“The momentum with both commercial deployments and the broader Open RAN movement continued to improve during 1H21, bolstering the thesis that Open RAN is here to say,” said Stefan Pongratz, Vice President and analyst with the Dell’Oro Group. “We are adjusting the forecast upward to reflect the higher baseline and the improved pipeline,” continued Pongratz.

“Disaggregated DWDM systems outperformed the broader market, demonstrating the growing adoption of this platform type,” said Jimmy Yu, Vice President at Dell’Oro Group. “Really what we see is that this type of platform architecture, where transponder units are independent of the line systems, is being more widely embraced beyond the Internet content providers. Also, it is no longer just for metro applications. Recently, the highest growth rates have been from long-haul applications,” added Yu.

“The underlying long-term growth drivers have not changed and continue reflect the shift from 4G to 5G, new FWA and enterprise capex, and the transitions towards active antenna systems,” said Stefan Pongratz, Vice President and analyst with the Dell’Oro Group. “At the same time, a string of indicators suggest this output acceleration is still largely driven by the shift from 4G to 5G, which continued at a torrid pace in the quarter, even as LTE surprised on the upside,” continued Pongratz.

We attribute the slowdown to the slow uptake of 5G Standalone (SA) networks. CSPs need to make decisions about which direction to take for 5G SA deployments. CSPs have several options to mull over, with new choices that were not issues during the switch from 3G to 4G,” stated David Bolan, Research Director at Dell’Oro Group. “One decision CSPs need to make is about the selection of Network Function Virtualization Infrastructure (NFVI). NFVI can be procured from a 5G core vendor, a third-party, utilize the public cloud, or another platform like the Rakuten Communications Platform.”

“The Microwave Transmission market is recovering from the decline caused by the spread of COVID-19 as evidenced by the strong growth in the first half of 2021,” stated Jimmy Yu, Vice President at Dell’Oro Group. “Almost all of the vendors in this industry are benefiting from the improving mobile backhaul market, especially the top vendors. Since demand is rising, each vendor’s performance this year will come down to how well they navigate the supply issues created by the pandemic and semiconductor shortages,” added Yu.