U.S. vs. Huawei: Everybody Loses

Summary Bullets:

• The U.S. Department of Commerce’s (DoC) move to prohibit Huawei from buying components manufactured using U.S.-made foundry machines and silicon design tools has major implications for Huawei’s continued operations.

• However, it will also bring immediate negative effects on component suppliers (some U.S.-based), impact competition among ICT vendors, and produce uncertainty going forward.

New sanctions announced by the U.S. DoC on May 15 prohibit foundries using U.S.-made machines and software from selling chips to Huawei. In practical terms, this means that Huawei’s key silicon suppliers – Taiwanese TSMC and Chinese SMIC – would likely need to halt production of Huawei subsidiary’s HiSilicon chip designs. The immediate prospect for Huawei is especially bleak considering that the great majority of the world’s foundries use U.S.-sourced hardware or software in some parts of their process. Continue reading “U.S. vs. Huawei: Everybody Loses”

After the Dali Wireless-CommScope Court Fight, Legal Uncertainties Linger in the Enterprise RAN

Ed Gubbins – Principal Analyst

Summary Bullets:

  • Enterprise RAN vendors CommScope and Dali each won damages in countervailing patent infringement cases last week, but an injunction against two Dali products may be of interest to the broader industry.
  • That injunction is suspended pending appeal. It may be rendered moot by expiring patents, and its impact may be mild even if upheld. Still, additional suits could foster lingering uncertainty in this space.

A legal battle over patent infringement between enterprise RAN vendors CommScope and Dali Wireless came closer to resolution last week, but a key aspect – an injunction that would prevent Dali from selling two primary products – remains uncertain. A Dallas judge upheld a jury verdict rendered last year that awarded damages to both companies in a patent infringement suit and related countersuit. CommScope was ordered to pay almost $9.5 million, plus additional interest, and Dali was ordered to pay about $6 million, plus interest. Continue reading “After the Dali Wireless-CommScope Court Fight, Legal Uncertainties Linger in the Enterprise RAN”

COVID-19: Operators Kick the Can Down the Road in Defining Impact to FY2020 Results

John Byrne – Service Director, Global Technology Telecom and Software

Summary Bullets:

• In their first round of quarterly results since the widespread outbreak of COVID-19, network operators provided few specifics on the true impact of the pandemic on 2020 outlooks.

• Most operators remain hopeful that a fuller picture of the impact of the disease will emerge in time for Q220 earnings releases, but that is likely to vary significantly by region and country.

With most of the world’s largest network operators now having chimed in on Q1 2020 earnings, what is clear is that little remains clear in terms of how COVID-19 will impact them this year. Most operators have withdrawn full-year guidance and have indicated that a reliable picture will not emerge until the true trajectory of COVID-19 becomes clear. Since that answer can vary significantly from country to country, region to region, and city to city, most operators lack the tools to provide reliable guidance. Continue reading “COVID-19: Operators Kick the Can Down the Road in Defining Impact to FY2020 Results”