Huawei Analyst Summit 2017: Expanded Video Focus, and Velocity

Erik Keith – Principal Analyst, Fixed Access Infrastructure

Summary Bullets:

• Huawei’s 2017 Analyst Summit showcased the company’s clear progress in the video market on multiple levels, from the integration of video into Huawei’s strategic vision to the hiring of an ex-AT&T video marketing director as CMO for Video Products.

• While Huawei has made clear, tangible progress in the video space, there is still room for improvement, evidenced by its more acute focus on telecom/IPTV operators, at the expense of substantial opportunities with cable operators.

Huawei’s Addressable Video Markets, and Monetization: On day one of the 2017 Analyst Summit, Huawei’s keynote speakers highlighted the company’s heightened commitment to video. This includes Huawei’s segmentation of the video market into three key market segments: the $650 billion entertainment video sector, the $350 billion industry video sector and the $18 billion communication video sector. Entertainment video encompasses live and linear TV, VoD, OTT video and even user-generated content (UGC), Industry video includes telemedicine, remote education and “safe city” applications (supporting a network of public safety cameras, including HD feeds) and Communications video is video conferencing and video calls.
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Accelerating 5G: The Pivotal Role of 2017

Peter Jarich

Peter Jarich – VP, Consumer Services and Service Provider Infrastructure

On the proverbial “Road to 5G,” you might think that 2017 is just another year, taking us just a little closer to the commercial 5G networks and services we’ve all heard will arrive in 2020.  You would be wrong, on multiple fronts.

First off, the analogy itself is somewhat flawed.  5G is not a finish line being raced towards; just like 4G LTE, the technology will evolve long after initial services debut, with most operators launching services at their own pace.  Perhaps more importantly, the earliest commercial service and network launches won’t be coming in 2020.  They’ll arrive sooner.  An extreme eagerness to get 5G up and running across the world means that we will see large-scale 5G NR (the global 5G standard) based services starting in 2019 along with pre-5G NR efforts starting as soon as the end of this year. One year sooner than originally expected may not seem like a big deal, but when you’re talking about the development of new technologies and new ecosystems, it’s massive. Read more of this post

Nokia Shuffle Intensifies Focus on Mobile and Services, but Managerial Changes Are Ill Timed

John Byrne

John Byrne – Service Director, Service Provider Infrastructure

Summary Bullets:

  • Nokia will divide up its Mobile Networks and Chief Innovation and Operating Officer units to align with the company’s ‘Rebalancing for Growth’ strategy unveiled in November 2016.
  • The moves create greater visibility for Nokia’s services unit, and should lead to improved operating efficiency and strategic investment, but significant management changes give the impression of disarray.

On March 17, Nokia announced changes in its organization and leadership team, to better execute the strategy unveiled by CEO Rajeev Suri at the company’s Capital Markets Day in November 2016:

  • Mobile Networks will be divided into two distinct organizations: Products & Solutions and Global Services. Marc Rouanne will assume control of the Products & Solutions unit, while current Mobile Networks President Samih Elhage will step down. Igor Leprince will continue to head up Global Services and will be added to Nokia’s Group Leadership Team (GLT), an indication of the growing importance of services.
  • Despite being placed within Mobile Networks, Global Services will house all managed network services and company-wide global service delivery. The Global Services unit will also be responsible for developing a common approach for processes and tools, managing a Services Committee to coordinate services development across different groups, with a common Customer Delivery Manager responsible for managing all services for a single customer.
  • Global Services will also continue to drive emerging strategic service areas such telco cloud, ‘x as a service’ (XaaS), prime integration and transformation consulting.
  • The former Chief Innovation and Operating Officer (CIOO) organization will be split into three: A traditional ‘operating’ unit will focus on internal operations, while responsibility for ‘innovation’ will revert to CTO Marcus Weldon and Chief Strategy Officer Kathrin Buvac. Monika Maurer, currently COO of the fixed business, will became company COO; both Maurer and Weldon will join the GLT. (Buvac is already a member.)

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AT&T, ECOMP and the Increasingly Difficult Pace of Virtualization

Peter Jarich

Peter Jarich – VP, Consumer Services and Service Provider Infrastructure

Summary Bullets:

  • Last week, AT&T leveraged its Shape event in San Francisco to unveil 5G launch plans, new virtualization goals for 2017, and herald the handover of ECOMP to the Linux Foundation.
  • While not immediately obvious, open-sourcing ECOMP and meeting its virtualization goals (75% of network functions by 2020) are intimately linked because, every year, virtualizing additional functions will only become harder and harder – and AT&T will need all the support it can find.

Last week, AT&T held its co-called Shape event in San Francisco.  On the agenda: progress with its AirGig solution, initial commercial 5G markets for this year and 2017 virtualization goals, and success in moving continued development of its ECOMP platform to the Linux Foundation.  Coming out of the event, an article from SDxCentral called out that these last two items were intrinsically linked – open sourcing ECOMP is critical to helping AT&T execute on its long-term virtualization goals. Read more of this post

Cisco, THX Introduce New Video Quality Optimization Solutions to Ensure Enhanced End-User Experiences

Erik Keith - Principal Analyst, Fixed Access Infrastructure

Erik Keith – Principal Analyst, Fixed Access Infrastructure

Summary Bullets:

  • Cisco debuted its Infinite Video Platform (IVP) Labs at CES 2017, confirming the trend of top-tier systems vendors in developing comprehensive video quality measurement solutions.
  • THX has teamed with Conviva to deliver an audio and video streaming quality certification program, with the goal of establishing a “universal standard for quality in the streaming world that consumers can trust,” but the prospects for industry-wide acceptance remain uncertain.

With the USD 400 billion global pay-TV/video market as a revenue foundation, and an increasing percentage of pay-TV/video content being delivered in a non-linear fashion, video quality optimization is becoming an increasingly critical issue for both operators and their system vendor suppliers. Optimizing end-user satisfaction – or, more accurately, quality of experience (QoE) and therefore ongoing revenue potential – is the prime directive. Read more of this post

2G Shutdowns, Multivendor NFV: The Glacial Pace of Telecom Change vs. Future Aspirations

Peter Jarich

Peter Jarich – VP, Consumer Services and Service Provider Infrastructure

Summary Bullets:

  • Last week, AT&T highlighted how it had shut down its 2G network on January 1st. On the same day, Ericsson announced it had worked with Cisco to address Vodafone Hutchison Australia’s SDN and NFV needs.
  • While not formally linked, both events showcase how slowly telecom service providers change the way they think about and run their networks – with implications for IoT and 5G plans.

Last Monday was a holiday in the U.S. The good folks at AT&T, Cisco and Ericsson, however, weren’t taking it easy. They had news to announce.

AT&T – with a blog post from Chief Strategy Officer John Donovan – started off the week by talking up the shutdown of its 2G network at the start of the year, positioning it as a part of their 5G network evolution. Ericsson and Cisco had their own milestone: following the signature of a “global business and technology partnership” back in November 2015, the two network infrastructure heavyweights were eager to announce a joint win at Vodafone Hutchison Australia (VHA), supplying SDN and NFV solutions including data center assets, SDN controllers, service and network orchestration products, and VNFs. While the two had already won other joint deals, the win at VHA was heralded as “the first major collaboration between Ericsson and Cisco on Telecom Cloud infrastructure.” Read more of this post

2016: What Was Most Important in the Service Provider Network (or, at Least, Most Read About)

Peter Jarich

Peter Jarich – VP, Consumer Services and Service Provider Infrastructure

Summary Bullets:

  • By looking to our top-read analyses of 2016, we can paint a picture of what was top-of-mind for telecom network players – operators and vendors – over the past 12 months.
  • Key themes included SDN and NFV, IoT, and the rivalry between Nokia and Ericsson. This also implies other important themes were getting less attention than they probably should.

While it’s common for the start of a new year to be accompanied by predictions for telecom and technology markets, it’s just as important to look back at the year that just passed. Why? While predictions are speculative, highlights from the past 12 months point to very real trends and themes. What’s more, most good predictions recognize that the themes and trends of 2017 will be built from (evolutions of) the themes and trends of 2016. Read more of this post