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 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.
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”→
Samsung has traditionally found itself outside of the sphere of influence with European operators, but a combination of emerging vRAN and O-RAN technologies and geopolitics is creating a new opportunity.
The company’s O-RAN deal with Vodafone UK, announced in June, is small in size but could represent the beginning of a long tail of opportunity.
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.
• 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”→
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”→
At Huawei’s recent analyst event, the company said that it was placing greater emphasis on building a services and software partner ecosystem.
Although Huawei has historically not built much of a partner ecosystem outside its local deployment and maintenance relationships, it now has several pieces in place to make more progress in the area.
At the annual Huawei Analyst Summit (HAS) in April 2021 – the second year it was conducted largely virtually – Huawei’s Software and Services leadership went into detail on its advancements and strategies for the group. Discussions touched several times on Huawei’s desire to build up its partner ecosystem, both to expand the innovation it can deliver to clients and to extend its reach to additional service provider business lines. Huawei has historically maintained a substantial ecosystem in local country network deployment and operations field forces, but its progress on building a service creation ecosystem has been less apparent. At HAS, Huawei executives made clear they understand that developing an ecosystem is vital to its goal of emphasizing software and services as a means to enhance customer loyalty and diversify its revenue stream in the wake of ongoing hardware supply chain challenges. Continue reading “Huawei Software and Services Lays the Foundation for an Ecosystem Play”→
• 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?”→