Friday, February 23, 2018

Zayo to divest its Minnesota Local Exchange Carrier

Zayo Group will sell its Scott-Rice Telephone Co. business unit, a Minnesota ILEC (incumbent local exchange carrier), for $42 million to New Ulm Telecom, Inc.

Zayo acquired Scott-Rice Telephone as part of its March 2017 purchase of Electric Lightwave and has since managed it separately within its Allstream business segment. Scott-Rice Telephone serves residential and business customers in areas of Scott and Rice counties southwest of Minneapolis.

“This transaction represents further progress toward the separation of our Allstream business,” said Matt Steinfort, Zayo’s CFO. “It is consistent with Zayo’s strategic focus on communications infrastructure, and our goal of maximizing the value of our non-core assets.”

Orange and KPN test LoRaWAN roaming

Orange and KPN have conducted roaming between their respective nationwide public IoT networks based on the latest LoRa Alliance specifications. The testing included Actility, an IoT connectivity platform supplier.

In October, the LoRa Alliance released the first version of the LoRaWAN Backend Interfaces Specification. This governs how LoRaWAN sensor data are passed between different networks to enable roaming. Based on this specification, Orange and KPN set up a secure roaming interface between their Actility network server platforms, and have successfully tested Orange devices operating on the KPN network in the Netherlands and KPN devices operating on the Orange France network.

Interoperability opens up the possibility of connecting sensors or trackers that move between countries. It also simplifies the implementation of international business applications – by removing the need to both integrate several IoT platforms and contract with multiple LoRaWAN operators – thereby reducing time to market for customers.

“This first successful LoRaWAN compliant roaming communication in the field is a critical milestone to unlock several key segments of the IoT market by removing the barrier of national borders,” says Bertrand Waels, head of Alternative Radio Access at Orange. “Our tests in an open collaboration with KPN in the Netherlands and with the support of Actility show that the specifications published by the LoRa Alliance do work reliably in the field.”

Profile of the telecommunications market in Kenya – part 6

See part 1part 2part 3part 4part 5, part 6\

SECTION 5 National level networks

Kenyan National Optical Fibre Programme

The National Optic Fibre Backbone (NOFBI) is a project aimed at ensuring connectivity in all the 47 counties of Kenya both to ease communication across counties as well as improve government service delivery to the citizens such as the applications for national identity cards, passports and the registration of birth and death certificates.  The project is being implemented in 2 phases: NOFBI Phase 1 which started in 2007 and involved laying 4,300 km of cable and NOFBI Phase 2 which kicked in in 2014 and was designed to add a further 2,100 km of cable. The programme is being driven by the Government of Kenya with funding from the Chinese government, construction by Huawei, operation and maintenance by partially government-owned Telkom Kenya and oversight by the Ministry of ICT.

Other Kenyan optical fibre backbone projects

In mid-September 2015 it was announced that as part of the Eastern Africa Regional Transport, Trade and Development Facilitation Project the World Bank had released KSh 54 billion of funding to support the building over the next 2-3 years of major communication links between Kenya and the South Sudan including mainly  a $500 million superhighway between Lokichar in Turkana County in Kenya ("about 200 miles from the Sudan border )and the South Sudan borderpost of Nedapal  together with a fibre optic link which would cost KSh3.9 billion of which the Kenyan section would cost KSh2.4 billion. About 25% of South Sudan imports come from Kenya.

KENET The Kenyan Educational Network

KENET provides broadband internet services, by connecting member institutions to national and global internet It has PoPs in Nairobi(at the University of Nairobi and the United States International University) as well as Meru, Kisumu, Eldoret, Nakuru and Mombasa. KENET have access to a 10Gb/s Internet connection that is dedicated to education and research. Researchers and educators can transfer larger data sets per day between campuses in support of their research, as well as access grid computing infrastructures and high-performance computers. Students and staff have access to commodity Internet (educational videos, Wikipedia, YouTube, Facebook, coursera, etc) through dedicated commodity connections, supported by peering arrangements and caches for major content providers.

As of September 2017, KENET was providing Internet services to 220 campuses in different parts of Kenya. By September 1, 2017, KENET was generating over 13 Gb/s Internet traffic, about 60% being Google traffic (Google PoP in Mombasa and Google cache) and 6% Akamai traffic. KENET had a national distribution capacity of over 27 Gb/s consisting of leased lines and KENET dark fiber with 83 universities on a 1 Gb/s port to the KENET backbone network. KENET also peers directly with GEANT and London Internet Exchange in London through UbuntuNet Alliance, and is now connected to Africa Connect providing direct connections to African NRENs (e.g., RENU in Uganda, ZAMREN in Zambia and TENET in South Africa).

SECTION 6 - Specific end markets

Money transfer market

In mid July 2017, the Kenyan Wall Street reported that Visa was taking on both MPESA and Pesalink by announcing a partnership with nine Kenyan banks namely Barclays Bank; Cooperative Bank; Ecobank; Family Bank; KCB Bank: NIC Bank; Prime Bank; National Bank of Kenya; and Standard Chartered Bank; to offer free money transfer using Visa’s mVisa system hosted on its Visanet network. The report added that mVisa would now also be accepted at a number of merchant locations across the country through Direct Pay Online and Jambo Pay and noted that the countries in which mVisa was engaged Included live systems in Kenya, India, Rwanda and Egypt with plans to launch in Nigeria, Uganda, Tanzania, Ghana, Indonesia, Kazakhstan, Pakistan and Vietnam underway.

e-commerce and mobile payments market

Kenya’s e-commerce sector is currently dominated by brands such as Jumia, Kilimall, OLX, Pigiame, among others. In November 2017, Safaricom announced that it planned to enter this market with its Masoko(=“markets” in Kiswahili) product which would start with 200 vendors and about 30,000 consumer goods ranging from electronics to food and would provide a platform for merchants to trade goods on social media sites. Independent observers expected Safaricom to face stiff competition from market leader Jumia which four year after its launch now supports 5,000 vendors and about 500,000 products listed on its e-commerce.

SECTION 7 - Major Kenyan communications systems vendors 

Huawei

Huawei appears well embedded in Kenya across a broad range of products and, services including as noted above being responsible for constructing a national fibre network linking all 47 Kenyan counties. With an estimated, 5,000 staff in Africa and operations in 40 countries including R&D groups in Angola, Egypt, Nigeria and South Africa Huawei has adequate economies of scale in the continent where based on its global sales one might expect it to be doing up to $2 billion of business

In August 2010, it was reported by Business Daily Africa that Safaricom had signed a three-year contract with Huawei for the supply of its core network requirements, and roll out of a 4G network at a cost of KSh12 billion ($143 million).

In July 2012, Business Daily Africa reported that Huawei had secured an exclusive tender to build a KSh6 billion national fibre optic infrastructure and e-government projects expected to start in August which would link Nairobi with 36 other towns through a Wide Area Network (WAN).

In November 2016, Safaricom and Huawei announced that they were celebrating 14 years of partnership which had included the modernisation of Safaricom’s network infrastructure for both 2G and 3G as well as key involvement in Safaricom’s Transmission, core network and CBS billing system as well as in the implementation of M-PESA the revolutionary money transfer system owned by Safaricom’s parent company Vodafone.More recently the companies had partnered for the rollout of 4G LTE and the national police surveillance system. In the report, Huawei claimed its mobile phone share in Kenya was around 10% at that time but it was targeting a 20% share using a range of phones. Including ultra low-cost phones selling at KSh5,000 In August 2017, Safaricom and Huawei announced that in order to accelerate the introduction of FTTH in Kenya Safaricom would adopt Huawei's end-to-end (E2E) FTTH solution.

Safaricom's plan is to utilize existing metropolitan area network (MAN) optical cables and preferentially use aerial cables. The architecture also looks to integrated the fixed broadband optical distribution networks (ODNs) with Safaricom's mobile backhaul networks. This enables Safaricom to deploy mini optical line terminals (OLTs) and wireless base stations in the same cabinet, realizing fast deployment and decreasing network construction costs.

In summary, although Kenya is now beset by a very difficult political/tribal conflict, the nation's overall telecommunications market has been improved significantly over the past decade and is positioned to continue forward progress in delivering better digital services to all corners of the land.

Profile of the telecommunications market in Kenya – part 5

See part 1part 2part 3part 4, part 5

Airtel Kenya

Airtel Kenya, the second largest operator in Kenya in terms of subscription numbers with a 15.3% market share, is one African national telecommunications unit of Airtel Africa, a subsidiary of Bharti Airtel the leading operator in India which entered the African market in June 2010 under the firm conviction that due to its size, financial resources, strong concentrated owner management and technical skills , also supported by a 32% holding by SingTel, and with its background in providing very lowcost mobile services in India it would be able to rapidly take a leading and profitable role in pan-African communications. At the time it set itself key three-year targets for sales (to reach $5 billion) and for EBITDA profitability. In the event it failed by a considerable margin to meet those targets. Since then Airtel Africa has continued to suffer financial problems and has been searching ways of restructuring itself so as to be more profitable.This has included selling off assets and exiting certain markets

In 2015, then chief executive Adil El Youssefi said the company would quit Kenya if regulations were not introduced to tame the dominance of market leader, Safaricom.

In the year to December 2016, Airtel Kenya made an after-tax loss of (KSh8.1 billion), making it one of Airtel’s worst performing markets in Africa.

In August 2017 Airtel Kenya showed current liabilities at KSh55 billion against KSh9.7 billion in current assets as at December 2016, making the company’s local operations technically insolvent. Data from CA indicated that Airtel’s market share shrunk three per cent in the previous quarter, with total subscribers standing at 6.1 million as at June 30, 2017.

In December 2017, based on an article in India’s Economic Times, which had interviewed Bharti founder and CEO Sunnil Mittal, several news-sources reported that Airtel Africa was planning to quit operations in Kenya , Uganda and Rwanda where its operating margins were very low.However the next day the company denied this but said it was open to some form of partnership. In late December 2017, it was reported that Airtel had acquired TIGO Rwanda for 6x projected EBITDA thus positioning itself both as a strong number 2 to MTN in the Rwandan market and also strengthening its overall commercial and financial position in the East African regional market. In October 2017 TIGO Rwanda was reported to have added 68,555 new mobile subscribers raising its total subscriber base to 3.45 million and raising its market share from 36.5% to 40%.

Telkom Kenya

This originally Kenya state-owned incumbent fixed-line Kenyan telco, was privatised in 2007 when it sold a 70% stake in itself to Orange Group (aka France Telecom). Orange managed it rather unsuccessfully for nine years during which it experienced losses and limited growth in the number of customers and revenue and also had frequent disputes with the National Treasury over the management of the operator. In mid-2016 Helios Investment Partners, a London-based private equity firm acquired the 70% share in the company and in  June 2017 the company rebranded itself, dropping the Orange brand and adopting Telkom as its new trading name. It also shed the old Orange corporate colour in favour of blue and yellow colours. At the same time, Helios ceded a 10% stake to the National Treasury, retaining a 60% shareholding while the Government saw its shareholding go back up from 30 to 40%

Jamii Telecom

In January 2012, broadband ISP Jamii Telecom announced a $3 million upgrade of its fibre network in anticipation of being able to bid for imminent government RFTs to supply broadband services in remote rural areas

In early December 2017 Jamii Telecom became the fifth mobile operator in Kenya and launched its “Faiba” 4G Mobile service and also became the first telco in Kenya to offer VoLTE. Voice calls are free and following  investment estimated in the range of $25 -$50 million in its network Jamii will offer HD voice and video

Wananchi Telecom Ltd

Wananchi Telecom was incorporated in March 2005 as part of Wananchi Group  Holdings which also included SimbaNet, iSat and Zuku. SimbaNet is a licenced public data operator; iSAT is a satellite teleport service provider and Zuku is an ISP and payTV provider. Wananchi Telecom is a tier one Kenyan data communications carrier . also a recognized international carrier, with operations in over 5 countries in the East African region and a presence in over 30 countries though own networks and partner integrated ecosystem. Wholesale services available include IPLC, MPLS L2/L3, DIA, Global IP transit, African and GGC peering and Colocation with access to a dedicated 247 NOC in Nairobi. In mid-May 2017 it was reported that with the aim of concentrating their resources on Zuku their residential telecoms business Wananchi Group had reached an agreement to sell the corporate internet and data unit Wananchi Business Services which included  SimbaNET, Wananchi Telecom and iSAT to Synergy Communications which is owned by African private equity fund Convergence Partners Communications Infrastructure Fund. However minority shareholders in a private equity firm, Africa Telecommunication and Media Technology Fund I (ATMT Fund I), that has a stake in Wananchi are currently litigating to prevent that happening,

MTN

MTN of Johannesburg, South Africa, is Africa’s largest pan-continental teico with annual sales of around $15 billion and mobile and/or fixed operations in around 23 countries which collectively serve almost 250 million subscribers. Most of these are in Africa but the company also has operations in Afghanistan, Cyprus, Iran, Syria and Yemen. MTN attempted to enter the Kenyan market directly in 2008 but had some difficulty in doing so and consequently acquired UUnet, a local cable TV operator. MTN followed this up in mid 2014 by acquiring a 33.3% share of pan-African internet group AIG(Africa Internet Group) which was a joint venture between Rocket Internet and Millicom International Cellular, founded in 2012 and had a presence in over 13 countries on the continent, including South Africa, Nigeria, Egypt, Morocco, Cote d’Ivoire and Ghana. Other investors in AIG ,which had a valuation of around $1 billion, have included AXA, Goldman Sachs and Orange. At that time AIG operated several separate e-commerce ventures including Zando(South African fashion company), Carmudi(online car sales) as well as Jumia, Kaymu, Jovago(travel), Lamudi(real-estate), Easytaxi and Hellofood all of which have operations in Kenya.

At the end of March 2017, MTN announced that it had opened a KSH 1.33 billion Kenyan  ($12.9 million),40 rack by 72 servers, data centre in Nairobi, Kenya, designed to offer a cloud service to SMEs mainly by reselling Microsoft’s cloud service Azure.

Liquid Telecom Kenya

Liquid Telecom Kenya is part of the pan-African Liquid Telecom Group which is itself part of the large Econet Group global conglomerate founded in 1993 by secretive Zimbabwean Christian billionaire and philanthropist Strive Masiyiwa, which is mainly focused on  global telecommunications but which also has investments in financial services, insurance, e-commerce, renewable energy, education, Coca-Cola bottling, hospitality and payment gateway solutions. Econet also has a Pay television outfit, Kwesé TV, which is already competing favorably across Africa with Naspers’ DSTV. Shares of the company have surged in value over the past year. In July 2017 Liquid Telecom successfully raised $700 million in a bond and term loan financing package from international financiers.

The Zimbabwe-listed  Econet Group has telecommunications interests in 17 countries and in late November 2017 Bloomberg reported that it was considering launching an IPO on the London Stock Exchange based on a valuation of $8 billion

 Liquid Telecom Group is dedicated to the ambitious aim of “bringing cheap affordable broadband services to the whole of Africa” and already operates in over 12 countries including Botswana, the Democratic Republic of Congo, Kenya, Lesotho, Rwanda, Uganda South Africa and Zambia, Zimbabwe and the UK via  50,000kms of cross-border, metro and access fibre networks together with a terrestrial satellite system designed to serve rural and remote areas

In late January 2013 Liquid Telecom acquired Kenya Data Networks from Altech from the Johannesburg Stock Exchange-listed Altech Group in a deal that would according to the company, make it the largest terrestrial fibre operator on the continent. Altech would get an 8.6% stake in Liquid Telecom and 10% shareholder voting rights. In addition to the assets, Altech would however also subscribe a further US $16.5 million for the stake.
In mid-December 2015 Liquid Telecom CEO Nic Rudnick announced that his company had issued a RFT(Request For Tender) to interested submarine cable builders for the construction over the next two years of a new “fully funded”, 10,000 km, 20-30Tbit/s capacity. fibre cable along the east coast of Africa which it had named Liquid Sea and which it said would link South Africa to the Middle East and thus to Europe and which would link to Liquid Telecom’s existing terrestrial network in Eastern, Southern and Central Africa and which would “include landing stations in several ports that are currently not served by existing subsea cables”

In late January 2016, Liquid Telecom announced that it had extended its Kenyan fibre services to  Garissa, the 120,000,mostly ethnic Somali inhabitants, capital town of Garissa County via a KSh60 million fibre network spanning over 21km which will be used to provide high-speed internet for Garissa County’s public, commercial and residential buildings.

In mid-August 2016 it was announced that in cooperation with Kisumu County government, Liquid Telecom Kenya was laying a KSh54 million,12.4km, metro fibre optic network in Kenya’s third largest city, Kisumu, located on Lake Victoria and with over one million residents, that was expected to boost Internet speeds in the lakeside city ten-fold and cover Kisumu central business district, Milimani and Kondele up to Kibos, Kicomi and Migosi junction. The new network was designed to integrate multiple local ICT systems including county information systems, schools, libraries, transport, hospitals, power plants, water supply networks and waste management.

In May 2017, it was reported that, after the expiration of a three year contract, former Airtel Kenya MD, Moroccan-born Adil Youssefi, had been appointed the new CEO of Liquid Telkom Kenya, replacing Ben Roberts, who would become board chairman of Liquid Telecom Kenya.

In early September 2017 Liquid Telecom announced that it was upgrading to 100G DWDM technology its East Africa Fibre Ring ,a fully redundant regional system with multiple routing options which was completed in 2014, and links together Kenya, Uganda, Rwanda and Tanzania, with onwards connectivity to Liquid Telecom’s fibre networks in Burundi and eastern DRC. It also offers direct access to international subsea cables. The upgrade enabled 100G links to the cities of Kigali in Rwanda, Kampala and Tororo in Uganda, and Nairobi and Mombasa in Kenya, with further 100G upgrades planned for the East Africa Fibre Ring in the near future.

In mid-October 2017, Ben Roberts MD of Liquid Telecom Kenya announced the signing of a Ksh 600 million, 40%/60%, 10 year agreement with Ketraco(Kenya Electricity Transmission Company), the country’s power transmission company that would enable Liquid Telecom to use Ketraco’s wire lines to extend fibre optic cables to counties such as Garissa, Isiolo, Garsen, Lamu, Rabai, Namanga, and Meru. As of 2015 Ketraco had 4,149km of transmission lines in operation, plus 4,489km planned or in construction and a further 4,207km expected to be installed over the longer term.

In early November 2017, Liquid Telecom announced that it would become a Microsoft Azure ExpressRoute partner across Africa when the Microsoft Azure cloud platform became generally available in 2018. Liquid Telecom CEO Nik Rudnick said his company would be adding CloudConnect nodes to over 25 PoPs across Africa, and also making major upgrades to Liquid Telecom data centres in Johannesburg and Cape Town thus enabling it to offer direct private connections to Microsoft’s South African ExpressRoute locations to businesses of all sizes in Africa

MVNOs

The leading Kenyan MVNO by far is FinServe Africa Limited’s Equitel which uses the Airtel Kenya network and serves over 1.7 million subscribers. Equitel which operates the Pesabank interbank money transfer system is now the second largest handler of mobile cash in Kenya after Safaricom. Two other MVNOs Sema Mobile and Mobile Pay also use the Airtel Kenya but neither has been very successful so far. Two other companies Lycamobile Kenya and Homeland Media Group have CAK licenses and are expected to enter the market soon.

Thursday, February 22, 2018

NeoPhotonics ships 64 GBaud Coherent for 600G and 1.2T

NeoPhotonics announced the commercial shipment of its suite of 64 GBaud optical components for coherent systems operating at 600G and 1.2T.   The suite consists of three critical optical components:  a 64 GBaud CDM (Coherent Driver Modulator), plus a 64 GBaud ICR (Coherent Intradyne Receiver) and finally an ultra-narrow linewidth tunable laser.

NeoPhotonics said these components could be used for single channel 600G or dual channel 1.2T data transmission over data center interconnect (DCI) distances of 80 km. The components also support 400G over metro distances of 400-600 km using 64 GBaud and 16 QAM or 200G over long-haul distances of greater than 1000 km using 64 GBaud and QPSK.

“All three elements of our suite of optical components for 600G and 1.2T are now available and shipping to customers, allowing them to take advantage of the performance of all three elements to optimize their system performance,” said Tim Jenks, Chairman and CEO of NeoPhotonics.  “We ensure that each element is designed to work seamlessly with the others and offer our customers a complete optical solution, both increasing performance and reducing development time.”

Product highlights:

  • 64 GBaud CDM: NeoPhotonics 64 GBaud, polarization multiplexed, quadrature coherent driver modulator (CDM) is shipping in limited availability and features a co-packaged InP modulator with a linear, high bandwidth, differential driver in a compact package designed to be compliant with the anticipated OIF Implementation Agreement. Co-packaging the InP IQ modulator with the driver enables an 85% reduction in line card board space compared to equivalent lithium niobate solutions. Furthermore, this facilitates transceiver applications up to 600 GBps on a single wavelength for next-generation transport modules..
  • 64 GBaud Micro-ICR: NeoPhotonics Class 40 High Bandwidth Micro-Intradyne Coherent Receiver (Micro-ICR) is in volume production and is designed for 64 GBaud symbol rates, doubling the RF bandwidth of standard 100G ICRs. The 64 GBaud Micro-ICR supports higher order modulation such as 64 QAM. The compact package is designed to be compliant with the OIF Implementation Agreement OIF-DPC-MRX-02.0.
  • Low Profile Micro-TL: NeoPhotonics ultra-narrow linewidth external cavity tunable laser has been proven in volume production and is now configured in a smaller, lower profile package, which is designed to meet the stringent requirements for packaging density in pluggable modules. The external cavity laser design has a significantly narrower linewidth than competing designs, which is especially advantageous for higher order modulation formats. The laser is available in a compact package Integrable Tunable Laser Assembly form factor designed to be compliant with the OIF Implementation Agreements OIF-MicroITLA-01.1 and OIF-ITLA-MSA-01.3.

CenturyLink vaults to top of U.S. Ethernet LEADERBOARD

CenturyLink has captured the #1 spot on Vertical Systems Group's latest LEADERBOARD of U.S. Ethernet market leaders. It is the first time a provider other than AT&T has led the benchmark ranking since 2005.

Seven companies achieved LEADERBOARD status for 2017 (in rank order based on retail port share): CenturyLink, AT&T, Verizon, Spectrum Enterprise, Comcast, Windstream and Cox.

CenturyLink’s advance was driven by its November merger with Level 3, along with continued growth in Ethernet ports for both companies. Previously, Level 3 ranked second to AT&T and CenturyLink ranked fifth on the Mid-2017 U.S. Ethernet LEADERBOARD.

To qualify for the LEADERBOARD, network providers must have four percent (4%) or more of the U.S. Ethernet services market. Shares are measured by the number of billable retail customer ports in service as tracked by Vertical Systems Group.

“In addition to the shakeup at the top of the LEADERBOARD, U.S. Ethernet installations exceeded the milestone of one million ports in 2017,” said Rick Malone, principal of Vertical Systems Group. “Overall, the fastest growing Ethernet deployments were driven by higher speed cloud connectivity and IP VPN access. Service providers cite price compression as a continuing challenge, as well as delayed network purchase decisions due to SD-WAN evaluations.”

Highlights of Vertical’s year-end 2017 U.S. Ethernet market share analysis:

  • The U.S. retail Ethernet port base grew 13% in 2017 and finished the year with more than one million ports.
  • Seven Ethernet providers qualified for the 2017 LEADERBOARD, as compared to nine in 2016. The two company exits were XO (acquired by Verizon) and Level 3 (merged with CenturyLink). As a result, the U.S. LEADERBOARD has no companies from the Competitive Provider segment for the first time.
  • Four Incumbent Carriers (CenturyLink, AT&T, Verizon, Windstream) and three Cable MSOs (Spectrum Enterprise, Comcast, Cox) are represented on the latest LEADERBOARD.
  • Comcast had the highest organic growth rate of the LEADERBOARD companies in 2017, growing its base of Ethernet ports appreciably without an acquisition.
  • Six Ethernet providers qualified for the 2017 Challenge Tier, as compared to four in 2016. New entrants Frontier and GTT moved up into the Challenge Tier from the Market Player tier based in part on acquisitions of Ethernet assets. These companies join Altice USA, Cogent, Sprint and Zayo.
  • Each of the seven LEADERBOARD companies has attained MEF CE 2.0 Ethernet services certification, and each employs MEF Carrier Ethernet Certified Professionals (MEF-CECPs). Spectrum Enterprise leads with more than 800 MEF-CECPs, followed by CenturyLink with greater than 500. Companies on the U.S. Ethernet LEADERBOARD plus Challenge Tier employ more than one-third of the 5,500+ MEF-CECPs worldwide.

In addition to the roster of LEADERBOARD providers, all other companies selling Ethernet services in the U.S. are segmented into two tiers as measured by port share. The first or Challenge Tier includes providers with between 1% and 4% share of the U.S. retail Ethernet market. For year-end 2017, the following six companies attained a position in the Challenge Tier (in alphabetical order): Altice USA, Cogent, Frontier, GTT, Sprint and Zayo.

The second or Market Player tier includes all providers with port share below 1%. Companies in the Market Player tier include the following providers (in alphabetical order): Alaska Communications, Alpheus Communications, American Telesis, Birch Communications, BT Global Services, Cincinnati Bell, Consolidated Communications, Crowne Castle, DQE Communications, Expedient, FiberLight, FirstLight, Global Cloud Xchange, Great Plains Communications, Hawaiian Telecom, Logix Fiber Networks, LS Networks, Lumos Networks, Masergy, MegaPath, Midco, NTT America, Orange Business, RCN Business, Tata, TDS Telecom, Telstra, TPx Communications, Unite Private Networks, US Signal, WOW!Business and other companies selling retail Ethernet services in the U.S. market.

https://www.verticalsystems.com

AT&T expands its SD-WAN offer to 150 countries

AT&T is expanding its SD-WAN –offer to more than 150 countries and territories.

The AT&T SD-WAN – Network Based service was first launched in the U.S. in 2017.

The service enables businesses to mix and match site types and connect AT&T VPN sites, internet protocol security sites and SD-WAN sites in a single VPN, while preserving MPLS features. It may also be integrated with AT&T NetBond for Cloud.

“Managing connectivity should be simple. We know businesses want to customize their networks as their needs evolve and technology changes. Our AT&T SD-WAN – Network Based solution delivers flexibility and scalability to help businesses optimize and align network performance, functions and costs,” said Roman Pacewicz, chief product officer, AT&T Business. “We can bring everything together edge-to-edge – from end points, to connectivity, to the cloud – wrapped in security.”

MEF17: 2018 is about creating intelligence at the edge


2017 was all about virtualizing the edge and 2018 will be about creating intelligence at the edge and expanding it to the cloud, says Josh Goodell, VP, Intelligent Edge, AT&T. Application-aware #SD-WAN capabilities will make the extensible platform real. See video:  https://youtu.be/LrY_Vd8mfTQ ...

NEC test 5G Massive MIMO coordination with NTT DOCOMO

NEC announcedd a series of 5G verification experiments that it has conducted with NTT DOCOMO.

The testing involves coordinated control between Distribution Units (DUs) using a massive-element Active Antenna System (AAS) base station system belonging to a Centralized-Radio Access Network
(C-RAN) configuration. A Central Unit (CU) is used to control multiple DUs.

NEC said its super high-frequency band, massive-element AAS base station system can improve the throughput of terminals located near the boundary of DUs' communication ranges (cells) that levering its advanced coordination capabilities.

"NEC is committed to contributing to the successful roll-out of 5G in the near future, including these verification trials using the massive-element AAS base station system," said Kenichi Ito, Deputy General Manager, Wireless Network Development Division, NEC Corporation. "Moving forward, we aim to continue driving the advancement of high-speed, large capacity communications and sophisticated service functions that contribute to services provided by telecommunications carriers."

Swisscom to rollout 5G at the end of 2018

Swisscom is accelerating its timetable for 5G by two years. The company says it now plans to roll out 5G at the end of 2018.

Swisscom confirmed that Ericsson, its network equipment supplier, will deliver the first 5G hardware and software and implement it in the Swisscom mobile network this year.

Switzerland’s first 5G mast will be tested in Ittigen. However, development of an extensive and fully efficient 5G network is dependent on a moderate amendment of regulatory parameters.

In the summer of 2016, Swisscom, Ericsson and EPFL (École polytechnique fédérale de Lausanne) launched the "5G for Switzerland" programme to jointly conduct research on the new mobile communication standard. Swisscom has reached a host of 5G test milestones since: in the summer of 2017 Swisscom presented 5G applications like network slicing and speeds of 20 Gbit/s. Swisscom’s industrial partner, Ypsomed, uses 5G applications in the Industry 4.0 sector.

Blue Danube demos FDD Massive MIMO in Clustered Multi-Sectors

Blue Danube Systems announced the commercial deployment of its massive MIMO solution to multiple clustered cell sites.

Blue Danube has performed multi-sector beam optimization using its BeamCraft 500 Massive MIMO systems at two different sites within the FDD-LTE network at a US mobile operator. The company said that it has not been clearly proven until now that Massive MIMO is deployable beyond isolated high-demand sectors where effects such as adjacent cell interference must be addressed. Its approach to Massive MIMO starts by assuring RF array coherency which in conjunction with digital processing uniquely enables the definition, placement and dynamic coordination of high precision beams that can be software engineered to minimize adjacent sector interference and actually improve clustered cell performance.

“We are excited to be the first in the industry to successfully demonstrate capacity improvement for clustered multi-sector Massive MIMO deployments,” said Mark Pinto, CEO of Blue Danube Systems. “Adding to our recent announcement of the first multi-band Massive MIMO products, we are making available powerful and flexible tools for operators to seamlessly insert 5G-ready technology into their existing LTE networks for substantial system-wide capacity gain.”

“Cell edge performance continues to be a major challenge for pure digital Massive MIMO systems,” said Shiv Panwar, Professor of Electrical Engineering at NYU and Director of the New York State Center for Advanced Technology in Telecommunications (CATT). “This is the very first demonstration of Massive MIMO performance in a clustered deployment. Blue Danube’s multi-sector BeamCraft results are very exciting and demonstrate that Massive MIMO is now viable for wide-scale adoption in FDD networks.”

SpaceX deploys first two Starlink demo satellites - Tintin A & B

SpaceX successfully launched the Low Earth Orbit (LEO) PAZ observation satellite on behalf of Hisdesat and two satellites of its own.

Hisdesat Servicios Estratégicos S.A. is an international commercial provider of X- and Ka-band satellite communications services for government. The company is based in Madrid, Spain. Its PAZ satellite is designed to capture Earth images with up to 25 cm resolution. For maritime monitoring, PAZ also features a sophisticated Automatic Identification System (AIS), simultaneously combining for the first time ship AIS signals and Synthetic Aperture Radar (SAR) imagery.

Tintin A & B are the first two demonstration satellites for SpaceX's planned Starlink broadband satellite service. Both were successfully deployed into polar orbit and are communicating with Earth stations.

In regulatory filing, SpaceX has revealed that its initial system will consist of 4,425 satellites operating in 83 orbital planes (at altitudes ranging from 1,110 km to 1,325 km).  The system will require associated ground control facilities, gateway earth stations, and end-user earth stations. The system will use Ka- and Ku-Band spectrum.  SpaceX has separately filed for authority to operate in the V-Band, where the company has proposed an additional constellation of 7,500 satellites operating even closer to Earth. To implement the system, SpaceX will utilise the availability of significantly more powerful computing and software capabilities.  On the launch broadcast for the PAZ satellite, SpaceX said quite a bit of development work remains ahead on its satellite constellation plans.

Telefónica and Orange announce wholesale FTTH agreement

Telefónica and Orange announced a new commercial wholesale fiber agreement.

Under the arrangement, Orange will be able to access Telefonica’s FTTH network, representing an extension of the current 2016 agreement.

Telefónica and Orange reaffirmed their mutual commitment to a long-term wholesale relation in areas where Orange is not planning to deploy its own FTTH network. During next years, Orange will ensure wholesale revenues in all Telefonica’s footprint.


Rethinking: Central Office 2.0 - a panel discussion



Telcos are rapidly evolving their central offices to be more agile, efficient and capable of delivering edge services for mobile and broadband users. This video panel discusses Central Office 2.0. Participants include Mike Yang, President of QCT; Dan Rodriguez, VP of Network Platforms Group, Intel; and Bill Snow, Chief Development Officer, ONF.

Where does the telco industry stand today in terms of the deployment of virtualized networks?

In 2018: many changes will impact the network, including IoT and 5G. How are telcos rethinking their networks to take advantage of these opportunities?

What can telcos learn from the hyperscale cloud providers who have been most successful in building the most efficient data centers?

Watch the video panel: https://youtu.be/9_yRWOPDTR4




Profile of the Telecoms market in Kenya - part 4

See part 1part 2part 3part 4part 5part 6\

MARKET SHARES

Mobile subscriber unit market shares

Based on operator returns to the regulator the following were the unit market-shares by operator during the quarter.

                                          Share             COMMENT
Safaricom                          71.9%          up slightly to 29.49mn from 29.23mn
Airtel Kenya                     14.9%         down slightly to 6.10mn from 6.18mn
Telkom Kenya                    8.4%         up significantly to 3.44mn from 2.90mn
MVNO  Finserve/Equitel   4.7%          up moderately to 1.91mn from 1.86mn
Mobile Pay Ltd                   0.2%          up to 0.089mn from 0.088mn
Sema Mobile                    Negl

Mobile money transfers market shares - by money transfer system



Subscribers
in millions
Market Share
Transactions in millions
Value KSh
In billions
M-Pesa
22.79
80.8%
428.77
1334.74
Airtel Money
1.63
5.8%
2.47
1.15
Equitel Money
1.91
6.8%
104.79
322.42
Mobikash
1.77
6.3%
0.82
0.13
Mobile Pay
0.089
0.3%
0.40
1.46
TOTAL
28.19
100.0%
537.24
1659.89


NB There are 184,137 agents involved of which 143,126 support M-Pesa

It is not clear why Airtel Money has such a low value for transactions  There are additional figures on mobile commerce transactions and Airtel seems relatively stronger in that sector though not obviously enough to justify the difference

Fixed/wireless data/internet subscriptions market shares


Q1 2017/8
% Market Share
Wananchi Grp Ltd.
107,640
41.0
Safaricom
40015
15.2
Jamii Telecommunications
34975
13.3
Mawingu Networks
29905
11.4
Argon Telecom services
20553
7.8
Access Kenya Grp
15004
5.7
Liquid Telecoms Kenya
7690
2.9   
Telkom Kenya
3,856
1.5
Iway Africa Kenya
997
0.4
Mob:Tel:  Networks Business Kenya
583
0.2
Other
1,574
0.6
Total subscriptions
262,792
100.0




 NB This covers all non-cellular data internet sectors

SECTION 4 —Short profiles of the main operators

Safaricom

Safaricom was started in 1993 as a department of the former state-owned telecommunications company,Kenya Post and Telecommunications Corporation but is now owned 35% by Vodacom of South Africa(which is owned 65% by Vodafone of the UK), 35% by the Kenyan Treasury, 5% directly by Vodafone of the UK and 25% by the general public.

Safaricom provides a wide range of integrated residential and business telecommunication services, including mobile and fixed voice, SMS, data, Internet and M-PESA, a service to send and receive money or pay for goods and services through a mobile phone.

Due to Safaricom’s dominant share of the Kenyan mobile market, there have been frequent calls for the company to be broken up into separate retail and wholesale companies and for some time the CA was said to be considering whether Safaricom had abused its position and whether its various businesses should be disaggregated. Finally, on January 4th, 2018 the CA announced that it had decided not to take any action on this issue.

Safaricom is Kenya’s most profitable company and claims to support over one million workers directly and indirectly. For the year to March 2017, Safaricom reported revenues of KSh 212 billion.

For the first halfyear of 2017/18 ended September 2017, Safaricom reported good growth boosted by a strong performance by M-Pesa and data while traditional services such as voice remained resilient.

Specifically
1. Total revenues rose 12.1% to KSh114.43 billion(=$1.110 billion)supported by
-M-Pesa revenues up 16.2% to KSh30.05 billion
-Data income up from KSh13.4 billion to KSh17.55 billion.
-Voice revenue, which is still Safaricom’s biggest income stream, up from KSh45.7 billion to KSh47.35 billion.
-Messaging revenue up 3.4% to KSh8.92 billion.

2. PAT grew 9.5% to KSh26.2 billion for the six month

Safaricom is a key contributor to the Kenyan Treasury through its payment of substantial taxes and dividends. In mid-December 2017 the Central Bank of Kenya in its weekly bulletin reported that the company had just paid KSh16.2 billion($157.3 million at KSh.0097 to the dollar) dividend to the Kenyan government.

In early September 2017, Safaricom CEO, Bob Collymore, speaking to the Financial Times of London said the company was planning to market some of its services , notably Masoko, a service which combined e-commerce and mobile payments to four or five of its neighbouring countries, including Ethiopia, though he admitted the latter initiative might not be easy given the limited private sector in that country.

As of late 2017, Safaricom was reported to have provided FTTH services to 81,000 homes in 19 neighbourhoods in Nairobi including South B and Pangani as well as Ngong and Rongai in Kajiado County.

On December 11th 2017, Safaricom announced that for the first time ever, Kenya had achieved the milestone of 1 million active 4G customers in customers. Safaricom is currently the only operator providing LTE commercially. It said the milestone was achieved following network expansion, increased affordability of 4G smartphones and more affordable data bundles.

Wednesday, February 21, 2018

Antin Infrastructure Partners to acquire FirstLight

Antin Infrastructure Partners (Antin) agreed to acquire FirstLight, a leading fiber-optic bandwidth infrastructure services provider operating in the Northeast U.S., from Oak Hill Capital Partners IV. Financial terms of the transaction were not disclosed.
Antin is a leading independent private equity firm focused on infrastructure investments.

FirstLight originally started as an Albany, New York-focused fiber provider and expanded through the acquisitions of segTEL in New Hampshire and Maine; TelJet in Vermont; G4 Communications in New Hampshire; Oxford Networks in Maine and New Hampshire; Sovernet Communications in Vermont and New York; 186 Communications in New Hampshire, Massachusetts, and Vermont; and Finger Lakes Technologies Group in New York and Pennsylvania.

"We have tremendous respect for all that FirstLight has accomplished to date. We are delighted to be backing Kurt Van Wagenen and his talented team to continue the company's growth strategy, leveraging the success that Antin has had with communications and fiber investments in Europe," said Kevin Genieser, Senior Partner at Antin.

"We are thrilled about this exciting development.  Antin is an experienced fiber investor and an ideal partner to support our growth strategy.  With this acquisition, FirstLight remains well positioned to continue providing the highest levels of service and expanded offerings to enterprise and carrier customers," said Kurt Van Wagenen, President and Chief Executive Officer of FirstLight.\

Angola Cables interconnects in Florida with Fiberlight

FiberLight will provide backhaul connectivity in the U.S.for Angola Cables. The partners will leverage the recently completed 10,556-km Monet cable linking Florida to Brazil, which is capable of delivering a minimum of 64 Tbps of capacity.

Angola Cables operates two fiber optic pairs within the Monet cable system, one transmitting data from Fortaleza, Brazil to U.S. shores and the other carrying traffic to Sao Paulo, Brazil.

“The link-up with FiberLight will allow Angola Cables to deliver reliable, high graded services beyond the Monet cable termination point of MI3 Equinix and the data center in Boca Raton at Equinix’s MI1 colocation facility in Miami, Florida,” said António Nunes, CEO of Angola Cables

Equinix’s MI1 is also known as the NAP of the Americas (NOTA) and is the key gateway for internet traffic between the U.S. and Brazil.

“As digital transformation continues to bring the world closer together, FiberLight has made it a priority to partner with international data carriers and establish presence within world-class subsea landing stations to ensure global communication and data transport activities benefit from access to reliable, high bandwidth fiber network capabilities,” said Don MacNeil, FiberLight’s CEO.


FiberLight appoints Don MacNeil as CEO, formerly XO


FiberLight, which owns over 1,700,000 miles of robust fiber networks in over 44 U.S. cities, appointed Don MacNeil as its new CEO, replacing Jim Lynch who will now assume the role of Executive Chairman. MacNeil joined FiberLight as Chief Operating Officer (COO) in September. He previously served as Chief Technology Officer (CTO) for EdgeConneX, an innovative data center solutions provider, which built a national portfolio of 29 edge data centers...

MONET subsea cable enters service connecting U.S. and Brazil


The Monet subsea cable system, which links the U.S. and Brazil, is complete and ready for commercial service. The 100Gbps-capable cable system offers an initial 64 Tbps of capacity.  The 10,556km cable has shore landings in Boca Raton, Florida; Fortaleza, Brazil; and Praia Grande, Brazil. Monet is owned by Algar Telecom (Brazil), Angola Cables (Angola), Antel (Uruguay), Google and TE SubCom, a TE Connectivity Ltd. company. Antonio Nunes,...

South Atlantic Cable System is now 75% complete


Construction on the South Atlantic Cable System (SACS), which is a 40 Tbit/s, 6,165 km cable connecting Angola to Brazil, is now 75% complete. It is expected to enter service in mid 2018. SACS offers four fibre pairs, with each fibre pair capable of transmitting 100 wavelengths with a bandwidth of 100 Gbit/s, which will connect from Angola to Brazil. SACS is scheduled to be ready for service in mid-2018. NEC, which is the turn-key contractor for...


Bosch enters ridesharing business

Bosch, which is one of the world's leading suppliers of automotive subsystems, announced its entrance into the ridesharing business and its acquisition of Splitting Fares, a start-up based in Detroit that operates a platform that allows companies, universities, and municipal authorities to offer their workforces ridesharing services. Financial terms were not disclosed.

The SPLT app connects people who share the same route to their place of work or study. The app finds the best composition for the ride-share, and computes the fastest route.

“Increasingly, smartphones are becoming the most important means of travel,” Heyn added. Connecting road users and modes of transportation is making flexible, multimodal mobility possible: in a matter of seconds, everyone can decide how they want to travel, and make the necessary bookings. “With this sustainable and affordable mobility service, we want to fundamentally change the way people get from A to B,” said Anya Babbitt, the co-founder and CEO of SPLT.

Bosch said it is pursuing a range of IoT activities encompassing solutions for connected mobility, connected manufacturing, as well as for connected energy systems and buildings.

Accedian acquires Performance Vision for network and app performance mgt

Accedian has acquired Performance Vision, a company based in Paris that specializes in network and application performance management (NPM/APM). Financial terms were not disclosed.

Accedian said Performance Vision’s exceptional wire data analytics complements its own SkyLIGHT active monitoring platform, bringing visibility of all applications, transactions, and network components together.

The solution delivers actionable insight generated by analyzing all traffic crossing physical, virtual, cloud and SDN infrastructure.

Commenting on the acquisition, Accedian CEO Patrick Ostiguy said, “The combination of Performance Vision and Accedian creates a proposition that is truly unique. There is no other company that is able to offer this level of accuracy and granularity into how the performance of the network and the applications running over it impact the end-user digital experience, in real-time, for enterprises of all sizes.”

“As virtualization and hybrid cloud applications continue to be deployed at an accelerated pace, the interdependence of network and application performance increases significantly,” said Sergio Bea, Vice President of Global Enterprise and Channels at Accedian. “The ability to see the entire digital infrastructure uniformly—from end-user to multiple data centers, clouds, and SaaS applications—fills a visibility gap that otherwise threatens digital transformation projects’ success, speed, return on investment (ROI), and business value.”

Accedian also announced two executive appointments: Sergio Bea joined the company as Vice President of Global Enterprise and Channels, while Richard Piasentin took the role of Chief Marketing Officer and Chief Strategy Officer.