Communications related vendor contracts start to pick up

Esther Cheh | July 28, 2021

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Publicly available announcements on all telecom contracts started to see a slowdown in 2nd quarter of 2019 and dipped in the 2nd quarter of 2020. We believe there might be several factors that could lead to the slowdown in 2019.  In transport networking, operators are assessing new deployment models that include virtualization and disaggregated platform and in wireless segment, 4G rollout has reached maturity and started to see decline while 5G rollouts have just started and at an early phase of evaluation. And obviously at the end of 2019, we are seeing a more distinct slowdown likely from the impact of COVID-19 on global business deals. CSP has been more cautious with spending due to the challenges and uncertainties from the pandemic. However, dynamics related to COVID-19 have on the other hand accelerated bandwidth consumptions and subsequently driven investments across all segments of the network as we start to see recovery in the number of contracts announcement in the recent few quarters.

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