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Subsea Deployments Driving Growth and Innovation for Many Vendors

by , posted in Ultra Broadband
John Byrne, Service Director

Summary Bullets:

  • Subsea cable deployments have represented a small but significant share of revenue for many vendors. However, that is changing as demand for broadband capacity continues to increase.
  • These vendors are also finding that subsea deployments serve not only as a source of growth, but as an ideal venue to showcase their latest product capabilities as well, particularly in 800G coherent optics.

Recent announcements by a number of subsea cable providers are showcasing a number of key trends: not only is subsea capacity more in demand than ever, but these deployments are also serving as an ideal technological proving ground. Continue reading “Subsea Deployments Driving Growth and Innovation for Many Vendors” →

Homeworkers May Be the True Market Opportunity for 5G Fixed Wireless

by , posted in Net Transformation
John Byrne, Service Director

Summary Bullets:

  • Operators and vendors have been targeting the U.S. market recently with a number of new offerings that enable enterprises to provide a secure IT and communications environment for their employees that are increasingly likely to work-from-home even after the pandemic subsides.
  • 5G proponents have thus far struggled to identify workable use cases for 5G fixed wireless, particularly as a replacement for fixed broadband. The incremental enterprise opportunity may represent the true 5G FWA use case.

Google became the latest big company to embrace an extended – and perhaps permanent – employment paradigm in which many employees will be working from home, at least part-time, for the foreseeable future. Google CEO Sundar Pichai announced March 5 that Google will allow approximately 20% of workers to stay home permanently, and most employees will be able to work from home two days per week. Google joins a host of companies embracing hybrid working environments even once pandemic restrictions have fully eased. Continue reading “Homeworkers May Be the True Market Opportunity for 5G Fixed Wireless” →

T-Mobile US–Lumen Alliance Combines 5G and Edge: Is a Merger the Next Logical Step?

by , posted in Net Transformation
John Byrne – Service Director, Global Technology Telecom and Software

Summary Bullets:

• T-Mobile US and Lumen announced an alliance in April to sell packages of edge computing services and 5G wireless to enterprises in the U.S.

• The venture leverages the strengths and blunts the weaknesses of both companies. Longer-term, it could lead to a merger that would enable both companies to compete more effectively against AT&T and Verizon.

T-Mobile US and Lumen Technologies announced in April that they will embark on a strategic alliance to help business customers build, manage, and scale applications across distributed environments. The partners note that enterprise applications would benefit from Lumen’s hundreds of thousands of fiber-connected enterprise locations paired with T-Mobile’s large and fast 5G network. T-Mobile will also become a preferred wireless connectivity partner for Lumen, allowing for a more flexible and reliable connectivity solution for all enterprises. Continue reading “T-Mobile US–Lumen Alliance Combines 5G and Edge: Is a Merger the Next Logical Step?” →

Huawei Annual Report Shows Increasing Reliance on Home Market in Response to Geopolitical Challenges

by , posted in Vendor Transformation
John Byrne, Service Director

Summary Bullets:

  • Huawei posted modest growth in 2020 despite pandemic-related challenges; however, the company relied heavily on its domestic market while revenue outside China declined significantly.
  • The Chinese market alone makes Huawei one of the largest ICT providers in the world; however, the company’s global supply chain will continue to pose significant challenges.

The 2020 annual report released by Chinese telecommunications vendor Huawei Technologies shows the company’s share of revenue coming from its home market rose sharply in 2020, increasing to nearly two-thirds of total revenue. In total, Huawei reported revenue of CNY 891.4 billion, or $136.7 billion, in 2020. The company managed to increase revenue nearly 4% compared to the prior year – an impressive feat in the midst of a global pandemic. Continue reading “Huawei Annual Report Shows Increasing Reliance on Home Market in Response to Geopolitical Challenges” →

US Operators Signal Higher Capex in 2021 After a COVID-Dampened 2020

by , posted in Net Transformation, Ultra Broadband
John Byrne, Service Director

Summary Bullets:

• Despite the impact of COVID-19, capital spending by US network operators was down relatively modestly in 2020, falling by around 4%.

• 2021 guidance from these operators shows a return to roughly similar levels as 2019. Continued demand for additional network capacity along with new 5G imperatives clearly remain.

An analysis of US operator financial results based on Q4 2020 earnings releases shows that while COVID-19 did slow capital investment, it could have been worse. Thanks to a flurry of activity toward the end of the year, the nine publicly-reported carriers, all of which spent in excess of $1 billion in capex, accounted for just over $67 billion in spending. That was down by approximately $3 billion, or 4.2%, compared to 2019. GlobalData estimates that the big three that account for nearly 70% of total capex – AT&T, Verizon, and T-Mobile USA – spent roughly $46 billion, down 6.1% from 2019. However, the bulk of the decline was attributable to AT&T. Continue reading “US Operators Signal Higher Capex in 2021 After a COVID-Dampened 2020” →

MWC2021 Organizers Insist the Show Must Go On

by , posted in Net Transformation, Ultra Broadband
John Byrne – Service Director, Global Technology Telecom and Software

Summary Bullets

• GSMA is moving forward with plans for an-in person MWC Barcelona event, though roughly half its normal size and with numerous COVID-19-related precautions.

• Despite moving the date back four months to June 2021, there are still many obstacles to overcome before an actual event will even be feasible.

After the GSM Association (GSMA) made the difficult decision to cancel Mobile World Congress (MWC2020), the largest mobile event in the world, last February, it spent months working with exhibitors on a revised package of discounts to future events. For most exhibitors, the compromise package meant agreeing to forego any cash refund. Instead, these companies agreed to a series of rebates on future events, including a 65% credit on MWC2021, a 35% credit on MWC2022, and a 25% credit on MWC2023.

The event, held annually in Barcelona, was originally scheduled for this week. However, last September the GSMA agreed to postpone the event by four months to hedge its bets, just as Europe was heading into its second wave of COVID-19 infections. The question now is whether even the additional four months will be enough time to carry off a physical event. Continue reading “MWC2021 Organizers Insist the Show Must Go On” →

Mobile Operators Are Looking to Incubate Their Way to 5G Success

by , posted in Net Transformation
John Byrne – Service Director, Global Technology Telecom and Software

Summary Bullets

•T-Mobile US introduced a new incubator program designed to foster 5G innovation. Operators and networking vendors are increasingly in the business of seeding 5G innovation.

•The growing number of 5G innovation hubs highlights the growing challenge facing mobile operators hoping to monetize expensive 5G network buildouts.

Mobile operator T-Mobile US announced a new “5G Connected Future” incubator program in February that combines technology, academia, “Curiosity,” and seed money, in a bid to foster new revenue-generating 5G applications.

T-Mobile will collaborate with the Georgia Institute of Technology’s Advanced Technology Development Center (ATDC) on the program, which represents an expansion of T-Mobile’s Accelerator program. T-Mobile reports it has worked with 67 startup companies that have raised over $50 million in funding since participating in the Accelerator program, all focused on building immersive 5G-based applications such as augmented/virtual reality applications, holographic displays, and robotics. Continue reading “Mobile Operators Are Looking to Incubate Their Way to 5G Success” →

COVID-19: Delay in 5G Standards Will Mean Delay in 5G Innovation

by , posted in Net Transformation, SDN/NFV
John Byrne, Service Director

Summary Bullets:

  • The 3GPP announced that it is likely to see a significant delay in completing Release 17 standards governing 5G technology.
  • The delay – likely to be a minimum of six months and possibly longer – will put a damper on dozens of work items designed to enable transformative 5G services.

The body responsible for developing the standards governing 5G technology has signaled that its inability to meet in person is causing a slowdown in developing new technical standards.

The Third Generation Partnership Project (3GPP) announced September 21 that it is expecting a delay in 5G standards of a minimum six months – and potentially longer. That in turn is likely to delay the deployment of many of the innovative use cases envisioned for 5G. Continue reading “COVID-19: Delay in 5G Standards Will Mean Delay in 5G Innovation” →

Telefonica O2 Looks to Ericsson to Deliver on 5G Energy Plan

by , posted in Net Transformation
John Byrne, Service Director

Summary Bullets:

• In a report released in August, O2 explained how 5G technology will help it reach its goals for 2025 – and well beyond.

• The report calls out the vital role of its primary infrastructure partner Ericsson in helping it “Break the Energy Curve” as it rolls out 5G for O2.

UK operator Telefonica O2 put its ‘green’ stake in the ground in March 2020 by announcing plans to dramatically reduce carbon emissions across its business and network by 2025. In a report released in August, O2 explained how 5G technology will help it reach its goals for 2025 – and well beyond.

In the new report, O2 made the case that 5G will play a crucial role in four key vertical markets – i.e., utilities/home energy, transport, manufacturing, and healthcare. Among the report’s headline findings: Continue reading “Telefonica O2 Looks to Ericsson to Deliver on 5G Energy Plan” →

Nokia’s New CEO Has Reasons for Optimism

by , posted in Net Transformation, Vendor Transformation
John Byrne – Service Director, Global Technology Telecom and Software

Summary Bullets:

• One era ended and another began, with new CEO Pekka Lundmark taking the reins August 1.

• While the company faces a host of challenges and questions to address, there are many recent signs of hope.

Nokia began life under its new CEO, Pekka Lundmark, on August 1 following the departure of his predecessor, Rajeev Suri. Lundmark’s appointment had been announced in March; he had originally planned to begin September 1 but the start date accelerated by one month from the original plan.

The appointment of Lundmark to the helm marks the end of what was an impressive 11-year tenure for Suri, who provided steady leadership through a tumultuous period that included the merger of Nokia and Siemens, and after a lengthy integration period, the eventual acquisition of Alcatel-Lucent. Continue reading “Nokia’s New CEO Has Reasons for Optimism” →