New RAN architecture is creating opportunities for professional services in xHaul

Professional services have traditionally played a far smaller role in the deployment and management of backhaul than in the more complex radio access network (RAN). However, the typical services requirement for backhaul started to increase when operators began deploying radio units separately from basebands, which entailed the deployment of a fronthaul link between the two elements. Services revenue accounted for 24% of the total xHaul market in 2020, up from about 10% in 2005. This figure increased further in the 2020s, to around 32%, a percentage that Analysys Mason forecasts will stay steady until 2028, although services revenue will grow at a CAGR of 16% between 2022 and 2028, in line with the total xHaul segment. The services share of revenue may fall again as pre-integrated xHaul platforms emerge after 2028, but we do not see this as a major trend before then.

The drivers of xHaul revenue growth identified in Analysys Mason’s xHaul: worldwide forecast 2022–2028 will also contribute to the expansion of the xHaul services opportunity for equipment vendors or professional services specialists. These drivers are open virtualised networks and disaggregated RAN, and the biggest demand for services will be seen where operators adopt an end-to-end approach to their RAN and xHaul architecture.