Thursday, October 31, 2019

China Mobile launches 5G in 50 cities

China Mobile officially launched its 5G commercial service in 50 cities across the country.

China Mobile has deployed 40,000 5G base stations in the first batch of 50 key cities.  5G network construction is underway in more than 300 cities across the country.

The carrier is offering a number of 5G subscriptions starting with a Personal Plan priced at RMB 128 per month (~US$18). Family plans and business plans are also available. Downlink speed caps and data caps apply.

China Mobile initially has ten 5G smartphones available, along with 3 hotspot devices.

Cities with 5G coverage include: Beijing, Tianjin, Shanghai, Chongqing, Shijiazhuang, Xiong'an, Taiyuan, Jincheng, Hohhot, Shenyang, Dalian, Changchun, Harbin, Nanjing, Wuxi, Suzhou, Hangzhou , Ningbo, Wenzhou, Jiaxing, Hefei, Wuhu, Fuzhou, Xiamen, Quanzhou, Nanchang, Yingtan, Jinan, Qingdao, Zhengzhou, Nanyang, Wuhan, Changsha, Zhuzhou, Guangzhou, Shenzhen, Foshan, Dongguan, Liuzhou, Nanning, Haikou, Qiong, Hai, Chengdu, Guiyang, Kunming, Xi'an, Lanzhou, Xining, Yinchuan and Urumqi.

China Telecom launches 5G in 50 cities

China Telecom officially switched on commercial 5G service in 50 cities.

In the early stage of commercial use, China Telecom said its 5G network covers the main downtown areas and hotspots of each city. Its network footprint will expand over time.

China Telecom emphasized its focus on the user experience, with its commitment to accelerate the pace of 5G network construction, improve the strategic layout of 5G industry, and enrich 5G applications and content.

China Telecom's lowest cost 5G service tier is priced at RMB 129 (US$18).

China Unicom launches 5G in 50 cities

China Unicom announced commercial activation of 5G services in 50 major cities across the country.

Service tiers begin at RM 129 (~US$18), and data allowances range from 30GB to 300GB per month. More than ten 5G smartphones are offered.

China Telecom and China Unicom reach 5G sharing deal in 15 cities

China Telecom and China Unicom announced a "co-build, co-share" framework agreement aimed at cutting costs and speeding deployment. The sharing is limited to the access network and 5G spectrum resources. Each company will build and operate their own 5G core network.

The agreement, which covers 15 cities, is based on network construction and operation responsibilities in specific geographies. In the northern cities of Beijing, Tianjin, Zhengzhou, Qingdao and Shijiazhuang, the ratio of construction districts handled by China Unicom to China Telecom will be 6:4. In Shanghai and 9 other southern cities (Chongqing, Guangzhou, Shenzhen, Hangzhou, Nanjing, Suzhou, Changsha, Wuhan, and Chengdu), the ratio of construction districts handled by China Unicom to China Telecom will be 4:6.

China Unicom and China Telecom will maintain their separate ownership structures. The company will continue competing under their existing brands.

China Unicom's revenue dips as it prepares for 5G rollout

China Unicom reported service revenue of RMB 132.957 billion for the first half of 2019, down 1.1% from RMB 134,423 million for the same period in 2018. Net profits increased by 16.3% to RMB 6.88 billion. Operating revenue amounted to RMB 144.954 billion, down -2.8% yoy.

Mobile service revenue dipped 6.6% compared to last year, despite the company adding 9.32 million subscribers during the first half of the year.

Industry Internet Revenue for 1H19 amounted to RMB 16.72 billion, up by 43% compared to the first half of 2018.

Regarding its upcoming 5G rollout, China Unicom said it is pursuing a “co-build co-share" strategy to lower CAPEX requirements, tower usage fees, network maintenance expenses & power charges.

AWS to Open Data Centers in Spain

Amazon Web Services (AWS) will open an infrastructure region in Spain in late 2022 or early 2023..

The new AWS Europe (Spain) Region will consist of three Availability Zones at launch, and will be AWS’s seventh region in Europe, joining existing regions in Dublin, Frankfurt, London, Paris, Stockholm, and the upcoming Milan region launching in early 2020.

Currently, AWS provides 69 Availability Zones across 22 infrastructure regions worldwide. With this announcement, AWS now has announced plans for 13 more Availability Zones and four more Regions in Indonesia, Italy, South Africa, and Spain.

“Cloud computing is already powering innovation within businesses, educational institutions, public administrations, and government agencies across Spain, and with this AWS infrastructure region, we look forward to helping accelerate this transformation,” said Peter DeSantis, Vice President of Global Infrastructure and Customer Support, Amazon Web Services. “Opening an AWS Region in Spain will drive more technology jobs and businesses, boosting the local economy, while enabling organizations across all industries to lower costs, increase security, and improve agility. We’re excited to have AWS contribute to the future growth of Spain.”

Arista posts Q3 sales of $654M, up 16%, warns on cloud titans

Arista Networks reported Q3 2019 revenue of $654.4 million, an increase of 7.6% compared to the second quarter of 2019, and an increase of 16.2% from the third quarter of 2018. GAAP gross margin was 63.8%, compared to GAAP gross margin of 64.1% in the second quarter of 2019 and 64.2% in the third quarter of 2018. GAAP net income of $208.9 million, or $2.59 per diluted share, compared to GAAP net income of $168.5 million, or $2.08 per diluted share in the third quarter of 2018. Non-GAAP net income of $217.1 million, or $2.69 per diluted share, compared to non-GAAP net income of $171.3 million, or $2.11 per diluted share in the third quarter of 2018.

“In Q3 2019 we continued to see the adoption of our cloud networking technology in more diverse environments. While we expect a sudden softening in Q4 with a specific cloud titan customer, we are committed to a sustainable and strong foundation of long-term growth, innovation and profitability,” stated Jayshree Ullal, Arista President and CEO.

On a conference call, Arista execs discussed a "sudden softening with a specific cloud titan customer" as well as a longer timeline for the industry adoption on 400G. Q4 revenue is now expected between $540 million and $560 million.

NeoPhotonics posts Q3 sales of $92.4M, up 13%

NeoPhotonics reported Q3 2019 revenue of $92.4 million, up 13% quarter-over-quarter and up 13% year-over-year. Gross margin was 28.4%, up from 19.2% in the prior quarter. Diluted net earnings per share was $0.05, up from a net loss of $0.16 per share in the prior quarter.

“Solid execution, strong customer demand, and cost reduction combined for a profitable quarter for NeoPhotonics,” said Tim Jenks, Chairman and CEO of NeoPhotonics. “Despite the trade tensions, we believe the macro trends of the industry favor our core capabilities of delivering the highest performance products for the most demanding applications,” concluded Mr. Jenks.

Some highlights:

  • Huawei demand for non-Export Administration Requirements (EAR) products holding at 37% of revenue, but down from 46% in 2018.
  • NeoPhotonics said it has applied for certain export licenses for shipping additional products to Huawei, but, to date, no definitive response has been received.

NETSCOUT sales dip to $224M

NETSCOUT reported quarterly revenue (GAAP) of $216.4 million, compared with $223.8 million in the same quarter one year ago. There was a net loss (GAAP) of $17.5 million, or $0.23 per share (diluted) versus net loss (GAAP) of $26.4 million, or $0.34 per share (diluted), for the second quarter of fiscal year 2019. On a non-GAAP basis, net income was $21.4 million, or $0.28 per share (diluted), which compares with $20.0 million, or $0.25 per share (diluted), for the same time last year.

  • Product revenue (GAAP and non-GAAP) was $102.8 million, which was approximately 47% of total revenue. 
  • Service revenue (GAAP) was $113.6 million, or approximately 53% of total revenue versus service revenue (GAAP) of $113.0 million, or approximately 51% of total revenue, for the same period one year ago. 

"We delivered solid second-quarter results with both non-GAAP revenue and earnings per share performance exceeding the high-end of our expectation,” stated Anil Singhal, NETSCOUT’s president and chief executive officer. “A large order in our service provider sector, which was delayed from last quarter, along with strong government spending contributed to our performance for the quarter. We are re-affirming our non-GAAP revenue guidance range of $895 million to $915 million and remain committed to managing our cost structure to deliver non-GAAP EPS within our guidance range of $1.45 to $1.50, which has been increased as a result of capital structure management.”