The microwave transmission market revenue has dropped 8 percent in 2Q 2024, according to Dell’Oro Group.
The drop in the microwave transmission revenue was due to less demand for mobile backhaul. Revenue of mobile backhaul business fell 9 percent.
This is the fourth consecutive decline in the microwave transmission equipment revenue – mainly due to a slowdown in 5G deployments.
“The microwave transmission market started to trend downward a year ago in 2Q 2023,” Jimmy Yu, Vice President at Dell’Oro Group, said. “This downward trend is due to delays and slow starts in upgrading to 5G as operators in many parts of the world lack incentive to rapidly install a 5G networks.”
Both the Long Haul and Short Haul markets declined in the quarter. The decline in long haul was due to limited demand for full indoor units (FIDUs). FIDU revenue declined nearly 40 percent in the quarter.
Microwave transmission market in all regions declined in the quarter with the exception of the Middle East and Latin America. The microwave transmission market in Asia Pacific fell due to less demand in India. Microwave transmission market in India declined 40 percent.
Microwave transmission vendors such as Aviat, Ceragon, Huawei, and ZTE increased their revenue in 2Q 2024 compared to the same period last year.
Aviat Networks
Aviat Networks recently completed its acquisition of the wireless transport business of NEC Corporation for $65.5 million.
Aviat Networks revenue for the nine months ended March 29, 2024 was $294.2 million, compared to $255.4 million in the same period of fiscal 2023. Aviat Networks revenue from North America was $151.2 million, while International revenue was $143 million.
Ceragon
Ceragon has reported revenues of $96.1 million with operating income of $10.4 million and net income of $7.8 million during the second-quarter of 2024. India (representing 37 percent of its total revenue), North America (24 percent), Europe, the Middle East and Africa (20 percent), Latin America (10 percent) and other Asia Pacific (9 percent) contributed to Ceragon’s revenue. In India, Ceragon achieved record quarterly revenues since Q2 2018.
ZTE
ZTE has reported revenue of RMB 37.30 billion from operator network business during the first half of 2024. ZTE says it has achieved the first large-scale commercial deployment of a 400G all-optical inter-provincial backbone network in partnership with operators.
Huawei
Huawei is yet to reveal its revenue from mobile operator customers for the first-half of 2024. Huawei recently said research firm IDC has named Huawei a leader in network consulting services.
Huawei recently said its XMC-80D features optimization algorithms that improve coding efficiency for better spectral utilization, and a single box delivers up to 25 Gbps bandwidth with dual-channel and dual-polarized transmission. A single E-band link can provide speeds as high as 50 Gbps, almost halving the hardware required while increasing capacity by 150 percent.
Baburajan Kizhakedath
