Telecom’s Biggest Vendors: 1Q23

Telecom’s Biggest Vendors: 1Q23

The goal of this report series is to equip telecom industry decision-makers with a comprehensive view of spending trends and vendor market power in their industry. To do this we assess technology vendors’ revenues in the telecom vertical, across a wide range of company types and technology segments. We call this market “telco network infrastructure”, or “Telco NI.” This study tracks 134 Telco NI vendors, providing revenue and market share estimates for the 1Q13-1Q23 period. Of these 134 vendors, 110 are actively selling to telcos; most others have been acquired by other companies in the database. For instance, ADVA is now part of Adtran, but both companies remain in the database because of historic sales.

Telco NI annualized revenue growth decline by 1.2% in 1Q23 – a first since 4Q20

Telco NI revenues were $232.5B for the annualized 1Q23 period and $53.4B in 1Q23, down 1.2% and 3.9% on a YoY basis, respectively. The 1.2% revenue dip in the annualized 1Q23 period also marks the first ever decline in more than two years, since the market fell by 0.7% in the annualized 4Q20 period. On a YoY basis, the decline in the annualized 1Q23 period is significant considering the 6.7% growth recorded in annualized 1Q22, when telcos continued to splurge on 5G and on COVID catch-up projects hit by delays in 2020. Overall, Telco NI revenues for our entire set of vendors have been flat for most of the last decade, hovering in the $210-220B range in most years, while breaching the $230B barrier in the last two years.

The information contained in this report was obtained from both primary and secondary research, supplemented by the expertise of MTN Consulting's analyst team.

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