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Mavenir ready to prove it is possible to transform mobile network economics

TBR perspective  

Mavenir’s message is resonating with the market, and its reputation among CSPs is strengthening. In a few short years, the upstart vendor has gone from an M&A amalgamation of disparate businesses to a cohesive, relevant vendor that is now being considered alongside incumbent Tier 1 network vendors for projects at leading CSPs worldwide.

Mavenir is a legitimate contender to supply solutions that will comprise the new webscale-like network architecture CSPs are eager to implement to stay competitive and participate in new value creation in the digital era. The vendor’s greenfield play to provide cloud-native solutions is unique and is a key differentiator from incumbent OEMs that continue to push their relatively expensive, inflexible and closed systems. CSPs are intrigued by Mavenir’s virtualization offerings, not only with the low price points and total cost of ownership (TCO), but also with the performance of their systems in trials and now, with vRAN in some select commercial production environments.

TBR believes Mavenir will become one of the leading telecom network vendors in the digital era and will take measurable share from incumbent vendors during the 5G network build cycle, not only in RAN, but also in the mobile core and digital enablement-related platforms. Though Mavenir is a small fish in a sea of goliaths, the company is able to hold its own by trumpeting its software-first mantra as a means of redefining mobile network economics.

Mavenir’s assessment of where the market needs to go is spot on. CSPs must evolve to become more webscale-like in nature, adopting a network architecture that is dynamic, agile and able to support the demands of the digital era as well as new business models that can be scaled and supported at fundamentally different economics compared to the traditional architecture. More of the same will not work anymore, and CSPs must think and act differently to stay relevant and profitable in the digital era. CSPs are intrigued by the claims Mavenir is making pertaining to radically different mobile network economics and there is desire among CSPs to hear from the vendor about how it can deliver on those promises.

TBR believes Mavenir’s biggest, most impactful play is in the RAN space, which is an approximately $40 billion market and is ripe for significant disruption. RAN is the domain that will be the catalyst to transform Mavenir from a relatively small vendor by revenue (around $500 million this year) into a multibillion-dollar global powerhouse.

Mavenir provided a corporate strategy overview and updates on each of its business units at its third annual analyst day. The vendor is well aligned with underlying trends in the telecom industry, particularly network virtualization and open infrastructure. Mavenir now claims to have product offerings across several network infrastructure domains, including RAN, mobile core, IMS (particularly, VoLTE and RCS), Unified Communications & Collaboration (Mobile Business Fabric), network security and digital enablement platforms, such as for private networks, OSS/BSS and mobile advertising (Aquto). The company’s software-first, hardware-agnostic approach is timely as communication service providers (CSP) accelerate their transformations into digital service providers.

Leading operators are accelerating their 5G timetables, justifying the investment due to the competitive advantage 5G technology provides

HAMPTON, N.H. — The efficiency gains offered by 5G are spurring operators to accelerate their deployment timeframes, according to TBR’s 3Q18 5G Telecom Market Landscape.

“5G is up to 10 times more efficient on a cost-per-gigabyte basis compared to LTE,” said TBR Telecom Senior Analyst Chris Antlitz. “This is the driving force behind most operator commitments to deploy the technology thus far. With data traffic continuing to scale globally, operators will need to invest in new technologies, such as 5G, that can help them more cost-effectively support that traffic while providing an overall better quality of experience for their customers.”

TBR estimates over 85% of 5G capex spend through 2020 will be driven by operators in four countries: the U.S., China, Japan and South Korea. Most Tier 1 operators in these countries have aggressive 5G rollout timetables and intend to leverage the technology for fixed wireless broadband and/or to support their mobile broadband densification initiatives. The seamless software upgradability of new RAN platforms to 5G will facilitate deployment at incremental cost, keeping overall spend scaling quickly but at a relatively low level compared to prior RAN generation upgrades.

TBR’s 5G Telecom Market Landscape tracks the 5G-related initiatives of leading operators and vendors worldwide. The report provides a comprehensive overview of the global 5G ecosystem and includes insights pertaining to market development, market sizing, use cases, adoption, regional trends, and operator and vendor positioning and strategies.

For additional information about this research or to arrange a one-on-one analyst briefing, please contact Dan Demers at +1 603.929.1166 or [email protected].

 

ABOUT TBR

Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, and telecom vendors and operators. Serving a global clientele, TBR provides timely and actionable market research and business intelligence in a format that is uniquely tailored to clients’ needs. Our analysts are available to address client-specific issues further or information needs on an inquiry or proprietary consulting basis.

TBR has been empowering corporate decision makers since 1996. For more information please visit www.tbri.com.