Sunday, April 10, 2022

OIF's Multi-vendor demonstration of Co-Packaged Optics (CPO)

Nathan Tracy, Vice President of Marketing for the OIF, gives a multivendor demonstration of OIF's 3.2T Module project and external laser project (ELSFP). A variety of interoperable components that enable co-packaging are shown, along with a system implementation.

Google's Topaz cable to link Canada and Japan

Google unveiled plans for Topaz, the first-ever fiber cable to connect Canada and Asia. 

The Topaz cable will house 16 fiber pairs, for a total capacity of 240 Terabits per second, and will feature Wavelength Selective Switch (WSS) technology for flexibility in routing and advanced resilience. 

Notably, the eastern-end of Topaz will use the original cable landing station in Vancouver employed by the 1960s era Commonwealth Pacific Cable System (COMPAC), a copper undersea cable linking Vancouver with Honolulu (United States), Sydney (Australia), and Auckland (New Zealand).

In a blog post, Bikash Koley,VP and Head of Google Global Networking and Head of Technology and Strategy, also notes that the Google consulted and partnered with First Nations communities in Canada on the project.

Pacific Light subsea cable gets U.S. green light

Google and Meta Platforms Inc. (formerly Facebook) reached an agreement with Team Telecom (U.S. Departments of Justice, Defense, and Homeland Security) on how to protect data on the Pacific Light Cable Network (PLCN) system, an undersea fiber optic cable system that will connect the United States, Taiwan and the Philippines. “These agreements enable Google and Meta to take advantage of critical, additional cable capacity while protecting U.S....

Google and Facebook Team Up for Pacific Light Cable Network

Facebook and Google are teaming up to build the highest capacity, trans-Pacific cable system to date. The Pacific Light Cable Network (PLCN), which will stretch 12,800 km between Los Angeles and Hong Kong, will have an estimated cable capacity of 120 Tbps.  The cable is expected to enter service in the summer of 2018. The project is organized by Pacific Light Data Communication Co. Ltd., a new company based in Hong Kong. TE SubCom has been...

Transpacific FASTER Cable Enters Service with 60 Tbps Capacity

The world's highest capacity undersea cable system has entered commercial service -- six fiber pairs capable of delivering 60 Terabits per second (Tbps) of bandwidth across the Pacific. FASTER is a 9,000km trans-Pacific cable connecting Oregon and two landing sites in Japan (Chiba and Mie prefectures). The system has extended connections to major hubs on the West Coast of the U.S. covering Los Angeles, the San Francisco Bay Area, Portland and Seattle....

Senko: Connectors for the Terabit Era

Tiger Ninomiya, Technology & Innovation Manager, SENKO Advanced Components, shows fiber optic connectors for the next era of terabit connectivity requiring multiple breakouts at the transceivers.

The SENKO SN-MT can accommodate up to 3,465 fiber connections in a 1 rack unit (RU) patch panel. This next-generation multi-fiber connector carries a maximum of 16-fibers in a single row while maintaining the regular SN connector footprint. 

Elisa Polystar acquires FRINX for network automation

Elisa Polystar has acquired FRINX s.r.o, a Slovak telecom network automation software supplier. Financial terms were not disclosed.

FRINX is a privately owned software provider founded in Bratislava, Slovakia, in 2016. The company cites deployments with leading CSPs. The company has around 40 experts working in its projects. 

Elisa Polystar is a world-leading network automation and analytics solutions provider, serving over 120 CSPs globally. With its background as an international business of Finland’s largest CSP, Elisa Polystar’s solutions are proven and tested in live networks.

Elisa Polystar says FRINX products and software will complement its own zero-touch automation and analytics offering, which helps communications service providers (CSPs) automate their network management processes in a multivendor telecom network environment. 

Gerhard Wieser, CEO and co-founder of FRINX: “We are excited about the possibilities for us and our customers that arise from joining Elisa Polystar. Elisa Polystar is a true pioneer in network automation and operates globally. By joining them, we get access to a global sales channel as well as increased machine learning capabilities and resources. For our own people, it means a chance to join an extended global network of software professionals with more opportunities for personal growth and broader career opportunities.”

Kirsi Valtari, EVP for Automation at Elisa Polystar: “I am happy to welcome the very skilled FRINX experts to join our Automation team. FRINX products and software are a fantastic complement to our own suite of automation solutions, and we’re excited about the possibilities for collaboration going forward. Together, we will be able to create new and even better ways to enhance the operations of customers of both Elisa Polystar and FRINX.”

AT&T resets focus on connectivity following WarnerMedia deal

AT&T and Discovery completed their previously announced deal to coming the WarnerMedia business with Discovery. This creates a a premier standalone global media and entertainment company, Warner Bros. Discovery, Inc., leaving AT&T to focus on its exclusively on its connectivity mission.

“We are at the dawn of a new age of connectivity, and today marks the beginning of a new era for AT&T,” said John Stankey, AT&T chief executive officer. “With the close of this transaction, we expect to invest at record levels in our growth areas of 5G and fiber, where we have strong momentum, while we work to become America’s best broadband company. At the same time, we’ll sharpen our focus on returns to shareholders. We expect to invest for growth, strengthen our balance sheet and reduce our debt, all while continuing to pay an attractive dividend that puts us among the top dividend paying stocks in America."

Under the deal, at close AT&T received $40.4 billion in cash and WarnerMedia’s retention of certain debt. Additionally, shareholders of AT&T received 0.241917 shares of WBD for each share of AT&T common stock they held at close. As a result, AT&T shareholders received 1.7 billion shares of WBD, representing 71% of WBD shares on a fully diluted basis. Discovery’s existing shareholders own the remainder of the new company. In addition to their new shares of WBD common stock, AT&T shareholders continue to hold the same number of shares of AT&T common stock they held immediately prior to close.

AT&T looks to ramp investment in 5G and fiber

 AT&T is setting its sights on becoming "America's best broadband provider" based on a strategy of owning and operating both fiber and wireless. In light of closing its pending WarnerMedia transaction with Discovery, AT&T updated its financial expectations for 2022 and 2023, saying it will shift Capex to fiber and 5G.

“Now that the close of the WarnerMedia deal is approaching, we are near the starting line of a new era for AT&T,” said John Stankey, AT&T chief executive officer. “The transformation we’ve undergone over the past 18 months while delivering outstanding operational results has brought us to this point. We will be a simpler, more focused company with the intent to become America’s best broadband provider. We plan to ramp up investment in our key areas of growth — 5G and fiber. And at the same time, we will retain our focus on growing customer relationships, continuously improve our execution to enhance the customer experience and deliver growth and returns for our shareholders.

Key elements of the plan:

  • AT&T plans to double its fiber footprint to 30-plus million locations,2 including increasing its business customer locations by 2x to 5 million. In doing so, the company expects to add 3.5 million to 4 million customer locations each year. 
  • AT&T plans to deploy 120 MHz of mid-band spectrum to cover more than 200 million people by the end of 2023. This complements the company’s existing 5G footprint, which covers more than 255 million people in more than 16,000 cities and towns.
  • AT&T also expects to continue benefitting from the migration of customers to its unlimited plans, particularly to higher-ARPU Unlimited Elite — the company’s fastest-growing rate plan. In addition, as its fiber footprint expands, the company expects to continue gaining share in the consumer broadband market where it offers fiber, building upon the momentum it has established with four consecutive years of 1 million or more fiber subscriber additions.
  • AT&T expects to drive significant savings by reducing the company’s legacy copper footprint. By 2025, AT&T expects that 75% of its network footprint will be served via fiber and 5G and that it will have reduced its copper services footprint by 50%. At the same time, the company will successfully navigate the timing and profitability of the migration from legacy to next-generation products to optimize returns.
  • AT&T is also focused on simplifying its business product portfolio, with plans to reduce the number of products and legacy rate plans by 50%. This simplification enables the company to focus on a repeatable playbook to deliver core connectivity and transport solutions with attractive owner’s economics.
  • AT&T is also developing software solutions on top of its connectivity. These include Network Edge solutions through alliances with Microsoft Azure and Google Cloud; Private 5G services offering businesses, universities and the public sector private cellular networks that seamlessly integrate with AT&T’s nationwide macro network; and solutions to provide safe, secure connectivity in today’s hybrid work environments.
  • AT&T plans to use cash flow from more mature businesses to help fuel its planned $24 billion in annual capital investment in 2022 and 2023, with incremental cost savings hitting the bottom line.3
  • By the end of 2023, the company expects to reach $6 billion in run-rate cost savings. By the end of 2021, it had achieved more than $3 billion in cost savings, which were primarily reinvested into the company’s growth engines.
  • In addition to its network pivot from copper to fiber and 5G, the company is focused on enhancing the customer experience and streamlining operations in areas like corporate G&A, supply chain and technology platforms to yield further cost benefits. And in 2022 and 2023, AT&T expects an additional $2.5 billion in cumulative cost savings, which will increasingly fall to the bottom line, driving growth in adjusted EBITDA.

For 2022, the company expects:

  • Low single-digit total revenue growth, up from $118.2 billion on a pro forma basis in 2021, driven by 3% or better growth in wireless service revenues and 6% or better growth in broadband revenues.
  • Adjusted EBITDA of $41 billion to $42 billion, up from $40.3 billion on a pro forma basis in 2021, even with about $600 million in headwinds from 3G shutdown costs and absence of CAF II credits, which are weighted to the first half of 2022.
  • In addition to revenue growth, the company expects adjusted EBITDA to benefit from incremental cost transformation savings of about $1 billion versus 2021 levels.
  • Adjusted EPS of $2.42 to $2.46, compared to $2.41 on a pro forma basis in 2021, with growth in adjusted EBITDA and operating income partially offset by a higher effective tax rate.7
  • Capital investment in the $24 billion range, including about $5 billion to deploy 5G spectrum, compared to $20.1 billion on a pro forma basis for 2021.

For 2023, the company expects:

  • Continued low single-digit revenue growth, driven by low single-digit growth in wireless service revenues and a ramp in broadband revenue growth to the mid to high single-digit range.
  • Adjusted EBITDA of $43.5 billion to $44.5 billion, with approximately $1.5 billion in additional cost transformation savings.
  • Adjusted EPS of $2.50 to $2.60.
  • Capital investment in the $24 billion range with consistent investment in 5G spectrum deployment in the $5 billion range.
Analyst Day materials are posted online.