Monday, March 5, 2018

Deutsche Telekom prices IoT at 10 Euros for Ten Years

Deutsche Telekom, in partnership with Cologne-based mobile communications provider 1NCE, introduced a very low cost, flat rate data plan for smart devices on the Internet of Things priced. Customers pay a ‘lifetime fee” of ten euros in the prepaid tariff and receive a data flat rate of up to 500 megabytes for the service life of each smart device of ten years.

The offer is initially valid within the European Union as well as in Switzerland and Norway.

“With this tariff, we will make it as easy as possible for our customers to quickly implement new IoT solutions. That means no monthly bills, no additional fees, no tariff jungle", says Alexander P. Sator, founder and CEO of 1NCE. “Deutsche Telekom, as a pioneer in NB-IoT, is effectively pushing ahead with the expansion of the network. We hope that this close cooperation will accelerate growth in the European IoT market.”

“Deutsche Telekom's own service-based NB-IoT offering is optimally complemented by 1NCE's simple, disruptive business model. Together, we are addressing a larger market and creating the best customer experience," says Hagen Rickmann, Managing Director Business Customers at Deutsche Telekom.

Marvell intros 16-Port 50GbE PHY transceiver

Marvell introduced new transceiver to address the transition in hyperscale data centers from 25GbE (Gigabit Ethernet) and 100GbE to 50GbE, 200GbE and 400GbE.

The new device, which is part of Marvell's Alaska C family of transceivers, addresses this I/O speed transition in hyperscale data centers with support of 16 ports of 50GbE, 4 ports of 200GbE and 2 ports of 400GbE, utilizing 50G PAM4 signaling.

Marvell said its transceivers are the first PHY devices on the market to be fully compliant with new IEEE 802.3cd standards that define PAM4-based 50GbE port types. The port density on the 88X7120 has been specifically optimized to enable QSFP-DD (Quad Small Form Factor Pluggable – Double Density) and OSFP (Octal Small Form Factor Pluggable) port types for 50GbE, 200GbE and 400GbE deployments.

The devices also provide gearboxing functionality for translating between PAM4 and NRZ port types to enable a smooth transition to the newer Ethernet speeds, while maintaining support for existing optics and ASIC I/Os. They have a fully symmetric architecture, with long reach SerDes on both system and line side interfaces, to enable system design flexibility and to support both optical and direct-attach copper interconnects. The 88X7120 is sampling to key customers today.

 “Increasing the throughput rate to 50Gb per lane is critical to meeting the rapidly growing bandwidth requirements in today’s hyperscale data center environments. Our next generation PHY transceivers provide the highest performance solution in the industry and will be essential to helping customers meet the ever expanding bandwidth needs of their next-generation networks,” stated Chris Koopmans, executive vice president, Networking & Connectivity, Marvell.

IDC: Enterprise WLAN market grows, consumer market declines

The enterprise wireless local area network (WLAN) market continues to see steady growth while consumer sales are softer, according to the most recent International Data Corporation (IDC) Worldwide Quarterly Wireless LAN Tracker.

Enterprise WLAN growth for the full year 2017 was 5.7% with $5.7 billion in revenues. For Q4 2017, revenues grew 6.5% to $1.5 billion.

Consumer WLAN revenue for the full year 2017 decreased 7.3% compared to 2016 to reach $3.65 billion. For Q4, decreased 9.8% on a year-over-year basis in 4Q17, finishing at $916 million. In 4Q17, the 802.11ac standard accounted for 40% of shipments and 69% of revenue in the consumer category. IDC said the slower adoption of 802.11ac in the consumer segment along with price erosion in the 802.11n standard are contributing factors to declining revenues in the consumer-grade WLAN segment.

"Growth in the enterprise segment of the WLAN market continues, albeit at a steadier pace, while the consumer segment is seeing some challenging times," said Brandon Butler, senior research analyst, Network Infrastructure at IDC. "Organizations continue to realize the benefits and new business opportunities that can be realized by updating and improving their WLAN networks, which is providing opportunities for vendors and network solution providers around the globe."

IDC provided the following updates on key enterprise WLAN companies:


  • Cisco's worldwide enterprise WLAN revenues decreased 2.9% sequentially from the third to fourth quarters of 2017, but they were positive on a year-over-year basis, up 5.1% to $646.8 million. For the full year, revenues were up 4.8% in 2017 to $2.49 billion. Cisco saw positive momentum in its cloud-managed networking platform Meraki. The company remains the comfortable market share leader, finishing the year with 43.6% share, compared to 44.0% share in 2016.
  • HPE-Aruba (excluding its OEM business and excluding H3C as of 2Q16) saw its revenue decrease 5.3% quarter over quarter in 4Q17 to $193 million. That represents a 1.2% increase from the same quarter in 2016. For the full year, revenues were up 8.8% to $852 million, giving the company 14.9% market share.
  • ARRIS/Ruckus, despite being bought by Brocade in 2016 and then subsequently sold to ARRIS in 2017 – a deal that closed in December, the company remains the number three company in terms of market share and continues to be a significant player in the market. Revenues were up 3.0% sequentially in the fourth quarter to $90.5 million, and up 24.4% compared to 4Q16. For the year, revenues fell 5.3% to $334 million, giving the company 5.9% market share.
  • Ubiquiti recorded strong growth, with revenues increasing 7.3% sequentially and 16.8% year over year to $85.1 million. For the full year, revenues rose 30.9% to $318 million, representing 5.6% market share.
  • Huawei once again had a strong quarter with revenues in the fourth quarter of 2017 rising 28.6% from the third quarter and up 9.5% from the quarter a year earlier to $96 million. For the full year, revenues rose 45.0% in 2017 to $283 million, giving the company 5.0% market share to end 2017.



IDC: Modest growth for Ethernet switch and router market

The worldwide Ethernet switch market (Layer 2/3) recorded $6.9 billion in revenue in the fourth quarter of 2017 (4Q17), an increase of 3.2% year over year, according to IDC's newly updated Worldwide Quarterly Ethernet Switch Tracker and Worldwide Quarterly Router Tracker, and reached more than $25.7 billion in revenue for the full year 2017, an increase of 5.4% over 2016.

IDC calculates that the worldwide total enterprise and service provider (SP) router market recorded just under $4.0 billion in revenue in 4Q17, increasing 2.4% on a year-over-year basis. For the full year 2017, the router market finished at $15.2 billion, an increase of 4.0% over 2016.

"The Ethernet switch market continues to exhibit healthy growth, driven by network refreshes and investments in the fast-growing campus and datacenter segments. In the combined service provider and enterprise router market, vendor dynamics are beginning to shift as end users look to capitalize on higher-speed cloud connectivity," said Petr Jirovsky, research manager, Worldwide Networking Trackers.

IDC notes that 100Gb Ethernet switch revenue continues to grow rapidly as adoption by hyperscale cloud providers and large enterprises accelerates.

Some highlights:

  • 100Gb shipments reached more than 1.3 million ports and $661 million in revenue in 4Q17. 
  • 100Gb now accounts for 9.6% of total market revenue, up from just 4.8% in the same quarter a year ago. 
  • 25Gb/50Gb Ethernet switch products continue to gain traction. Shipments exceeded 1 million ports with $124 million in revenue in 4Q17. 
  • Growth in 25Gb, 50Gb, 100Gb continue to negatively impact the 40Gb segment. 40Gb port shipments decreased 6.9% year over year and revenue was down 11.2% for all of 2017. 
  • The 10Gb market continues to see healthy growth but pricing pressure is holding back revenue increases. 
  • 10Gb shipments in 4Q17 grew 37.2% year over year while revenues decreased 2.7%. Meanwhile, 1Gb remains the primary connectivity technology for enterprise campus and branch deployments, driving 1Gb port shipments to 112.6 million in 4Q17, growing 5.4% year over year with market share remaining steady at 66.7% of all ports shipped. 


NeoPhotonics intros 53 GBaud Linear Optical Components

NeoPhotonics announced its 53 GBaud Linear Optical Component family, which includes  PAM4 capable optical components for 100G and 400G cloud data center and other client applications, including drivers and EML lasers in transmitters plus PIN photodetectors and TIAs in receivers.

The 53 GBaud Linear Optical Component family from NeoPhotonics includes:

  • 53 GBaud Open Drain Driver (ODD) for linear operation of EML lasers. With a typical 90mW of power consumption per channel and small size, this high speed driver is well suited for space and power efficiency in small form factor pluggable modules.
  • 53 GBaud MZM drivers for Silicon Photonics modulators. This quad driver has a high 3.5Vppd output per channel and a typical 2.2W low power consumption for all four channels designed for small form factor pluggable modules.
  • 53 GBaud CWDM4 EML, which includes the option for integration with NeoPhotonics’ open drain driver. Over the operating temperature range from 20 to 70C, this EML is a preferred transmitter solution for PAM4 for intra-datacenter applications.
  • 53 GBaud PIN photodetectors. The side illumination structure of the PIN PD enables a simple coplanar assembly with mux/demux chip and TIA well suited for compact modules.
  • 53 GBaud Transimpedance Amplifier (TIA). With low noise and a typical power consumption of 60mA over a 3.3V rail, this TIA is well suited for receiver signal amplification for up to 10km transmission. 

“Our complete 53 GBaud Linear Optical Component family, with a typical bandwidth of 35 GHz for all these optical components, provides all needed optical components for single lambda 100Gbps transmitters and receivers, scalable to 400 Gbps transceivers with CWDM4 wavelengths.” said Tim Jenks, Chairman and CEO of NeoPhotonics.  “NeoPhotonics is pleased to now also support the cloud data centers and the industry with a solid and growing portfolio of cost effective optical components based on NeoPhotonics’ high speed platforms of GaAs driver, InP EML/PIN PD, and SiGe TIA,” continued Mr. Jenks.

Qualcomm postpones shareholder meeting

Qualcomm will postpone its shareholders' annual meeting from 06-March-2018 until 05-April-2018.

Reportedly, Qualcomm secretly filed a voluntary request with the Committee on Foreign Investment in the U.S. (CFIUS) asking for a preemptive investigation of Broadcom's proposed merger. This request has now resulted in an order to postpone the shareholder meeting which could have resulted in a new board of directors.

Broadcom described the postponement as "a blatant, desperate act by Qualcomm to entrench its incumbent board of directors and prevent its own stockholders from voting for Broadcom's independent director nominees."

NTT Docomo invests in Otonomo for car data sharing

NTT DOCOMO Ventures has made an equity investment in Otonomo Technologies Ltd., a start-up based in Herzeliya, Israel, that is developing a marketplace for connected car data. Financial terms were not disclosed.

Otonomo offers a centralized platform through which car-generated data parameters are packaged into data bundles and offered to service providers to create innovative new applications and services.

The Otonomo platform addresses functionality such as accounting, billing, security, market management, privacy protection, regulatory compliance, data anonymization and normalization, API linkage and more. The company says it is engaged with dozens of auto manufacturers and Telematics Service Providers, and has an ecosystem comprising many dozens of partners.

Oak Thorne takes the helm at Gogo

Oakleigh Thorne has been appointed President and Chief Executive Officer, effective immediately, replacing Michael J. Small, who has stepped down as President and Chief Executive Officer, and as a director of the company. Gogo said the decision for Small to leave the company was "mutual".

Mr. Thorne, a director of the company since 2003, has approximately 30 years of leadership experience with significant operational and financial expertise. He currently serves as Chief Executive Officer of Thorndale Farm LLC, the family office of the Thorne family, which is the largest Gogo shareholder, owning approximately 30 percent of the ompany's outstanding common stock. Mr. Thorne has served in numerous senior management positions, including as Chief Executive Officer of two public companies.

Coriant appoints Sandra Krief as Managing Director for N America

Coriant appointed Sandra Krief as Managing Director for North America, responsible for sales operations, business development, channel strategy, and customer support throughout the U.S. and Canada. She will report directly to the company’s Chief Customer Officer and EVP of Global Sales and Digital Marketing, Homayoun Razavi.

Previously, Krief served as Global VP at BroadSoft, a Cisco company, where she oversaw the company’s largest global customers including Verizon, AT&T and Sprint.

Eutelsat faces pressure in its traditional video business, seeks new opportunities

Eutelsat, originally known as the European Telecommunications Satellite Organization, is known for being the first satellite operator in Europe to broadcast television channels direct-to-home beginning in the 1980s with its first generation of Hot Bird satellites.

The company was founded in 1977, has its headquarters in Paris, and now operates ground stations in every region of the world.  Its business interests have diversified to include cable distribution, video conferencing services, IP backbone connectivity such as corporate VPNs, and mobile connectivity services. With approximately 40 operational satellites in orbit, Eutelsat’s reach now covers most of the world’s population. It’s major revenue markets are Europe, the Middle East, and Africa.

While Eutelsat has enjoyed decades of growth and stability thanks to its cash cow of delivering television services in western Europe, questions have continued to count with the rising number of cord-cutting households who are adopting over-the-top (OTT) services. As discussed below, Eutelsat's primary revenue category is flat to declining. Moreover, the company is late to offer 4K video services that might appeal to the growing number of consumers who are now buying these screens in volume.

Despite these headwinds, Eutelsat has numerous opportunities ahead, especially in segments such as in-flight connectivity, which can only really be serviced by satellite on transcontinental routes. The mobile sector may also bring opportunities, especially as C-band satellite spectrum may overlap with 5G networks, bringing opportunities for operators to collaborate.


31-Dec-2017
30-June-2016
31-Dec-2016
Operational transponders

1416
1372
1326
Leased transponders

949
931
940
Fill rate
67%
67.9%
70.9%

 The current financial report - first half 2017-2018





 



6 months to Dec 2016

6 months to Dec 2017

Change vs. reported revenues

Like-for-like change
In € millions
Video Applications

455.4

449.2

-1.40%

-1.20%
Fixed Data

84.9

73.4

-13.50%

-10.60%
Government Services

86.1

80.7

-6.30%

-0.10%
Fixed Broadband

48.6

44.1

-9.30%

-8.10%
Mobile Connectivity

38.5

37.1

-3.60%

20.60%
Other revenues6

41.6

12.2

-70.70%

-70.20%
Total

755.1

696.6

-7.70%

-5.70%



Video remains the Eutelsat’s main source of revenue, accounting for 66% of sales. However, video revenues in the first half were down 1.2% like-for-like to €449.2 million. Broadcast revenues were up 0.3% excluding the carry-forward impact of the termination of the TV d’Orange contract last year, with growth coming predominantly from MENA.

Professional Video revenues, which include corporate video conferencing services,  continued to experience a mid-single digit decline. With the exception of maritime communications and remote field work for the oil and industries, or other such esoteric sectors, most enterprises now find an abundance of fibre-fed IP communications alternatives.

Currently, the Eutelsat fleet of satellites are carrying 6,810 TV channels, of which 1,275 channels are HD – a penetration rate of only 19%, which seems low in this era when 4K television screens are now widely available in many markets at declining prices. This implies that 1080 TV screens are already present in many the consumer homes ultimately served by Eutelsat’s partners, and yet 80% of content delivered is not yet at that resolution and while the consumer movement to 4K is well underway.

A year earlier, the HD penetration rate was about 16%, which is concerning given the pace at which the market has been evolving.

For comparison, rival Intelsat currently distributes over 5,400 video channels, including approximately 1,100 high definition channels – a penetration rate of 20%, as of 30-September-2017. Intelsat’s system utilisation rate currently is about 78% of total capacity., not including its next-gen EpiCNG platform.

On the commercial front, Eutelsat has recently announced contracts with Cyfrowy Polsat, Globecast, and SFR-Altice.  New DTH contracts were also signed in several emerging broadcast markets, including Fiji and the Caribbean.

Still, the video business is relatively flat to declining. This could be due to the limited HD penetration rate, as previously noted, or simply the growing availability of fibre to all corners of the continents, as well as the more populated islands. Of course, it takes years to plan, build, launch and commission a satellite, and even longer to sign broadcast partners to make it an economically viable business. Many of Eutelsat coverage zones in EMEA are rural locations that would not be considered tier-one global cities but whose population makes for a huge global audience.

There still are growth opportunities for satellite video distribution, even at standard definition or 1080 high definition. Recently, Elettronica Industriale, a subsidiary of the Italian group Mediaset, signed a multi-year capacity agreement with Eutelsat to transition to HD. The three flagship channels of the Mediaset Group (Canale 5, Italia 1 and Rete 4) will be broadcast simultaneously in SD and HD. This is progress, but cord cutters with 4K screens will know that they can get better quality through OTT services., such as Netflix Italia.

Fixed Data, which accounts for 11% of all revenues, is also declining. In the first half, Fixed Data revenues stood at €73.4 million, down 10.6% like-for-like. Second quarter revenues stood at €36.3 million, down 9.4% on a year-on-year basis, and by 2.9% quarter-on-quarter.

Eutelsat says its data delivery business continues to face ongoing pricing pressure in all geographies.
Wherever fiber reaches, satellite will be at a disadvantage. There is really no way to combat this, and so Eutelsat will continue to see declines wherever new fibre arrives.

Government Services, which constitute 12% of all revenues, €80.7 million for the first half. The performance is stable like-for-like, as most government contracts generally are.  Eutelsat reports solid levels of renewals with the US Department of Defence in the last 12 months. The company has also recently reported activity with the Colombian Ministry of Defence for capacity on the EUTELSAT 115 West B satellite.

Fixed Broadband, which now represents 6% of revenues, is in decline due to terrestrial and mobile competition. In the first half, Fixed Broadband revenues stood at €44.1 million, down 8.1%. However, Eutelsat says revenue trends are expected to improve in the second half now that the retail joint-venture with ViaSat is up and running. The first offers have been launched in Norway and Poland in December, and in Sweden and Finland in January.

Mobile Connectivity, which represents 5% of revenues, is perhaps the best opportunity going forward. While revenues in the first half only amounted to €37.1 million, they were up 20.6%.

Eutelsat has just signed a multi-year agreement to provide in-flight connectivity for UnicomAirNet (UAN), which was recently formed by China Unicom's broadband network unit and Hangmei, a Chinese Wi-Fi service and content provider for railways and buses, to provide IFC services to Chinese commercial airlines. As of 2019, UnicomAirNet will lease the remaining capacity on the High Throughput payload of EUTELSAT 172B, which is one of the company’s newest satellites having been launched in June 2017 by an Ariane 5 rocket. This satellite offer 11 spot beams, which can deliver dynamic power allocation on high-traffic air routes in the Asia Pacific region.

It should also be noted that Panasonic is previously announced customer to in-flight connectivity delivered by EUTELSAT 172B. With these two contracts in hand, EUTELSAT 172B’s HTS payload is now fully sold.

To be continued





See also