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Top vendors positioned to capitalize on TIS market trends

Communication service providers (CSPs) are in the middle of a robust investment cycle that requires significant spend on telecom infrastructure services (TIS). Current trends are expected to play out over the remainder of this decade. Spend is expected to peak in the next few years.

 

Join Senior Analyst Michael Soper for a deep dive into growth catalysts such as 5G deployments globally, network and IT application migration to the cloud, and an influx of government funds to close the digital divide. Michael will also look at geopolitics driving government spend and CSPs’ actions to rip and replace Huawei infrastructure over the next few years.

 

In this FREE webinar you’ll learn:

  • Key growth drivers and growth detractors expected in the TIS market through 2026, according to findings in TBR’s Telecom Infrastructure Services Global Market Forecast 2021-2026
  • How government spend and geopolitics will influence the TIS market
  • Which vendors are positioned to capitalize on trends in the TIS market

 

Mark your calendars for Thursday, June 23, 2022, at 1 p.m. EDT,
and REGISTER to reserve your space.

 

Related content:

  1. Free copy: Top 3 Predictions for Telecom in 2022

 

Click here to register for more TBR Webinars

WEBINAR FAQs

 

 

 

TBR releases exclusive webinar content from June 2021

HAMPTON, N.H. (July 6, 2021) — Technology Business Research, Inc. (TBR) announces on-demand availability of its June 2021 webinars, featuring discussions on 5G’s impact on the U.S. wireless market, expectations for the PC market in 2021 and 2022, the value of cloud during the pandemic, and the influence of geopolitics on the telecom infrastructure services (TIS) market.

5G brings massive disruption to the U.S. wireless market

Principal Analyst Chris Antlitz and Analyst Steve Vachon give an in-depth, exclusive review of TBR’s most recent U.S. Mobile Operator Benchmark during which they discuss the financial and go-to-market performance of leading U.S. wireless operators as well as recent key developments impacting the U.S. market.

2021 PC market predictions

Principal Analyst Ezra Gottheil and Analyst Eric Costa discuss the state of the PC market, including impacts expected on revenue growth, profitability and unit sales, and what lies ahead for the remainder of 2021 and 2022.

Cloud vendors make the most of their COVID-19 stimulus

Principal Analyst and Practice Manager Allan Krans, Senior Analyst Nicki Catchpole, Senior Analyst Evan Woollacott and Senior Analyst Catie Merrill give a glimpse into the continued acceleration of cloud adoption as the COVID-19 pandemic abates. The discussion sheds light on how the value of cloud was reinforced during the pandemic, leading to accelerated spending as conditions have stabilized and improved in the first half of 2021.

Telecom infrastructure insights: 2Q21 insights from TBR’s Telecom team

Senior Analyst Michael Soper discusses results from TBR’s Telecom Infrastructure Services Global Market Forecast for 2020-2025, including key growth drivers and detractors for the TIS market and how government spend and geopolitics will influence the market.

TBR webinars are typically held Wednesdays at 1 p.m. EST and include a 15-minute Q&A following the main presentation. To find out what we are discussing next month, check out the Webinars page of our website.

Interested in a one-on-one discussion with one of the above subject-matter experts or a private webinar with one or more of our teams?

Contact us today for more information on our free 90-day trial

Limited set of vendors to continue benefiting from China’s 5G rollout

China’s 5G deployment was the driving force behind TIS market growth in 2020

Following the temporary shutdown associated with China’s initial battle with COVID-19 in 1Q20, China’s CSPs accelerated the rollout of 5G RAN, deploying over 700,000 5G base stations in 2020, in addition to the 100,000 base stations that were rolled out in 2019. TBR believes the country is nearing peak 5G RAN deployment levels after growth for Huawei, ZTE and China Communications Services (CCS) slowed in 4Q20, but China’s investment in 5G will remain elevated in 2021, with between 600,000 and 1 million base stations set for deployment as the government makes 5G a centerpiece technology of its newest national infrastructure development initiative.

A significant and growing portion of China’s government stimulus is being allocated to enable the ICT sector to accelerate infrastructure and ecosystem development. China has earmarked over $1.4 trillion for ICT initiatives over the next five years. These investments will primarily benefit CCS, Huawei and ZTE, though Ericsson and smaller China-based vendor CICT are also taking part in 5G RAN builds. China’s government heavily influences CSPs’ contract allocation and prioritizes business for domestic firms. Huawei was allocated the bulk of business in the 5G cycle, increasing its share from the LTE cycle, and TBR expects Huawei will maintain its leading market share, despite supply chain disruptions.

TBR believes that due to stockpiling, China’s ICT ecosystem has sufficient chipsets to meet the country’s 5G RAN deployment targets in 2021, which suggests the supply chain encumbrances instituted by the U.S. government are not having a significant impact on China’s original 5G deployment timelines.

Register today for an exclusive TBR webinar examining TBR’s Telecom Infrastructure Services (TIS) Global Market Forecast for 2020-2025, including the expected market impact of unprecedented government support in telecom over at least the next five years and increasing support, and mandate, from Western-aligned governments for CSPs to swap out gear from Huawei and ZTE.

Telecom infrastructure services: 2Q21 insights from TBR’s Telecom team

5G and geopolitics take center stage in the development of the TIS market

Unprecedented government support will boost the ICT sector over at least the next five years, with the telecom industry poised to be one of the key beneficiaries of the stimulus. Western-aligned governments will also increasingly mandate and provide support for CSPs to swap out gear from Huawei and ZTE, and these projects could take several years to complete.

Join Telecom Senior Analyst Michael Soper for a webinar examining TBR’s Telecom Infrastructure Services (TIS) Global Market Forecast for 2020-2025, including the expected impact of these events on the market.

Don’t miss:

  • Key growth drivers and growth detractors in the TIS market from 2021-2025
  • How government spend and geopolitics will influence the TIS market
  • Which vendors are well-positioned to capitalize on trends in the TIS market

Register today to reserve your space

TBR webinars are held typically on Wednesdays at 1 p.m. ET and include a 15-minute Q&A session following the main presentation. Previous webinars can be viewed anytime on TBR’s Webinar Portal.

For additional information or to arrange a briefing with our analysts, please contact TBR at [email protected].

WEBINAR FAQS

COVID-19 will have a relatively limited impact on the TIS market overall as CSPs remain committed to and focused on deploying new technologies

Strong investments by webscales and China-based telcos will carry the telecom infrastructure services (TIS) market through the COVID-19 crisis relatively intact, with a shallow decline of relatively short duration expected in the overall market followed by a robust, sustained recovery as CSPs in other key countries accelerate their infrastructure initiatives to align with the new normal, post-pandemic world.

COVID-19 was a catalyst to accelerate and broaden the scope of digital transformations as well as 5G and edge computing adoption in addition to other trends that were already in motion before the virus entered the picture, such as network transformation via virtualization and cloudification.

The Telecom Infrastructure Services Global Market Forecast tracks spend by communication service providers (CSPs), which includes telecom operators, cable operators and webscales, on infrastructure services. TBR categorizes infrastructure services into four distinct buckets: deployment services, maintenance services, professional services and managed services. This research includes current-year market sizing plus a five-year forecast across services segments and regions as well as examines growth drivers, top trends and leading market players. Vendor market share is also included.

COVID-19 will have a relatively limited impact on the TIS market overall as CSPs remain committed to and focused on deploying new technologies

Strong investments by webscales and China-based telcos will carry the telecom infrastructure services (TIS) market through the COVID-19 crisis relatively intact, with a shallow decline of relatively short duration expected in the overall market followed by a robust, sustained recovery as CSPs in other key countries accelerate their infrastructure initiatives to align with the new normal, post-pandemic world.

COVID-19 was a catalyst to accelerate and broaden the scope of digital transformations as well as 5G and edge computing adoption in addition to other trends that were already in motion before the virus entered the picture, such as network transformation via virtualization and cloudification.

The Telecom Infrastructure Services Global Market Forecast tracks spend by communication service providers (CSPs), which includes telecom operators, cable operators and webscales, on infrastructure services. TBR categorizes infrastructure services into four distinct buckets: deployment services, maintenance services, professional services and managed services. This research includes current-year market sizing plus a five-year forecast across services segments and regions as well as examines growth drivers, top trends and leading market players. Vendor market share is also included.

TIS market returns to positive growth as key operators accelerate and broaden 5G build-out plans

TIS market returns to growth …

According to Technology Business Research, Inc.’s (TBR) Telecom Infrastructure Services Global Market Forecast 2018-2023, the telecom infrastructure services (TIS) market has returned to a positive growth trajectory through the forecast period after several years of declines, now that the 5G cycle is underway and webscales continue to increase their spend on network technologies to drive their strategic initiatives. Leading operators globally have accelerated their 5G timelines by up to two years, and this has correspondingly pulled forward the TIS market growth curve by two years. 2018 was a key year where leading operators invested to prepare their networks for 5G and, in some cases, began deploying 5G technology. This trend will play out over at least the next five years as operators build out their 5G networks and continue their transformational journeys toward becoming digital service providers.

… but growth rate suppressed by offsetting factors

Offsetting factors that will constrain the rate of TIS market growth include the shift to more efficient network architectures (NFV/SDN and cloud); the decommissioning of legacy infrastructure; the increasing use of network resource pooling, such as network sharing; and operator consolidation.

Graph showing TIS market forecast and growth 2018-2023

Professional services will be the fastest-growing services segment through the forecast period

Increasing technology and business model complexity will drive demand for a broad range of professional services through the forecast period. Leading operators will continue their journeys toward evolving into digital service providers, and this will require the full spectrum of professional services, from consulting to systems integration. Operators will increasingly rely on the vendor community for assistance, requiring expertise, staff augmentation and access to intellectual property, or a combination off all three, as they pursue digital transformation.

TBR’s Telecom Infrastructure Services Global Market Forecast provides annual analysis and forecasting of the deployment, maintenance, professional services and managed services markets for network and IT suppliers.

5G-readiness spend and webscale investment drove strong growth in deployment and professional services

5G spend was pulled forward in key markets, supporting deployment and professional services markets

According to Technology Business Research, Inc.’s (TBR) 4Q18 Telecom Infrastructure Services Benchmark, operators in lead markets (U.S., China, Japan and South Korea) as well as a growing list of key operators in other developed markets have accelerated their 5G deployment timetables over the past year, primarily because 5G is a significantly more cost-effective solution to handle rising data traffic in their traditional connectivity businesses but also to remain competitive in their respective markets.

Vendor telecom infrastructure services (TIS) revenue benefited in 2H18 as operators pulled forward their 5G-related investment timelines, with increased spend on deployment and professional services to support 5G-readiness initiatives. The deployment services market is rebounding as operators densify their networks with small cells, bring new macro sites online and deploy fiber for backhaul in anticipation of 5G, particularly in the U.S. 5G is also a growth driver in the professional services market as operators leverage consulting services to develop implementation and business plans and vendors perform network infrastructure integration for the mass deployments of deep fiber, small cells and antennas that 5G requires. These trends supported revenue growth for Nokia, Huawei and Samsung and enabled Ericsson to mitigate the effects of restructuring in its Managed Services and Digital Services businesses.

Graph showing the ten largest TIS suppliers' 4Q18 revenue

Exposure to software-related services and webscales drives growth for select vendors, including Accenture and Ciena

Accenture and Ciena, among others, have strong traction in telecom operator and webscale customer segments. Among webscales, Accenture is providing outsourcing to manage back offices and integrating software. Accenture is also providing business, security and technical consulting to webscales.

Ciena capitalizes on growing demand for next-generation optical from communications service providers (CSPs) and webscales through its focus on optical R&D, which helps the company take share from more diversified vendors. Ciena also gains incremental software-related TIS revenue from its Blue Planet MANO (management and orchestration) and OSS offerings.

TBR’s Telecom Infrastructure Services Benchmark provides quarterly analysis of the deployment, maintenance, professional services and managed services markets for network and IT suppliers.

5G-related investment fuels vendor growth; greenfield 5G and Industry 4.0 opportunities emerge

U.S. cable operators and Dish Network are exploring building out their own 5G networks

Rakuten’s mobile broadband network deployment demonstrates that vendors must be aware of new opportunities to deploy 5G networks for customers that do not currently own mobile broadband networks. In November Dish Network selected Ericsson to supply a radio access and core network for Dish’s Narrowband IoT (NB-IoT) network, which is expected to be completed in March 2020. Dish, which has been closely watching Rakuten’s build-out, is also contemplating a nationwide 5G network, on which it could spend up to $10 billion. Cable operators Comcast, Charter and Altice, which are currently mobile virtual network operators (MVNOs) of Tier 1 mobile operators, are contemplating greenfield 5G network builds as well.

Industry 4.0 will drive demand for cellular connectivity within the enterprise, but not for a few years

TBR’s research suggests that Industry 4.0, which includes mass 5G adoption globally, will not ramp up until between 2022 and 2025, at which point business cases will be proven, justifying an increase in market spend on ICT infrastructure. Cellular technologies, namely LTE and 5G, have better uplink and security capabilities, and lower latency than Wi-Fi, all of which are necessary as enterprises begin to use network technology for mission-critical workloads rather than “best effort” communications. Certain vendors, namely Nokia, Huawei and Cisco, are better positioned than others to capitalize on this trend as they sell both directly and indirectly into enterprises, as well as through communication service providers (CSPs). Ericsson, in contrast, plans to go to market almost exclusively through CSPs, which will place it at a disadvantage as many large enterprises will want private networks.

TBR’s Telecom Vendor Benchmark details and compares the initiatives and tracks the revenue and performance of the largest telecom vendors in segments including infrastructure, services and applications as well as in geographies including the Americas, EMEA and APAC. The report includes information on market leaders, vendor positioning, vendor market share, key deals, acquisitions, alliances, go-to-market strategies and personnel developments.