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Dell'Oro Group Reports on 5G Mobile Core Networks

In a newly published report by Dell'Oro Group, a reputable market intelligence firm in telecommunications, the dramatic increases in revenue from 5G Mobile Core Networks (MCN) outside of China have been made clear. The findings indicate robust double-digit growth in regions such as North America and EMEA, where revenue increased by 20% in the first quarter of 2026. This growth trend stands in stark contrast to the situation in China, where revenues have dropped significantly, marking the worst quarter since 5G's introduction.

Growing Market Outside China

According to Siân Morgan, Research Director at Dell'Oro Group, the growth trajectory concerning 5G has been positive in North America and Europe, the Middle East, and Africa (EMEA). This trend has continued since 2025 when the revenue surged significantly. In contrast, the telecom market in China is anticipated to experience a sharp decline in spending through 2026, primarily due to initial heavy investments in 5G Standalone (5G SA) infrastructure.

Key Findings from the Report

The report not only highlights revenue trends but also points out critical market dynamics:

• - Increased Share for Industry Leaders: Major players in the telecommunications sector such as Huawei, Ericsson, and Nokia have expanded their market share, successfully pushing aside smaller competitors in the 5G core network arena. Morgan emphasized that despite rising server costs, these top firms have continued to dominate.
• - Multi-Access Edge Computing (MEC) Market Growth: The MEC sector also saw promising growth, with China leading the way in implementations.
• - 4G Packet Core Gains: Interestingly, revenue from the 4G Packet Core grew at a rate faster than the overall market, fueling demand for maintaining older technologies alongside new innovations.

Regional Insights

Nokia emerged as the biggest winner in gaining market share in the MCN segment outside of China. Meanwhile, Ericsson triumphed globally in the IMS market, and Huawei excelled in gaining shares outside of North America. However, revenue from 5G MCN has not yet reached the levels achieved during the 4G era, indicating potential for future growth as operators push towards automation and seek to elevate Average Revenue Per User (ARPU).

Future Outlook

As we look to the future, the report projects continued expansion in both core network and MEC markets, with rising demands driving telecom firms towards operational automation and innovative service offerings, specifically 5G Advanced services.

The insights from the report will profoundly impact decision-making within telecommunications companies as they navigate the complexities of an evolving technological landscape. The Dell'Oro Group's Mobile Core Network and Multi-Access Edge Computing Quarterly Report provides extensive data covering revenues, shipment volumes, and market prices across various geographic regions and product categories.

For industry players, understanding these dynamics is crucial for strategic planning and competitive positioning in an increasingly complex global market.

About Dell'Oro Group

Dell'Oro Group specializes in strategic quantitative and qualitative analysis in the fields of telecommunications, security, enterprise networks, and data center infrastructure, aiding businesses in making informed, fact-based decisions. For more details about their reports, visit Dell'Oro Group.