5G Drives Core Network Investment

Alright, buckle up, buttercups, because Lena Ledger is about to gaze into the crystal ball and give you the skinny on the mobile core network (MCN). And let me tell ya, the future looks brighter than a neon sign in Vegas! We’re talkin’ about a whirlwind of change, powered by the magic of 5G Standalone (SA), and the numbers are lookin’ so good, you might just want to start saving for that yacht.

The Mobile Core Network: A Prophecy of Growth

For years, the MCN market was flatter than a pancake on a Tuesday. Stagnation, slow rollouts, and the whole shebang. But hold onto your hats, because the oracle has spoken: a revolution is underway! Recent reports, like the ones from those clever folks at Dell’Oro, are shouting from the rooftops about a massive upswing. It’s not just a little blip on the radar, no sir. We’re talking a fundamental shift, a whole new era, all thanks to the power of 5G SA. And it’s not just about faster downloads, no way! This is about a complete transformation, reaching into every corner of the industry, enabling all sorts of new applications and services. Now that’s what I call a good time!

Unpacking the MCN’s Metamorphosis: A Tale of Two Architectures

Let’s take a step back, y’all, and understand the basics. Back in the day, 5G started with Non-Standalone (NSA) architecture. Think of it like a halfway point, using old 4G infrastructure as a foundation to get those speeds up. It was a quick fix, a temporary thrill. But the true power of 5G? It was locked away, waiting for its moment to shine. That moment is now, with the arrival of 5G SA. This, my friends, is the real deal. A whole new architecture, built from the ground up. A 5G core network designed to unleash the full potential, and believe me, it’s something to behold.

So, what’s happening on the ground? Well, the numbers don’t lie. Dell’Oro’s reports are showing some serious fireworks, and they’re calling it a 32% year-over-year growth in Q1 2025. That’s right, a 32% jump! And get this – a whopping 122% surge in China? Talk about a boom! They are not kidding around. And it doesn’t stop there. Dell’Oro Group is predicting a 6% compound annual growth rate (CAGR) from 2024 to 2029. Plus, a whopping 15% year-over-year growth in the 5G MCN market for 2025. And trust me, that’s not just about faster downloads; it’s about latency, the real key to everything. This will open doors to new services we’ve been dreaming of, such as Augmented Reality (AR), Virtual Reality (VR), and all that jazzy industry automation. Now, if that doesn’t get your heart racing, I don’t know what will!

Decoding the Drivers of Growth: Operators, Demand, and IMS

So, what’s fueling this incredible expansion, you ask? Well, the cards are telling a clear story, darlings.

• Operators are stepping up their game. Competition is fierce out there, and operators are seeking to differentiate themselves. 5G SA allows them to provide top-notch services with a guaranteed Quality of Service (QoS). Think of it: smooth AR experiences, immersive VR, all thanks to the power of network slicing. It’s like tailoring your network to your exact needs! T-Mobile US is at the forefront, leading the charge with their 5G SA capabilities and L4S deployments. They are showing the world how it’s done.

• The demand for advanced applications is soaring. Industries like manufacturing, healthcare, and transportation are all hungry for digital transformation and increased efficiency. 5G SA is the perfect solution to all that. They need reliable, low-latency connectivity, and 5G SA is answering the call, making dreams a reality.

• The IMS core is evolving. This IMS (IP Multimedia Subsystem) Core is experiencing some healthy growth. It is now being adopted more and more because of its flexibility and scalability. This expansion is directly tied to the 5G SA rollout, providing the foundation for those super cool advanced services.

Challenges on the Horizon

It wasn’t all sunshine and rainbows in 2024, mind you. The MCN market hit a period of stagnation. The growth was less than 1% CAGR between 2023 and 2028. This was caused by a slower-than-expected 5G SA rollout and the continued reliance on NSA. But as the oracle reads the cards, these challenges are being tackled. Investments are being made not only in the infrastructure but also in devices and applications. And speaking of devices, the GSA (Global System for Mobile Communications Association) is tracking the availability of 5G SA devices, which is further fueling adoption.

The Future is 5G SA: Beyond the Horizon

The future, my friends, is 5G SA. It is the key to a connected world! It’s not just about mobile applications anymore. 5G SA will be a major component of countless industries, from smart cities and connected vehicles to remote healthcare and industrial IoT. The Dell’Oro Group’s Mobile Core Network & Multi-Access Edge Computing Quarterly Report is making the case for a future driven by multi-access edge computing (MEC). The combination of 5G SA and MEC will enable all kinds of new applications and business models.

Now, what does this all mean, in a nutshell?

The mobile core network market is going through a significant revitalization, powered by 5G SA. There has been substantial growth, driven by the unique capabilities of 5G SA, increasing demand for services, and strategic investments by operators. Continued growth is projected. We’re talking a 6% CAGR from 2024 to 2029 and a 15% year-over-year growth in the 5G MCN segment for 2025.

This shift unlocks the full potential of 5G and enables innovation across a wide range of industries. The evolution of the IMS core and the increasing availability of 5G SA devices are pushing the momentum forward, which is paving the way for a truly connected world.

And that, my dears, is the truth, the whole truth, and nothing but the truth, so help me, Liza Minnelli! Now go forth and prosper! The future is bright, and the MCN market is the place to be.

And as for your investments? Well, let’s just say… fate’s sealed, baby!