Wednesday, December 16, 2020

How Much Commercial MEC Revenue Can be Generated, Early On?

Network operator spend on multi-access edge computing will grow from $2.7 billion in 2020 to $8.3 billion in 2025, says Juniper Research.  By 2025, the number of deployed MEC nodes will reach two million globally in 2025, up from 230,000 in 2020. These devices, which take the form of access points, base stations, and routers, Juniper Research says.


What perhaps is not so clear is the expected value those MEC investments will produce. Since the 5G core network is itself virtualized, edge computing locations and devices will be necessary for distributed radio access network functions, at the very least. 


Beyond that, mobile operators hope their MEC investments will translate into retail revenues from commercial customers, including hyperscale app providers and cloud computing firms using connectivity network assets to support their own retail edge computing services. 


At the moment, mobile operator commercial revenues are probably in low single-digit millions, and much of that generated in the form of hosting services at the edge for hyperscale “computing as a service” providers. 


At least for a while, MEC might produce higher value for operators as a support for their core networks than as a commercial revenue source.


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