Tuesday, November 23, 2021

Verizon completes acquisition of TracFone for prepaid customers

 Following regulatory approval from the FCC, Verizon completed its $6 billion acquisition of TracFone, the largest reseller of wireless services in the U.S., serving approximately 20 million subscribers through a network of over 90,000 retail locations nationwide. The deal positions Verizon as the leading pre-paid, value and premium wireless carrier.

Verizon paid  Mexico-based América Móvil a closing consideration of US$3.125 billion in cash, subject to customary adjustments, and 57,596,544 shares of Verizon stock. Subject to TracFone continuing to achieve certain operating metrics, Verizon shall pay up to an additional US$650 million cash consideration.

Tracfone has been longtime partner of Verizon and there are currently more than 13 million TracFone subscribers on Verizon’s wireless network through an existing wholesale agreement. The remaining Tracfone customers are served by through other carriers.

“We’re thrilled to welcome TracFone and its employees to the Verizon family and look forward to bringing new products and enhanced services to this attractive segment of the market. Our new premium and value customer base will benefit from the combined organization's offerings—now and in the future,” said Ronan Dunne, CEO, Verizon Consumer Group. “The addition of the TracFone brands firmly establishes Verizon as the provider of choice in the value segment, which complements our clear leadership in the premium segment,” he added.

“For over 25 years, TracFone Wireless, Inc. has provided wireless solutions to value-conscious consumers,” said Eduardo Diaz Corona, CEO TracFone Wireless, Inc. “With the power of Verizon, we will be able to bring innovative offerings and better value to market quicker, allowing us to further our purpose to deliver Coverage & Access For All.” 


DOCOMO solidifies capital structure with JTOWER

DOCOMO plans to acquire part of JTOWER shares held by NTT Corporation and become a shareholder with 2.5% voting rights in the future.

DOCOMO started using the JTOWER's Infra-Sharing solution for its 4G network in 2016 and has expanded the use of the solution nationwide. 

From October 2020, DOCOMO started using 5G IBS at the time JTOWER installed 5G IBS in the Tokyo Metropolitan Government as the first 5G Infra-Sharing in Japan, and also began using Smart Poles(2) in the Nishi-Shinjuku area of Tokyo. Both companies have continued to promote the use of Infra-Sharing through these activities.

In addition to considering ways to develop new indoor and outdoor networks and the efficient use of existing towers, the companies will develop an efficient 5G network which will lead to the reduction of capital investments and other costs, power consumption, and installation spaces. Going forward, the companies will aim to realize the early expansion of 5G coverage by promoting Infra-Sharing.

JTOWER has previously announced capital and business alliances with KDDI and Rakuten Mobile.

JTOWER investor presentation - November 2021


NTT West to sell 71 mobile towers to JTower

NTT West agreed to sell 71 of its owned telecommunications towers to JTOWER. NTT West will then lease back the same facilities.

Under the deal, NTT Group will provide JTOWER and telecommunications companies attracted by JTOWER with optical fiber service required for 5G and NTT's telephone office building spaces required for the installation of telecommunications equipment. In addition, NTT Group will advise to support operations such as construction and maintenance, to contribute to the early development of 5G, and on the optimization of capital expenditures.


Vantage Data Centers cites progress with its massive Phoenix campus

Vantage Data Centers  announced the topping out of its first 32MW data center in Goodyear, Arizona, just outside of Phoenix.

This will be the company’s largest North American campus when fully developed at 160MW and second largest globally, after its 270MW Cardiff campus in the U.K.  Located on 50 acres within Goodyear’s “Bullard Tech Corridor,” this growing campus will include three data centers and more than 1 million square feet once fully developed. 

The first phase of development will be comprised of a single-story facility offering 32MW of critical IT capacity and is scheduled to be operational in the spring.

Vantage notes that its new Phoenix campus will employ a closed-loop chilled water system with air-side economizers that allows for reduced energy use based on outside ambient temperature. The system uses no ongoing water, a critical feature in this region, making the planned water usage efficiency (WUE) near zero (liters/kW/hr).

“As we continue to expand globally, Vantage is also increasing our footprint across North America to meet our customers growing needs, providing high-quality data centers in strategic markets,” said Jeff Tench, president, North America, Vantage Data Centers. “Our customers have identified Phoenix as an ideal location due to its low power costs, rich connectivity and business-friendly environment. This is a fitting market for hyperscalers, cloud providers and larger enterprises who need a west coast presence for their digital infrastructure requirements.”


LightCounting Forecast: Access Optics 2022-2026

The market for optics for access networks will exceed $7.5 billion cumulatively over the next five years, according to LightCounting's latest Access Optics Report and Forecast.

LightCounting predicts sales of PON optics will exceed $3 billion, and sales of grey and WDM transceivers for fronthaul will account for another $2.9 billion from 2022-2026, with the balance being for backhaul and midhaul applications.

The report expects that during the forecast period, 25G and 50G PON standards will be finalized, new fronthaul architectures will be developed, and LEOS satellite providers will wage a serious competitive battle against the entrenched internet providers of the past two decades. In addition, governments are taking renewed interest in promoting and providing financial support to boost the deployment of broadband.


Dell'Oro: Supply chain is impacting but not derailing RAN momentum

 The ongoing supply chain shortage impacted the radio access network (RAN) market in the third quarter, with multiple suppliers and operators now raising flags, according to a new report from Dell'Oro Group. However, preliminary estimates suggest that the overall 2G-5G RAN infrastructure equipment market recorded a seventh consecutive quarter of year-over-year growth in the third quarter.

“The RAN market remains on track for a fourth consecutive year of robust growth, underpinned by healthy demand for connectivity”, said Stefan Pongratz, analyst with the Dell’Oro Group. “At the same time, more challenging comparisons combined with increased risks surrounding the supply chain will weigh on the market in 2022,” continued Pongratz.

Additional highlights from the 3Q 2021 RAN report:

  • Global RAN rankings remained unchanged with Huawei, Ericsson, Nokia, ZTE, and Samsung leading the market.
  • RAN revenue shares are changing as on-going efforts by the US government to curb the rise of Huawei and improve supplier diversification are starting to show in the numbers, especially with new footprints outside of China.
  • Preliminary estimates suggest Ericsson, Nokia, and Samsung were the top three 5G RAN suppliers outside of China in the quarter.
  • Following two consecutive years of double-digit growth, total RAN revenues are projected to advance 3 percent in 2022.


Verizon to deliver global SD-WAN for FM Logistic

Verizon Business has been selected by FM Logistic, an international supplier of supply chain services with a strong customer base in the consumer goods, retail, cosmetic, industrial and health sectors. It employs more than 27,200 people.

The secure SD WAN network will run across FM Logistic’s operations in 14 countries and is a fundamental part of the company’s growth and ongoing digital transformation.

“With new digital applications on the horizon such as Internet of Things, Artificial Intelligence and Machine Learning creating a digital data explosion, it is crucial that businesses assess their existing networks to ensure they are ready for this fast-paced digital future,” said Scott Lawrence, Group Vice President of Verizon Business in Europe. “Newer networks feature better security, more capacity and enhanced functionality. They can help supercharge strategic business growth and new service innovation for increased competitive advantage.”

Although its current Verizon network was recognized for its uptime performance and reliability, FM Logistic knew that to take advantage of new high-bandwidth applications and prepare its infrastructure for the next generation of operational innovation, the network needed to be upgraded. This would also enable it to take advantage of the surge of new digital logistical data available, such as delivery, route and supply chain management data, in order to drive even better services to its customers.

“This global, powerful, evolutive, resilient and secure infrastructure is the foundation of our IT landscape and its connectivity will help enable us to manage complex omnichannel end to end supply chain operations for our customers, migrate services to the cloud and introduce new urban logistics solutions. We see high performance and the near real-time visibility of data as critical in serving our customers, delivering their goods on time and in perfect condition,” said Alexandre Brauner, Group Information Systems Director at FM Logistic. “Verizon Business has been our trusted network partner for the past decade and we are confident that they are also the right partner for our future. We’re excited to explore how other technologies such as 5G could help us strengthen our business processes and support our business strategy.”

Compal Electronics deploys Enea's 5G MicroCore for private 5G

Compal Electronics, one of the world’s largest original design manufacturers (ODMs), has deployed the Enea 5G MicroCore to manage data on its private wireless network and enhance its smart manufacturing and Industry 4.0 capabilities. 

Compal, which based in Taiwan, is leveraging Enea’s 5G MicroCore across a range of smart technologies including agritech, digital healthcare, robotics, and immersive gaming to utilize 5G technology. The ODM needed to securely authenticate and provision various devices, including Virtual Reality (VR) and Augmented Reality (AR) headsets over 5G radio and small cells. The fully virtualized 5G MicroCore provides secure authentication thanks to the integrated data management capabilities that include a Unified Data Manager (UDM), Authentication Server Function (AUSF) and User Data Repository (UDR).

Enea’s said its solution stores and manages data across all 5G core and edge functions for seamless 4G/5G interworking.

“Our 5G MicroCore solves another critical issue”, added Jonas Jacobsson, Senior Vice President Head of Service Provider Sales, Enea. “Our virtualized technology is cutting total cost of ownership (TCO) by up to 50%, while boosting sustainability for enterprises and operators. The 5G MicroCore solution makes a tangible difference, reducing the number of servers – cutting the carbon footprint - with no trade-offs in performance.”


VMware hits Q3 sales of $3.19 billion, up 11%

VMware announced revenue for the third quarter was $3.19 billion, an increase of 11% from the third quarter of fiscal 2021. Non-GAAP net income for the third quarter was $725 million, or $1.72 per diluted share, up 3% per diluted share compared to $704 million, or $1.66 per diluted share, for the third quarter of fiscal 2021.

“We are pleased with our continued strong performance in Q3. This quarter, as we unveiled many new offerings at VMworld, we showcased how we are helping customers transform their businesses today and that our innovation engine is thriving,” said Raghu Raghuram, CEO, VMware. “Our mission is to be the trusted software foundation to accelerate our customers’ innovation without compromise. We are committed to helping organizations unlock the full potential of multi-cloud.”

Some highlights:

  • The combination of subscription and SaaS and license revenue was $1.53 billion, an increase of 16% from the third quarter of fiscal 2021.
  • Subscription and SaaS revenue for the third quarter was $820 million, an increase of 21% year-over-year.
  • Subscription and SaaS ARR for the third quarter was $3.31 billion, an increase of 25% year-over-year.
  • Completed a spin-off from Dell Technologies on November 1, 2021.
  • Announced the VMware Sovereign Cloud initiative, partnering across VMware Cloud Providers to deliver cloud services on sovereign digital infrastructure.
  • Introduced VMware Edge, a product portfolio that will enable organizations to run, manage & better secure edge-native apps across multiple clouds, anywhere.


Nutanix sees quarterly revenue hit $378.5 million, up 21% yoy

Nutanix reported revenue of $378.5 million for its first quarter ended October 31, 2021, up 21% compared to the same period a year ago. Non-GAAP gross margin was 82.1%. 

“In our first quarter, we achieved record ACV billings, which grew 33 percent year-over-year, and saw 21 percent year-over-year revenue growth, our highest growth in over three years,” said Duston Williams, CFO of Nutanix. “With the continued progress we’ve made on our subscription model, we believe it’s now appropriate to provide annual guidance. Additionally, having gained a better understanding of potential fluctuations in our average contract term lengths, we are guiding to revenue, on both a quarterly and annual basis.”

During the quarter, Nutanix and Citrix announced a strategic partnership to provide secure, on-demand, and elastic access to apps, desktops, and data from any device, in any location, at any scale through Nutanix hyperconverged infrastructure (HCI) and hybrid multicloud deployments of Citrix DaaS and Virtual Apps and Desktops services.

COVID cancellation: IBC conference in Amsterdam, December 3-6

 Due to the rising number of COVID cases in Holland, the in person IBC2021 event, which was due to take place on December 3-6 at The RAI in Amsterdam, has been cancelled.  A virtual version of the event will still take place.

IBC targets the international broadcast community. In 2019, IBC attracted more than 56,000 attendees from 150 countries around the world, exhibiting more than 1,700 of the world's key technology suppliers and showcasing a debate-leading conference.