Thursday, August 15, 2013

China Mobile: Data Traffic Up 129%, Data Revenue Up 62%, Profit up 1.5% 1H2013

China Mobile, the world's largest mobile operator, reported operating revenue for the first half of 2013 reached RMB 303.1 billion (US$49.58 billion), up 10.4% over the first half of 2012, while revenue from telecommunications services was up 6.8% to RMB 285 billion. Net profit increased 1.5% to RMB 63.13 billion.

Some operational highlights for China Mobile in the first half of 2013:

  • Customers over 740 million, up 8.4% from 683 million at 1H2012.
  • Data services revenue rose to 33.5% of revenue from telecommunications services.
  • Wireless data traffic revenue up 62.2% while wire data revenue grew 129% over 1H2012.
  • TD handset sales were up ~1.5 fold
  • 3G customers are now over 137 million.
  • 3G base stations reached 361,000
  • The company plans to deploy >200,000 TD-LTE base stations in 2013.
  • Wi-Fi APs reached 4.10 million
  • WLAN offload accounts for 75% of data traffic -- a low cost bearer
  • Growing TD device supply chain 595 new TD handset models available, virtually all smartphones
  • So far, China Mobile has 25 TD-LTE trial devices, >100 models under development, of which 15 handsets intended for commercial use.
  • China Mobile plans to procure < 1 million TD-LTE devices this year.
  • Voice usage was up 3.7% to 2,061 billion minutes.
  • China Mobile's transmission network increased by 23,600 of fiber route miles since last year.
  • China Mobile's app store has 336 million cumulative registered customers. There were 506 million application downloads in 1H2013.
  • In 2013, China Mobile aims to realize a 15% decrease in power consumption per unit of business.

Looking forward, the company says its top challenges include China's Slowing macroeconomic development, rising mobile penetration, increasing notable OTT headwinds, and ntensifying competition among operators.

An investor presentation in English is posted here:

Sprint Implements Long haul 100G with Ciena, Tests 400G

Sprint and Ciena announced two milestones in speed and capacity on Sprint’s network:

  • Sprint has deployed one of the longest 100 Gbps circuits in the United States with a live transmission that required no signal regeneration over a distance of 2,100 km, or 1,304 miles, between Chicago and Fort Worth, Texas. The 100Gbps link uses Ciena WaveLogic 3 coherent optical processors on the 6500 Packet Optical Platform
  • Last month, the companies successfully completed a live 400Gbps trial on Sprint’s network in the Silicon Valley area using existing Sprint fiber infrastructure and Ciena’s 6500 with WaveLogic 3 cards. The high-capacity link operated without error. The companies said this demonstrated the viability of using 400Gbps channels alongside existing channels carrying live customer traffic. 

“Customers have expressed their hunger for higher speed networks to support their substantial data needs, which we project will only continue to grow exponentially,” said Wayne Ward, vice president-Business and Product Development, Sprint. “The 400Gbps trial demonstrates our ability to offer higher speeds with our existing fiber, which means that our customers can feel assured that our network is future-proofed to meet their needs as they evolve. The delivery of 100Gbps and 400Gbps speeds will be critical as we launch our Ethernet Wave Services and support a growing wireless infrastructure.”

As announced in 2012, Sprint is upgrading its optical backbone network with Ciena’s 6500 Packet-Optical Platform as part of its Network Vision initiative.

  • Ciena has been a strategic supplier to Sprint since 1998.

Emerald Networks Signs Vodafone Iceland for New Cable

Vodafone Iceland has signed a contract for capacity on Emerald Networks's new submarine cable system, "Emerald Express", which is a new-build system connecting North America to Europe, with a branch to Iceland. The system is scheduled to be ready for service in Q3 2014, and Vodafone Iceland plans on using it for communications for at least the next 15 years. Vodafone is the first Icelandic company to sign a contract with Emerald Networks.

The cable landing station in Iceland is in the vicinity of Grindavik, and Emerald will provide backhaul to Reykjavik and on the Reykjanes Peninsula.

  • Emerald Networks' submarine cable system span 6,700 km along the "Great Circle" route connecting North America to Europe via Iceland. The company has previous calculated that this northerly route will have a latency of less than 62 milliseconds round trip from New York to London, making it one of the fastest networks across the Atlantic. 

Fujitsu Gains MEF CE 2.0 Certification

Fujitsu Network Communications’ FLASHWAVE 9500 Packet Optical Networking Platform and FLASHWAVE CDS Micro Packet Optical Networking Platform have achieved Carrier Ethernet (CE) 2.0 certification from the Metro Ethernet Forum (MEF).

Specifically, Fujitsu’s FLASHWAVE 9500 is now MEF CE 2.0 certified for E-Line, E-Access, and E-LAN services and the FLASHWAVE CDS Micro Packet Optical Networking Platform is now CE 2.0 certified for E-Line and E-Access services.  

Fujitsu’s FLASHWAVE 9500 integrates Carrier Ethernet, ROADM, and SONET/SDH technologies. With the addition of the MEF certification, the FLASHWAVE 9500 forms a unified CE 2.0 Ethernet service delivery platform that can deliver any of the MEF services over any type of access network. The FLASHWAVE CDS system is an access and aggregation solution for mobile backhaul and commercial/enterprise Ethernet services.

“Achieving MEF CE 2.0 certification on our FLASHWAVE platforms is an important milestone for Fujitsu. With this certification, we are assuring customers that our solutions enable standardized, interoperable services with which Service Providers can offer world class carrier grade Ethernet connectivity while creating new revenue generating opportunities,” said Rod Naphan, Senior Vice President, Planning, Fujitsu Network Communications.

T-Mobile USA Sells $500 Million in Notes

T-Mobile USA will sell $500,000,000 aggregate principal amount of its 5.250% Senior Notes due 2018 (the “Notes”) in a private offering. The offering is scheduled to close on August 21, 2013, subject to satisfaction of customary closing conditions.

Mellanox Completes Acquisition of Kotura

Mellanox Technologies completed its previously announced acquisition of Kotura, a developer of advanced silicon photonics optical interconnect technology, for a total cash purchase price of approximately $82 million.

Kotura holds over 120 granted or pending patents in CMOS photonics and packaging design.  The company has made a number of ground breaking innovations in optical interconnects by integrating multiple high speed active and passive optical functions onto a silicon chip.

Kotura’s current location in Monterey Park, California, will serve as Mellanox’s first R&D center in the United States.

Ericsson appoints Head of Business Unit Modems

Ericsson has appointed Mats Norin as Vice President and Head of Business Unit Modems.  He will also take a seat on Ericsson’s Global Leadership Team, reporting to Chairman of Business Unit Modems and Head of Group Function Strategy, Douglas Gilstrap.

Business Unit Modems includes the design, development, supply and sales of the LTE multimode thin modem solutions, including 2G, 3G and 4G interoperability. On August 2, 2013, this activity was transferred to Ericsson from ST-Ericsson where Norin served as Executive Vice President and Chief Technology Officer since 2012.

Hans Vestberg, President and CEO said: “The LTE multimode thin modems is an important enabler for our vision of 50 billion connected devices in a Networked Society. I am pleased that Mats Norin, with his extensive industry experience, will lead the work to realize the potential in this business. Our focus is on bringing the best modems to market, and to work closely with customers to integrate these modems into their products.”

Silicon Labs Launches SyncE-Compliant Clock

Silicon Labs introduced a low jitter, low power timing solution for high-speed networking equipment based on the Synchronous Ethernet (SyncE) standard.

The new Si5328 precision clock multiplier and jitter attenuator boasts jitter performance as low as 263 femtoseconds RMS and is fully compliant with ITU-T G.8262 SyncE clock requirements including EEC Options 1 and 2. The SyncE clock can generate any output frequency ranging from 8 kHz to 808 MHz and from any input frequency from 8 kHz to 710 MHz. 

“As today’s telecom infrastructure rapidly migrates from legacy standards to SyncE, equipment manufacturers require fully SyncE-compliant timing solutions that not only offer low jitter performance but also reduce design complexity and power consumption,” said Mike Petrowski, vice president and general manager of Silicon Labs’ timing products. “Silicon Labs’ new Si5328 clock multiplier offers the most advanced SyncE timing solution available, giving designers an unparalleled margin in jitter performance, BOM cost, footprint and energy efficiency.”

Verizon Hit by Thieves in Maryland

Verizon has experienced a series of thefts at company garages and central offices in Maryland.

In recent weeks, thieves have stolen approximately $300,000 worth of FiOS-specific installation and testing equipment, tools and copper wire.  The company is offering a reward of up to $10,000 for information leading to the arrest and prosecution of individuals responsible.

Thieves also stole copper wire in May through early August from Verizon work centers in Bel Air; Brooklyn; Churchville; Edgewood; Fork; Hampstead; Jarrettsville; North East; Owings Mills; Parkton; Randallstown; Sparks; and Taneytown.  In some cases, laptops also were taken.

Maxim Integrated to Acquire Volterra Semiconductor

Maxim Integrated Products agreed to acquire Volterra Semiconductor Corp. (NASDAQ:VLTR) for $23 per share, which represents a 55% premium to Volterra Semiconductor's closing share price on August 14, 2013. The transaction value is approximately $605 million equity value or $450 million net of Volterra's cash position of approximately $155 million.

Volterra supplies high-current, high-performance, and high-density power management solutions. The company develops highly integrated solutions primarily for the enterprise, cloud computing, communications, and networking markets. Volterra's portfolio of highly integrated products enables better performance, smaller form factors, enhanced scalability, improved system management, and lower total cost of ownership.