Mobile core, IMS/VoLTE and RAN segments will account for approximately 40% of all service provider SDN and NFV spending by the end of 2020, according to SNS Telecom & IT's latest report.
Service providers continue to face increasing CapEx and OpEx burdens, amid growing requirements for high-speed mobile broadband services. By eliminating reliance on expensive proprietary hardware platforms, NFV (Network Functions Virtualization) and SDN (Software Defined Networking) promise to reduce service provider CapEx.
In addition, both technologies can significantly slash OpEx due to a reduction in physical space, labor and power consumption.Driven by the promise of TCO (Total Cost of Ownership) reduction, mobile operators are aggressively jumping on the NFV and SDN bandwagon, targeting deployments across a multitude of areas.
SNS Telecom & IT estimates that NFV and SDN investments in service provider networks – both mobile and fixed-line – will account for nearly $22 Billion by the end of 2020. Approximately 40% of these investments will be directed towards the mobile core, IMS/VoLTE and RAN segments of mobile operator networks.