NEC and Netcracker Delve Deeper into 5G Xhaul

Emir Halilovic, Principal Analyst

Summary Bullets:

• NEC and Netcracker wrap their respective professional services and domain orchestration solution around Juniper’s IP networking and ADVA’s open line system for a multi-layer, multi-vendor, and automated 5G Xhaul.

• The cooperation has great potential to increase each of the vendors’ credibility in 5G transport, but must show tangible advantages in functionality and cost savings to uproot entrenched competitors.

The 5G transport market continues to heat up, as operators are gradually waking up to the fact that transport renovation and automation will be one of the key ingredients of their future end-to-end 5G architecture. In that context, accelerated activity by NEC and Netcracker in 5G Xhaul illustrates well the importance of transport for 5G, and the size of the market opportunity awaiting. NEC, Netcracker, Juniper, and ADVA contributed their leading capabilities to their joint solution introduced in September.

The offering ticks several important boxes:

• IP/optical integration to simplify and streamline transport architectures;

• Support for 400ZR interfaces for cost-optimized, high-speed coherent transport;

• Open optical line system technology that can seamlessly support gear from multiple transport vendors;

• Multi-layer service and network lifecycle management to manage increasing complexity that accompany the migration to 5G architectures; and

• Closed loop automation to improve agility and respond more quickly to changing network traffic conditions.

NEC’s 5G Xhaul transformation services will serve both as a key ingredient of the solution and as a differentiator, especially for operators keen on composing technology elements from different vendors but lacking in-house capabilities to do so. The multi-vendor nature of the solution should also resonate well with customers seeking more openness and choice in their transport networks.

Including Netcracker’s Network Domain Orchestration into the offering is particularly significant and will appeal especially well with operators seeking flexibility and advanced capabilities like network slicing lifecycle management in their Xhaul networks. Network slicing functionality support is generally present in most transport networking elements today, both in IP and packet-optical domain. But deploying, maintaining, and decommissioning end-to-end network slices requires multi-layer and multi-domain orchestration, and is far from trivial. Even converged IP/optical networks need multi-layer and multi-domain coordination to successfully provision network slices and match them with services deployed on the network.

NEC’s and Netcracker’s solution enters a highly competitive Xhaul market, with already slanted playing field. Large radio vendors like Ericsson, Huawei, Nokia, and ZTE have wide and deep Xhaul offerings, and enjoy the opportunity to bundle their transport with radio access. Historically, this has meant that the attach rate between radio and Xhaul has been significant (50-60%); this significantly shrinks addressable market for any non-radio vendor. However, that could be changing as many vendors look to 5G to alter traditional infrastructure procurement paradigms. NEC’s services offering and Netcracker’s Network Domain Orchestration may provide important differentiators for operators seeking advanced Xhaul capabilities, but the key to success will be to demonstrate the integrated solution’s capabilities in live networks – both in terms of advanced functionality, such as network slicing, and in delivering significant and measurable improvement in terms of underlying network operation economics.

Continue reading “NEC and Netcracker Delve Deeper into 5G Xhaul”

Orange and Nokia Push the Circular Economy Forward with RAN Refurbishment

Andy Hicks, Principal Analyst

Summary Bullets:

  • Orange’s expansion of its equipment refurbishing efforts to the radio network represents new levels of scale, complexity, and maturity in its circular economy initiative.
  • Fears that reused radio equipment will not match the improved energy consumption of new units have not been borne out in real-world usage.

In October 2021, Paris-based multinational telecoms operator Orange announced an agreement with Nokia to increase its use of refurbished network equipment across its entire 26-country footprint. Beginning with radio access network (RAN) equipment, the arrangement will extend to other network infrastructure elements. In taking this step, Orange is establishing an advanced position that it hopes other telecoms groups will follow. Continue reading “Orange and Nokia Push the Circular Economy Forward with RAN Refurbishment”

Telefónica Tech Blockchain Platform Bolstering Telecom Tower Management

John Byrne, Service Director

Summary Bullets:

  • Telefónica Tech will utilize blockchain to accelerate automation within mobile operator networks and foster ecosystem development.
  • With new concepts such as ORAN promising more vendors within operator architectures, the ability to establish transparency will be crucial. Blockchain potentially addresses this challenge.

Spanish telecommunications infrastructure management company Atrebo announced in October that it will deploy Telefónica Tech’s blockchain platform to digitize over 200,000 towers and other telecommunications infrastructure assets. Continue reading “Telefónica Tech Blockchain Platform Bolstering Telecom Tower Management”

Optical Pluggables Evolution: Higher Performance Brings Extended Usability

Emir Halilovic, Principal Analyst

Summary Bullets:

  • The next generation of digital optical pluggable interfaces will have deep implications on traditional optical transport platforms.
  • The attraction of pluggable form factors, and further standardization, will shape the optical transport market going forward.

When networking giant Cisco acquired optical solutions specialist Acacia Communications in 2019, one of the proclaimed goals of this high-profile move was powering the next stage of IP-optical integration. Mating Cisco’s routers with miniaturized coherent pluggable optical interfaces allows clients to simplify their transport networks and, in some scenarios, eliminates the need for some optical transport network elements in the architecture. This approach works best in metro aggregation scenarios, where span lengths match the capacity sweet spot of the currently available crop of pluggables, like 400G-capable 400ZR. Continue reading “Optical Pluggables Evolution: Higher Performance Brings Extended Usability”

Vodafone Issues 5G/IoT Call to Action to UK Government in Advance of COP26

John Byrne, Service Director

Summary Bullets:

• In a new report, Vodafone warned that current initiatives underway by the UK government are insufficient to help meet aggressive carbon emission reduction goals, including a 2035 78% reduction target.

• Vodafone and its research partner WMI Economics offered solutions designed to help jumpstart progress on these aggressive goals by deploying 5G and IoT to a host of vertical segments, notably agriculture, manufacturing, and transportation.

UK telecom operator Vodafone warned in September that the UK government has much more to do to meet aggressive emissions reduction targets that call for a 78% reduction in carbon emissions by 2035 and net zero emissions by 2020. The company believes its Internet of Things (IoT) solutions can help.

In a new report issued in conjunction with political communications consultancy WPI Economics, Vodafone pointed to slow progress in important sectors including agriculture, manufacturing, and transport where IoT could potentially deliver important progress. In these three sectors alone, Vodafone estimates that existing IoT technology has the ability to reduce between 11.7 million and 17.4 million metric tons in annual greenhouse gas emissions – at the high-end, that would represent 4% of total UK emissions, or approximately the total emissions in the Northeast of England. The benefits of IoT vary by population density – Vodafone estimates that in city centers, 87% of the benefit would come from smart transportation solutions; by contrast, agriculture would drive 38% of emission reductions in rural areas.

TOTAL POTENTIAL ANNUAL CO2 SAVINGS FROM DIGITAL TECHNOLOGY
BY SECTOR AND SCENARIO

Source: Vodafone/WPI Economics “Connecting for Net Zero: Addressing the climate crisis through digital technology” (September 2021)

In order to fully realize these emissions reductions, Vodafone issued a call to action for the UK government. Among its recommendations:

• Set clearer targets and benchmarks for the adoption of digital technology within the company’s 2050 zero net emissions strategy.

• Incentivize adoption of IoT and 5G technologies in key sectors to accelerate emissions reductions.

• Increase the weight given to carbon reduction technologies and vendors’ internal carbon reduction targets in procurement processes.

• Expand the role of UK programs such as Digital Catapult and Connected Places Catapult that are tasked with accelerating digital technology innovation and adoption in high impact sectors of the economy.

• Allocate £500 million of public funding to regional innovation centers focused specifically on IoT and 5G applications that can reduce carbon emissions.

• Enable interoperability among solutions by introducing regulation to drive common security and data standards in IoT devices.

• Introduce a regulatory and policy framework that “creates the right signals for investment” in mobile networks across the UK.

For all the focus on the lead-up to COP26, the next annual UN climate change conference happening in Glasgow, Scotland in November, Vodafone also offers another, less altruistic rationale for focusing on 5G-based digital solutions to reduce carbon emissions: jobs. According to the September report, Vodafone estimates that 5G could add £6.3 billion to the value of UK manufacturing by 2030 and create 175,000 additional jobs across the economy.

Continue reading “Vodafone Issues 5G/IoT Call to Action to UK Government in Advance of COP26”

H1 2021 CapEx Up Modestly for U.S. Operators, but Supply Chain Challenges Loom

John Byrne, Service Director

Summary Bullets:

  • Through midyear, U.S. network operators have performed as expected on capital expenditures, posting a modest increase in spend over last year’s COVID-dampened investment. T-Mobile USA stands out with a large year-to-year increase as it embarks on aggressive 5G buildout plans.
  • H2 2021 spending appears likely to also be up slightly compared to 2020; however, as evidenced by revised AT&T guidance, looming supply chain challenges could stymy some plans, particularly in fiber deployment.

A GlobalData analysis of U.S. operator financial results based on mid-year 2021 earnings releases shows capital expenditures (CapEx) spending increased just over 7% compared to COVID-impacted H1 2020. In total, the nine publicly reported carriers spent $38.5 billion in CapEx. GlobalData estimates that the big three operators that account for nearly 70% of total U.S. CapEx – AT&T, Verizon, and T-Mobile USA – spent just over $26 billion, up 6.1% from H1 2020. Continue reading “H1 2021 CapEx Up Modestly for U.S. Operators, but Supply Chain Challenges Loom”

25G PON Goes Live, Needs More Deployments to Break into Mainstream

Summary Bullets:

  • 25G PON is market ready and likely to become the technology of choice for operators seeking faster-than-10 Gbps FTTP now and in the near future.
  • Emir Halilovic, Principal Analyst

    The future of 25G PON directly depends on the magnitude of early operator demand and adoption of advanced use cases requiring 25G-specific capabilities.

The Nokia/Proximus announcement of world’s first 25G PON deployment at the end of May was a significant milestone for the global broadband industry. It primarily showed that the 25G PON technology is market ready and significantly outperforming XGS-PON, which is only now becoming mainstream. It also symbolized the increased importance of Europe as a competitive battleground for fixed broadband, which will only continue heating up with increased broadband investment fueled by national broadband plans and post-COVID recovery funds. Finally, the launch served to validate unique capabilities of Nokia’s Quillion chipset, currently the only vendor solution capable of delivering 25G PON. Continue reading “25G PON Goes Live, Needs More Deployments to Break into Mainstream”

Automation, AI, Cloud, and Services – The Foundation for 5G

Glen Hunt – Principal Analyst

Summary Bullets:

Fulfilling the Promise of 5G – 5G requires a fully automated and intelligent network infrastructure capable of delivering high speed broadband and new enterprise and industrial network services.

Taming Complexity – AI and agile cloud-based resources are necessary to deliver a fully digitized and flexible services environment, simplify complex network management and reduce operational costs.

5G network expectations have been well articulated, but meeting these lofty expectations is another matter. Today’s networks are multi-layer, multi-technology, and multi-vendor, which adds to the depth of the challenge at hand. The goal is to deliver new network and application services in a manner that satisfies on-demand user expectations over a network infrastructure that grows more complex over time.

The good news is that automation and AI technologies are steadily ramping up to address the complexity inherent in these multi-X networks; however, before automation and AI can be instrumented, the network infrastructure must be made programmable, a monumental task. The following analysis explores each of the key capabilities needed to establish an intelligent 5G network and note significant advances in vendor solutions. Continue reading “Automation, AI, Cloud, and Services – The Foundation for 5G”

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

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?

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?”