Thursday, August 12, 2021

China Mobile now serves 251 million 5G customers

China Mobile reported revenue of 443.6 billion yuan for the first half of 2021, up 13.8 percent year-on-year. First-half net profit rose 6 percent year-on-year to 59.1 billion yuan ($9.13 billion). Profit attributable to equity shareholders reached RMB59.1 billion, or RMB2.89 per share, up by 6.0% year-on-year. Capital expenditure was RMB86.0 billion. 

Mr. Yang Jie, Chairman of the Company commented, "In the first half of 2021, facing a complex and volatile internal and external business environment, China Mobile firmly captured development opportunities brought about by accelerated digital transformation of the economy and society. Upholding our overarching strategy of becoming a world-class enterprise by building a dynamic “Powerhouse”, we put a prime focus on our “4x3” strategic core to drive our digital-intelligent transformation in an all-round manner." 

Some highlights for 1H2021

  • As of the end of June 2021, the number of mobile customers reached 946 million, a net addition of 3.59 million. 
  • Of these, 251 million were 5G package customers, representing a net addition of 86 million. 
  • The number of customers with integrated benefit products reached 110 million, representing a net addition of 31.35 million. 
  • The number of monthly active users of the cloud product “and-Caiyun” reached 116 million. 
  • Mobile ARPU reached RMB52.2, an increase of 3.8% year-on-year, reversing the downward trajectory seen since 2018. 
  • DOU (average handset data traffic per user per month) increased by 38.7% to 11.9GB.
  • In the first half of 2021, the number of household broadband customers reached 205 million, representing a net addition of 13.39 million. 
  • Of these,  digital set-top box “Mobaihe” customers registered a total of 154 million, accounting for 74.8% of the household broadband customer base. 
  • Household broadband blended ARPU reached RMB41.1, an increase of 16.2% year-on-year.

Vertical Systems: Mid-2021 Global SD-WAN LEADERBOARD

Vertical Systems Group announces that the following seven companies achieved a position on the Mid-2021 Global Provider Carrier Managed SD-WAN LEADERBOARD (in rank order based on site share outside of home country as of June 30, 2021): Orange Business Services (France), AT&T (U.S.), Verizon (U.S.), NTT (Japan), BT Global Services (U.K.), Telefonica Global Solutions (Spain) and Vodafone (U.K.). This industry benchmark for multinational SD-WAN market presence ranks companies that hold a 5% or higher share of billable retail sites outside of their respective home countries.

Twelve companies qualify for the Mid-2021 Global Provider Managed SD-WAN Challenge Tier (in alphabetical order): Aryaka (U.S.), Colt (U.K.), Deutsche Telekom (Germany), Global Cloud Xchange (India), GTT (U.S.), Hughes (U.S.), Lumen (U.S.), PCCW Global (Hong Kong), Singtel (Singapore), Tata (India), Telia (Sweden) and Telstra (Australia). The Challenge Tier includes companies with site share between 1% and 5% of this defined SD-WAN segment.

“We’re pleased to release the first benchmark that measures Global Provider market presence based on multinational managed SD-WAN customer sites,” said Rick Malone, principal of Vertical Systems Group. “Enterprises with business-essential applications that span multiple regions of the world are choosing SD-WAN solutions from network operators with the global infrastructures, experience, partnerships and technical expertise necessary to deliver world-class services.”

Research Highlights for Global Provider SD-WAN Services:

  • Orange Business Services gained the top share rank on the Mid-2021 Global Provider Managed SD-WAN LEADERBOARD with the largest number of customer sites installed.
  • Vertical’s SD-WAN Coverage Analysis for five regional markets – North America, Latin America, Europe, Africa/Middle East, Asia/Pacific – shows that all seven companies ranked on the Mid-2021 Global Provider SD-WAN LEADERBOARD have good to strong coverage in at least three of these regions.
  • COVID-19 continues to appreciably impact every region of the world. Challenges cited by Global SD-WAN operators include workforce health protection, tracking the shift back from remote to office environments, service disconnects due to business closures, and supply chain disruptions.
  • Most multinational Managed SD-WAN customer implementations are hybrid network configurations that incorporate MPLS, IP VPN, Cloud connectivity or other services, plus multiple security capabilities that are integral or supplied by technology partners.
  • SD-WAN customers with MPLS connections are migrating to more cloud-suitable broadband services that provide bandwidth flexibility and lower pricing. DIA availability and costs vary considerably by country.
  • Ethernet DIA is the preferred choice for SD-WAN customers that require dedicated, symmetrical connectivity. Five of the seven companies on the Mid-2021 Global Provider SD-WAN LEADERBOARD are ranked on the 2020 Global Provider Ethernet LEADERBOARD (in rank order): AT&T, Orange Business Services, Verizon, BT Global Services and NTT.
  • Two companies ranked on the Mid-2021 Global Provider SD-WAN LEADERBOARD – AT&T and Verizon – have attained MEF 3.0 SD-WAN Services Certification to date. Additionally, three companies cited in the Challenge Tier – Colt, PCCW Global and Telia – have MEF 3.0 SD-WAN Services certification.
  • The primary technology suppliers to the nineteen Mid-2021 Carrier Managed SD-WAN LEADERBOARD and Challenge Tier companies are as follows (in alphabetical order): Cisco, Fortinet, HPE Aruba, Nuage Networks by Nokia, Versa and VMware.
  • The Market Player tier includes providers with site share below 1%. Companies in the Mid-2021 Market Player tier are as follows (in alphabetical order): Batelco (Bahrain), China Telecom (China), Claro Enterprise Solutions (Mexico), CMC Networks (South Africa), Cogent (U.S.), Epsilon (Singapore), Etisalat (Abu Dhabi), Expereo (Netherlands), HGC Global (Hong Kong), Intelsat (U.S.), KDDI (Japan), Masergy (U.S.), Meriplex (U.S.), PLDT Enterprise (Philippines), SES (Luxembourg), Sparkle (Italy), StarHub (Singapore), Syringa Networks (U.S.), T-Mobile (U.S.), Telenor (Norway), Telin (Singapore), Transtelco (U.S.), Virgin Media (U.K.), Zayo (U.S.) and other providers selling SD-WAN services outside their home country.

ADVA introduces a 25G Layer 2 demarcation device

ADVA introduced a Layer 2 demarcation device for 25Gbps connectivity services, including 5G sites and cable networks adopting DOCSIS 4.0.

The compact ADVA FSP 150-XJ128 device supports 25Gbit/s Ethernet services with sophisticated OAM capabilities. It features fanless operation and an extended temperature range, removing the need for expensive air-conditioning. The FSP 150-XJ12 offers hardware-assisted synchronization features and also meets the most stringent timing requirements. Management is provided by ADVA’s Ensemble Controller and Ensemble Packet Director.

“Our FSP 150-XJ128 is the technology that businesses have been calling for. It empowers them to take the natural next step with zero hassle and without unnecessary expense. For many enterprises, trying to manage rapidly rising bandwidth needs using 10Gbit/s demarcation devices has become a real headache. Yet it doesn’t make economic sense to overhaul their entire system and go all the way to 100Gbit/s. What we’re providing is the ideal stepping stone for secure business growth,” said Christoph Glingener, CTO, ADVA. “Until today, there was no middle ground. Now, businesses can slot our FSP 150-XJ128 into their existing network infrastructure and seize new revenue opportunities.”

ZTE wins high-end router contract from China Mobile

ZTE won the bid for Section 3 (high-end router level 3) and Section 5 (high end router level 5) with the second highest scores in China Mobile’s centralized procurement of high-end routers for the year 2021-2022.

This is the largest centralized procurement for high-end routers and switches by China Mobile since 2020. The equipment that ZTE provides will be respectively deployed in China Mobile’s MAN core, 5GC network cloud and UPF scenarios in many cities across China.

ZTE’s ZXR10 T8000 and ZXR10 M6000-S products will respectively act as CR in CMNET provincial network and IDC, CE at cloud egress, and UPF CE , to provide key resources for the large-scale development of 5G and cloud-network synergy services of China Mobile.

In China Mobile’s largest centralized procurement of data communication product in 2019, ZTE’s ZXR10 M6000-S series high-end router grabbed the largest share in Section 2 (2T high-end routers) and the second largest share in Section 3 (400G high-end routers) respectively.

SpaceLink picks Mynaric for optical inter-satellite terminals

SpaceLink awarded a contract valued at $28 million to Mynaric for optical inter-satellite link (OISL) terminals for satellites in Medium Earth Orbit (MEO).

Mynaric expects to ship SpaceLink's first units during the first quarter of 2023. 

The final details of this agreement are just the beginning of a strategic partnership designed to bring fast, highly secure and continuous communications between spacecraft and the ground. Our industrialized approach to production will allow us to meet the expanded needs as SpaceLink's constellation grows," said Tina Ghataore, president, Mynaric USA and Chief Commercial Officer, Mynaric.

Rockley Photonics to begin trading on NYSE as RKLY

Rockley Photonics, a leading global silicon photonics firm, completed its business combination with SC Health Corp. The combined company will retain the Rockley Photonics, Ltd. name as a subsidiary of Rockley Photonics Holdings, Ltd., which will commence trading on the NYSE under the new ticker symbol “RKLY” on August 12. 

The approximately $167.8 million in gross proceeds available to Rockley following the combination is expected to enable the company to accelerate the commercial launch of its unique sensing platform and execute the 2023 and 2024 revenue projections as outlined in prior investor presentations. 

Rockley said its platform is positioned to revolutionize consumer health and wellness by enabling continuous, non-invasive monitoring of multiple biomarkers, including core body temperature, blood pressure, body hydration, alcohol, lactate, and glucose, among others. 

“Silicon photonics has tremendous potential to transform multiple industries through a broad range of applications, particularly in the health and wellness space by bringing laboratory-grade measurement on the wrist much closer to reality,” said Dr. Andrew Rickman, chief executive officer and founder of Rockley Photonics. “As we continue on the next phase of our growth as a public company, we are in a much stronger position to create solutions that can provide a new class of actionable insights, transform digital healthcare, and deliver life-changing benefits to people across the globe.”

Sierra Wireless posts Q2 sates of $133 million, up 19% yoy

Sierra Wireless reported Q2 revenue of $132.8 million, an increase of 18.9% compared to $111.7 million in the second quarter of 2020. Gross margin was 34.8% in the second quarter of 2021 compared to 36.7% in the second quarter of 2020. The decrease was primarily impacted by increased component costs. Adjusted net loss from continuing operations was $1.1 million, or loss of $0.03 per share, in the second quarter of 2021 compared to $13.0 million, or loss of $0.36 per share, in the second quarter of 2020.

Quarterly revenue for our two business segments was as follows:

  • Revenue from IoT Solutions increased by 16.3% to $90.3 million compared to $77.6 million in the second quarter of 2020. The increase in revenue was primarily due to the growth in LPWA and mobile broadband modules as well as IoT connectivity.
  • Revenue from Enterprise Solutions increased by 24.6% to $42.5 million compared to $34.1 million in the second quarter of 2020. The increase was primarily due to improved sales of our enterprise gateway products.

“Revenue in the Second Quarter improved year over year and sequentially, non-GAAP operating expenses remained flat with the prior quarter, and Adjusted EBITDA improved,” said Phil Brace, President and CEO. “I look forward to bringing my operational and strategic experience to Sierra Wireless as we focus on profitable growth.”

Product revenue increased 15.1% year over year to $97.6 million, representing 73.5% of consolidated revenue in the quarter. Connectivity, software, and services revenue increased 30.8% year over year to $35.2 million, representing 26.5% of consolidated revenue. Monthly recurring revenue was $11.4 million in June, a year over year increase of 25.3%.

VIAVI posts revenue of $310.9 million, up 16.6% yoy

VIAVI reported quarterly revenue of $310.9 million, up $44.3 million or 16.6% year-over-year. GAAP net loss was $(1.9) million, or $(0.01) per share. Non-GAAP net income was $52.8 million, or $0.22 per share.

"VIAVI had a strong finish to fiscal year 2021 with a record $1.20 billion in revenue and non-GAAP EPS at $0.83.  Fiscal Q4 posted record revenue and non-GAAP profitability for a June quarter as it exceeded the high end of the guidance range in revenue, non-GAAP operating margin and non-GAAP EPS," said Oleg Khaykin, VIAVI's President and Chief Executive Officer. "NSE's 13.5% year-on-year growth and record revenue was driven by the continued market rebound and strong demand for Fiber and Wireless products.  OSP revenue was in-line with our guidance, up 27.8% from a year ago levels reflecting continued strength in Anti-Counterfeiting."

Khaykin added, "We expect fiscal year 2022 to be a strong year for VIAVI with 5G deployment and Fiber network upgrades driving NSE revenues and OSP benefiting from the continued strong demand for Anti-Counterfeiting and 3D Sensing products. Overall, we expect fiscal year 2022 to achieve higher levels of revenue and non-GAAP profitability."