ABI Research has released the name of 15 start-up innovators in Radio Access Network and Core Network that assist mobile operators to ensure efficiency and better customer experience.

These start-up companies’ technology innovation will be important for telecom operators because the evolution of mobile networks in the next 3-4 years will be more transformational than was the shift to IP in mobile networks.

Several top telecom equipment makers are facing challenges in the market due to decrease in Capex by mobile operators.

Ericsson, in line with the global cost and efficiency program, has decreased its R&D (research and development) expenses in the last two years to SEK 31.6 billion in 2016 from SEK 34.8 billion in 2015 and SEK 36.3 billion in 2014. However, the number of patents increased to 42,000 by the end of 2016.

Capital expenditure of Ericsson was SEK 6.1 billion in 2016 or 2.8 percent of sales against SEK 8.3 billion in 2015. Ericsson said its Capex were mainly related to test sites and equipment for R&D, network operation centers and manufacturing and repair operations.

Hot tech innovative companies

# Affirmed Networks
# AirHop Communications
# Athonet
# Blue Danube
# CellMining
# Cellwize
# Core Network Dynamics
# Mavenir
# Mimosa
# PI Works
# PeerApp
# Phluido
# Saguna Networks
# Vasona Networks
# XCellAir

Till now telecom operators mainly relied on Huawei, Ericsson and Nokia for their core networks for offering voice and data services.

Recently, GSMA said the launch of Jio in India in September 2016, offering cost effective 4G services, drove adoption but put significant pressure on market prices and hence revenues.

Competition in the US telecom market remains intense, driven by T-Mobile, which continues to gain market share. These competitive pressures have negatively affected sector ARPU levels. All the four wireless operators offered unlimited data plans. GSMA feels the mobile market is heading for lack of stability.

“Stagnating average revenue per user and increasing network traffic are driving mobile operators to be more cost-effective and innovative in network performance and operations management and network upgrades,” said Prayerna Raina, senior analyst of ABI Research.

The telecom network start-ups are challenging top technology companies such as Ericsson, Huawei, Nokia, among others.

Technology trends that impact mobile networks

# Application of virtualization and software-defined networking technologies to mobile networks
# Evolution of the mobile edge to improve customer quality of experience (QoE) and create monetization opportunities for operators
# Need for an effective self-organizing network (SON) solution
# Leveraging Big Data analytics to employ granular network data to enhance network performance

Digital transformation toward virtualized and software defined networks is creating the opportunity for telecom operators to open their highly proprietary networks and vendor ecosystem to include innovative start-ups.

Earlier, ABI Research released its Telco Cloud Hot Tech Innovators report, outlining 15 companies that are creating new types of innovation and bringing fresh ideas to the telecoms market.

Baburajan K