Thursday, October 20, 2016

Verizon Cites Wireless Profitability as Overall Revenue Shrinks

Verizon reported total Q3 operating revenues of $30.9 billion, a 6.7 percent decrease compared with third-quarter 2015. The company said that, excluding third-quarter 2015 revenues from since-divested local landline businesses, total operating revenues on a comparable basis (non-GAAP) would have declined 2.9 percent year over year. The company reported third-quarter 2016 EPS of 89 cents, compared with 99 cents per share in third-quarter 2015.

 “Verizon continues to deliver strong financial and operational results in highly competitive markets while positioning itself for future growth,” said Chairman and CEO Lowell McAdam. “While we transform our company in a challenging environment, we have maintained the financial flexibility to invest in our industry-leading networks to better serve customers, add scale to bring innovation to the mobile media and Internet of Things (IoT) markets, and increase dividends for a 10th consecutive year.”

Some highlights from the quarterly report:

Verizon Wireless


  • Verizon reported 442,000 retail postpaid net additions in third-quarter 2016, excluding wholesale device and wholesale IoT connections. 
  • At the end of Q3 2016, Verizon had 113.7 million retail connections, a 2.6 percent year-over-year increase. Verizon’s retail postpaid connections base grew 3.0 percent to 108.2 million, and retail prepaid connections totaled 5.5 million.
  • Total revenues were $22.1 billion in third-quarter 2016, a decline of 3.9 percent compared with third-quarter 2015, as more customers continued to choose unsubsidized device payment plans. Service revenues plus device payment plan billings increased 2.3 percent, to $19.3 billion, comparing third-quarter 2016 with third-quarter 2015.
  • The percentage of phone activations on device payment plans was about 70 percent in third-quarter 2016, compared with about 67 percent in second-quarter 2016. 
  • At the end of third-quarter 2016, Verizon Wireless had a total of about 35.8 million device payment plan phone connections, representing about 41 percent of the postpaid phone base.
  • Segment operating income was $7.6 billion, and segment operating income margin was 34.6 percent. In third-quarter 2016, Verizon Wireless generated $9.9 billion in segment EBITDA (non-GAAP), a year-over-year increase of 0.1 percent. Segment EBITDA margin (non-GAAP) was 44.9 percent, compared with 43.2 percent in third-quarter 2015.
  • Customer loyalty remained high. Retail postpaid churn was 1.04 percent in third-quarter 2016, a year-over-year increase of 11 basis points, as strong retention in the phone base was offset by increased churn in tablets. Retail postpaid phone churn was up 2 basis points year over year and remained below 0.90 percent for the sixth consecutive quarter.
  • The 442,000 retail postpaid net additions in third-quarter 2016 included 357,000 4G LTE smartphones. Net phone additions decreased sequentially to a loss of 36,000, as the net gain in 4G phones was offset by a net decline in basic and 3G phones. Tablet net additions totaled 221,000 in the quarter. All other postpaid net additions totaled 257,000, primarily due to sales of hum, Verizon’s telematics device.

Wireline

  • Total wireline revenue decreased 2.3 percent, to $7.8 billion, comparing third-quarter 2016 with third-quarter 2015. Retail consumer revenues grew 0.2 percent, to $3.2 billion, supported by consumer Fios revenue growth of 4.2 percent.
  • Total revenues for Fios services grew 4.4 percent, to $2.8 billion, comparing third-quarter 2016 with third-quarter 2015. Rebounding from net connection declines in second-quarter 2016 due to a work stoppage, Verizon added a net of 90,000 Fios Internet connections and 36,000 Fios Video connections in third-quarter 2016.
  • Fios revenue growth has been driven by a larger customer base, strong customer loyalty and consumer demand for higher internet speeds. Approximately 16 percent of the company’s Fios Internet base has opted for speeds of 100 megabits per second or higher, compared with 11 percent in second-quarter 2016. Customer demand for Custom TV remains strong and is consistent with prior quarters.
  • Wireline operating income was $156 million in third-quarter 2016, compared with a loss of $109 million in third-quarter 2015. Segment EBITDA (non-GAAP) was $1.7 billion in third-quarter 2016, up 10.1 percent from third-quarter 2015. Segment EBITDA margin (non-GAAP) was 21.2 percent in third-quarter 2016, compared with 18.9 percent in third-quarter 2015, due to Fios growth and cost management. Verizon believes it will continue to make progress in expanding wireline EBITDA margin.
  • During the third quarter, Verizon Enterprise Solutions entered into new agreements or began work with a number of clients, including The American Red Cross, ADP, CA Technologies, CDK, Citrix, Colgate-Palmolive Company, Concentrix, ICON Clinical Research, Juniper Networks, the National Weather Service, PTC, Sage, Steptoe & Johnson LLP, Vantiv, Inc., Viacom, Virginia Information Technologies Agency and the French subsidiary of Allianz Worldwide Partners.


http://www.verizon.com/about/news/strong-wireless-profitability-and-customer-loyalty-renewed-fios-growth-highlight-verizons-3q

NTT Com to Offer Mirantis Managed OpenStack

Mirantis and NTT Communications will partner to offer fully managed Private OpenStack as a service in NTT Com Enterprise Cloud and its data center services across the globe. Specifically, NTT Com will offer Mirantis Managed OpenStack on NTT Com Enterprise Cloud’s Metal-as-a-Service.

NTT Com is Mirantis’ first data center services partner.

“OpenStack is an essential component of tomorrow’s private cloud architectures, and Mirantis has industry-leading technology and processes in its OpenStack software and services, enabling them to manage OpenStack infrastructure as code,” said NTT Com VP of Cloud Services, Hideki Kurihara. “Our technical and go-to-market collaboration will enable true experience of operationalized OpenStack, delivered as a service globally.”

Mirantis Managed OpenStack is a managed private cloud based on industry-leading Mirantis OpenStack software. The offering gives customers 24x7 “as a service” operations by Mirantis and up to 99.99% SLAs on Mirantis’ 100 percent open source software and tooling.

“With direct presence in 87 countries and regions, NTT Group commands the largest data center footprint in the world,” said Mirantis CMO and co-founder, Boris Renski. “Through this partnership we’ll be able to deliver instant-on, hands-off managed cloud experience for our global customers with compelling economics."

http://www.ntt.co.jp/index_e.html
http://www.mirantis.com

China Mobile Now Serves 844 Million Customers

China Mobile reported revenue of RMB542.7 billion (US$80.30 billion) for the first nine months of 2016, up by 4.3% over the same period last year; of which, revenue from telecommunications services was RMB481.2 billion, up by 5.4% over the same period last year. There was a profit of RMB88.1 billion, up by 3.1% over the same period last year.

Some highlights:

  • As of 30 September 2016, the number of mobile customers was 844 million, representing a net increase of 17.42 million for the first three quarters. 
  • ARPU of mobile customers increased by 1.7% year-on-year to RMB60.0. 
  • Of the mobile customers, the number of 4G customers was 481 million, representing a net increase of 168 million for the first three quarters. 
  • Handset data traffic increased by 131% over the same period last year. 
  • As of 30 September 2016, the total number of wireline broadband customers was 74.24 million. 
  • The number of net additional wireline broadband customers for the first three quarters was 19.21 million with ARPU basically remaining stable at RMB33.0.

http://www.chinamobileltd.com/en/global/home.php

Momentum Builds for Citizens' Band LTE (3.5 GHz)

The Citizens Broadband Radio Service (CBRS) Alliance, which was formed in February 2016 with the goal of making LTE-based solutions in the 3.5 GHz CBRS band widely available, announced the addition of Accelleran, Airspan Networks, American Tower Corp., AT&T, Baicells, CableLabs, Ericsson, ExteNet Systems, Nsight, Ranzure Networks, Rise Broadband, and ZTE as members. Founding members of the alliance include Access Technologies (Alphabet), Federated Wireless, Intel, Nokia, Qualcomm and Ruckus Wireless (now part of Brocade).

“For LTE-based solutions in the shared CBRS band to be successful, we need a wide range of ecosystem partners, infrastructure, equipment and network providers, to work together closely,” said Michael Peeters, vice president Innovation Portfolio, Nokia and President of the CBRS Alliance. “We are thrilled to welcome all the new members to the CBRS Alliance and look forward to working together to provide solutions toward in-building and outdoor cellular coverage.”

“CBRS is creating opportunities to bring the benefits of LTE technology to a wider ecosystem,” said Neville Meijers, VP Business Development, Qualcomm Technologies Inc., and chairman of the board for the CBRS Alliance. “CBRS enables new kinds of deployments and business models, from LTE-based neutral hosts that can serve multiple service providers, to dedicated networks serving various entities such as enterprises or IoT verticals.”

http://www.cbrsalliance.org


  • In April 2015, the U.S. Federal Communications Commission (FCC) adopted rules for CBRS, which opens 150 MHz of spectrum (3550-3700 MHz) for commercial use — while providing necessary protection of incumbent users of the band. Spectrum access is actively coordinated based on priority and granular location, making previously allocated spectrum available to new entrants and services.



Orange Business Services Launches Datavenue for IoT

Orange Business Services announced the international launch of its Datavenue service for helping enterprises implement IoT.

Datavenue includes four modules:

  • Select relevant objects and sources of data. Orange offers a full range of certified and tested connected objects, such as sensors, cameras or modules to connect existing assets. Datavenue has a catalog of data that includes population movement analytics using anonymized data from mobile networks.
  • Connect objects reliably with the most suitable and secured networks. A truck travelling cross borders or an agricultural sensor in a field would require different networks. To adapt to the wide diversity of needs, Orange provides a broad range of connectivity options. These include future-proof global cellular networks and innovative capabilities, such as eUiCC, worldwide fixed and satellite networks, as well as low-power solutions, such as LoRaTM.
  • Manage data to improve efficiencies and create enhanced services. For example, a construction company can monitor cranes worldwide to prevent problems and reduce maintenance costs. Managing data in real-time enables technicians to solve issues remotely or to arrive on site with the right material, thereby reducing service interruptions. Orange offers both cloud-based and on-premises software solutions, encompassing remote device management, processing and visualization.
  • Control key elements of enterprise transformation projects. Orange experts ensure end-to-end security and data protection, integration with information systems and service scalability. Throughout the entire project and beyond, customers can rely on Orange to ensure the solutions are future-proof and adapted to market evolutions.

“We have developed extensive vertical expertise around IoT and data analytics in several sectors, including automotive, industry, smart cities, healthcare and smart homes. Our solutions have already improved performance and employee safety through industrial machinery monitoring, enhanced patient care with remote assistance, and enriched citizen well-being with smart city services. This is now all being brought together to support the international launch of Orange Datavenue,” says Olivier Ondet, IoT and analytics vice president, Orange Business Services.

The service has been available in France since last year.

http://www.orange-business.com/en/datavenue

Microsoft Windows Server 2016 Now Runs on Amazon EC2

AWS announced the ability to run Windows Server 2016 on Amazon Elastic Compute Cloud (EC2) in all AWS regions globally.  The lastest version of Windows Server is supported in four distinct forms:


  • Windows Server 2016 Datacenter with Desktop Experience – The mainstream version of Windows Server with support for both traditional and cloud-native applications. 
  • Windows Server 2016 Nano Server -A cloud-native, minimal install that takes up a modest amount of disk space and boots more swiftly than the Datacenter version, while leaving more system resources (memory, storage, and CPU) available to run apps and services. 
  • Windows Server 2016 with Containers – Windows Server 2016 with Windows containers and Docker already installed.
  • Windows Server 2016 with SQL Server 2016 – Windows Server 2016 with SQL Server 2016 already installed.

https://aws.amazon.com/blogs/aws/

Telia Carrier Delivers Backhaul to OJUS Sea Cable for LATAM Connectivity

Telia Carrier has established a new network Point-of-Presence at the OJUS Cable Landing Station in Hollywood, Florida, ensuring a resilient network option for customers wishing diverse connectivity to the Nap of the Americas in Miami and Equinix MI3 in Boca Raton as well as Telia Carrier's global IP backbone, AS1299.

The cable landing station located in Hollywood provides Telia Carrier customers access to important subsea cable systems including MAYA-1, Americas-II and Columbus-III, which link the US to the Caribbean, Central and South America.

Telia Carrier offers options from stm-x all the way to 100 Gb/s increments as well as terabit capacity to IP and Transmission customers.  In addition to the Miami and Boca Raton facilities, Telia Carrier can provide diverse high capacity services extending to over 70 Pops in North America and internationally as well.

http://www.teliacarrier.com

See also