we look to the future, the compelling data presented by the Dell'Oro Group magnifies the importance of strategic investments in 5G technologies. The ongoing complexities surrounding operational costs, server pricing, and the deployment of core transformation projects will undoubtedly shape the telecommunications sector's trajectory. With recovery expected within the next few years, industry players are urged to adapt swiftly to capitalize on the blooming prospects that lie within the realm of 5G Standalone technology.