After Years of Halfhearted Green Initiatives, the KPN-Led Sustainability Initiative Might be a Sign of a Real Movement Afoot

John Byrne – Service Director, Service Provider Infrastructure

Summary Bullets:

• KPN is taking a leadership position in driving its vendor community toward more sustainable practices. Other operators are likely reviewing KPN’s “Circular Manifesto” as a template for how they should revise their own sustainability initiatives.

• Telecom technology and software vendors are increasingly being pushed by their key operator customers to commit to adopt manufacturing and production practices that rely on reusable or recyclable components, as well as renewable energy sources.

Dutch network operator KPN, which provides mobile and fixed-line service to nearly 40 million customers in The Netherlands, Germany, Belgium, France and Spain, caused a stir in October, announcing an aggressive environmental initiative that could become a model for operators looking to beef up their “sustainability” credentials. Read more of this post

AT&T and Verizon Send Shot Across the Bow of TowerCos with Tillman Alliance

John Byrne – Service Director, Service Provider Infrastructure

Summary Bullets:

  • AT&T and Verizon announced a joint venture with Tillman Infrastructure under which Tillman will build hundreds of cell towers across the country. Both AT&T and Verizon will lease and co-anchor towers built under the agreement.
  • The deal is likely designed to pressure ‘big three’ tower companies Crown Castle, American Tower and SBA Communications to negotiate more favorable terms, but it is not clear Tillman has the clout to have much of an impact on operators’ bargaining positions.

AT&T and Verizon announced a joint venture with Tillman Infrastructure on November 13th under which Tillman will build hundreds of cell towers across the country. Both AT&T and Verizon will lease and co-anchor towers built under the agreement. The operators indicate that the deal enables them to build towers exactly where they are needed; in practice, the Tillman deal provides AT&T and Verizon with an alternative to leasing space from tower companies such as Crown Castle, American Tower and SBA Communications. Read more of this post

Looking at the Good & Bad News in Q3 2017 Telecom Vendor Financial Results

John Byrne – Service Director, Service Provider Infrastructure

Summary Bullets:

  • Revenue was down year-to-year for Ericsson, Nokia, Cisco and even ZTE, which had carried positive growth for H1 2017. But, vendors are generally doing a good job driving out costs in order to increase profitability.
  •  On their face, Ericsson’s Q3 2017 results reflected a company facing multiple challenges and a lengthy road to recovery. However, there were signs of light indicating that the fundamental business may return to solid footing once painful restructuring initiatives are completed.

The Bad News: Revenues Down

With the results now in for Q3 2017, it’s clear it was a rough quarter for many vendors. Results were perhaps most striking for ZTE (consolidated results shown), which experienced a nearly 8% decline compared to the prior year quarter. ZTE’s results were a distinct reversal from the first half of 2017, in which the company grew revenue 13% year-to-year. Read more of this post

How to Make the Case for 5G? Techno-Economic Modeling of Course!

John Byrne

John Byrne – Service Director, Service Provider Infrastructure

Summary Bullets:

• The economics of 5G are different than previous radio technology upgrades; CSPs need to be convinced of the business case(s) supporting 5G deployments.

• A multitude of supporting hardware, software and services vendors understand this imperative; Nokia’s Bell Labs-infused “techno-economic modeling” is one of the more forward-leaning approaches in driving 5G investment..

Network technology vendors all seem to reach the same conclusions at the same time.

In the case of 5G, every vendor in the space has figured out – seemingly simultaneously – that 5G is different from earlier iterations. In the case of 3G, CSPs were eager to deploy the technology in order to address rapidly increasing demand for mobile data, fueled in turn by the first iPhone in 2007 and a host of other touchscreen smartphones that made it very easy to access Internet services. This in turn led to some high-profile network degradations as CSPs struggled to keep pace with demand. Similarly, 4G addressed the need by operators to keep pace with video traffic, both in downlink throughput required to stream video but also in the uplink throughput required for everyone to send videos, e.g., from the Super Bowl, where traffic leaving the stadium now exceeds download traffic by a wide margin. 4G also was crucial to improve the latency surrounding both data and video traffic. As a result, market forces drove LTE deployment far more quickly than originally expected, even for reluctant European operators with significant budget constraints.

But 5G is different. Technology vendors have spent the last few years hyping the coming of 5G as a transformative event for the industry. Meanwhile, CSPs, most of which are seeing flat or declining revenue and shrinking margins, face an environment where, frankly, continued evolution of the LTE standard (think 4.5G, 4.9G, 4.99G?) will continue to improve performance on bread-and-butter requirements like throughput and latency. Which begs the question: Why 5G?

Nokia is attempting to answer the “Why 5G” question with 5G “techno-economic modeling” to showcase the benefits of 5G deployment. Taken at the generic level, Nokia is offering key benefits for 5G that previous technologies can’t provide, for example:

• 24x improvement in capacity compared to 4.5G networks

• 50%-75% reduction in network operational cost compared to 4.5G and even 4.9G networks

• 99.999% network reliability, enabling SLAs that far exceed any previous technologies

For all vendors in the 5G space, providing the big picture behind 5G – essentially making the case that 5G performance and efficiency is improved by orders of magnitude over 4G/LTE – is an important step on the way to 5G. And the claims by Nokia are compelling for sure. However, ultimately they do not identify the benefits from specific 5G use cases. To address this, Nokia has introduced specific benefits of investing in 5G, initially honing in on three use case scenarios:

• Connected events – Enabling 360-degree, immersive virtual reality experiences in connected stadiums

• Connected industries – Creating the factory of the future (Factory 4.0)

• Connected cities – supporting multiple connected devices in ultra-high density areas where 4G/LTE will not provide the necessary scale; Bell Labs modeling indicates 5G reduces signaling load and related costs by 65% compared to LTE

Of course, the fact that Nokia (and other vendors) need to work so hard to make the case for “Why 5G” points out the different marketplace dynamics compared to previous technology iterations. However, with that challenge acknowledged, the next step is to take the guesswork out of 5G business planning by combining an understanding of emerging 5G technology with a deep understanding of CSP operating environments and business models.

With that in mind, the next step for Nokia, and for its competitors, will be to provide dozens more use case models that can support the 5G investment case. Specifically, modeling around network slicing will be crucial. That’s easier said than done, but is crucial: getting operators to buy into the numbers will be the key to getting them to stop kicking the tires on 5G and start investing more aggressively.

Read more of this post

Cellular IoT: Understanding the “Value” of NB-IoT or LTE-M Key to Operator Success?

John Byrne

John Byrne – Service Director, Service Provider Infrastructure

Summary Bullets:

• NB-IoT and LTE-M deployments are proliferating. Proofs of concept abound, but neither technology appears to be generating significant momentum yet.

• Regardless of the technology, moving beyond connectivity is vital to mobile operator success in IoT.

In the past six months, cellular operators worldwide have been rapidly deploying narrowband (NB)-IoT and LTE-M. In June, the GSMA announced the success of its Mobile IoT Initiative, claiming nearly 75 operators deploying NB-IoT or Cat-M and 500 members in its Mobile IoT Innovators initiative designed to help operators add IoT value. The bulk of this focus has been on NB-IoT, which cellular operators are using to establish new use cases, including smart agriculture and a variety of smart cities applications involving lighting, parking meters, smart buildings and the like. For example, T-Mobile USA completed live NB-IoT smart city trials in July 2017 in advance of a planned national launch.

Read more of this post

AT&T Introduces “5G Evolution”: Is This the Moment When 5G Became a Marketing Term?

John Byrne

John Byrne – Service Director, Service Provider Infrastructure

Summary Bullets:

• AT&T launched the first of what it calls “5G Evolution” upgrades slated for 20 major metros in the U.S. in 2017.

• As with the introduction of 4G/LTE, operators are likely to begin treating “5G” as more of a marketing tool than a specific set of performance specs.

The history of mobile network evolution used to be pretty clear. First there was analog (which, by the way, no one referred to as “1G”), which was the service customers had in the 1980s – simple voice over inefficient networks, but that was OK because most people couldn’t afford cellphones (which were at that time “carphones”). Read more of this post

IoT @ MWC17: What the IT Vendors/Systems Integrators Were Up To

S

John Byrne

John Byrne – Service Director, Service Provider Infrastructure

ummary Bullets:

• IT equipment vendors/software vendors/systems integrators largely focused on broader issues such as CSP cloud migration and digital transformation, with IoT woven in within those larger themes.

• IBM significantly broadened its IoT ecosystem but waited until its own InterConnect event later in March to announce Watson would power AT&T’s new IoT Analytics solution expanded. Meanwhile, Tata’s massive rollout of a LoRa-based network, supported by HPE’s Universal IoT platform, probably didn’t get the attention it deserved.

IoT is a big topic, dominating many discussions around the future of wireless networks and telecom service providers.

It wasn’t surprising, then, that it was a major topic of discussion at Mobile World Congress this year. Likewise, given the broad reach of IoT use cases and the broad set of players in the IoT ecosystem, it wasn’t surprising to see different parts of the market show up with their own stories. A look at the announcements from various segments of the market – silicon vendors, LPWAN network providers, incumbent telecom vendors, specialist telecom and IT players – helps to illustrate the stories they showed up to tell. Read more of this post