Thursday, August 11, 2022

FiBrasil partners with Padtec on Network Operations Center

FiBrasil, a Brazilian operator of neutral networks, has formed a partnership with Padtec focused on managing the operation of its communication networks in Brazil. The services include monitoring and technical support through Padtec’s Network Operations Center (NOC).

Located at its headquarters in Campinas, in the interior of São Paulo, Padtec’s NOC offers remote network monitoring and support services, available 24 hours a day, 7 days a week. Services are provided by specialized technicians who have an advanced infrastructure, with resources such as dual approach fiber optic routes,  fire protection systems, UPS and generators to ensure uninterrupted operation in the event of a power failure, and a disaster recovery plan that allows for fully remote operation. All this with the capability of defining service level agreements (SLAs) suited to the needs and requirements – as well as the investment capacity – of each provider.

Padtec’s NOC service (contracted by FiBrasil) is part of the company’s business unit, which currently has 40 points of presence distributed throughout Brazil, Argentina and Colombia. The objective is to help and boost the business of providers operating in the broadband market by optimizing the resources of their networks.

FiBrasil is a joint venture that works in the construction, operation and commercialization of a neutral fiber optic network for internet providers and telecommunications operators who wish to expand their coverage throughout Brazil. The company aims to triple the number of municipalities covered by the end of this

“Our current coverage is approximately 70 cities, and the goal is to reach 200 cities by the end of 2022”, highlights Atila Branco, FiBrasil’s CTIO. “Padtec is a reference in the operation of fiber optic networks and therefore is the ideal partner for our business, allowing us to focus on the expansion of our network and on the high quality operational characteristics of FiBrasil“, he adds.

“With the offer of a complete solution of telecommunications services, which involves the planning of the system to the installation, operation and maintenance of the networks, we add value to our delivery and provide more security and comfort to our customers”, said Carlos Raimar, CEO of Padtec.

Brazil's AdylNet picks Padtec for optical backbone

AdylNet, a telecommunications service provider in Rio Grande do Sul with an optical network of more than 22,000 kilometers, has adopted  Padtec’s line of 800 Gbps transponders (up to 400 Gbps per optical channel) for an optical backbone linking the capitals of São Paulo, Curitiba, Florianópolis and Porto Alegre and cities from the interior of Rio Grande do Sul. 

Based in Nova Prata (RS), AdylNet currently serves more than 50,000 residential, corporate and wholesale (ISP) users. The decision to modernize its network infrastructure is part of the company’s strategy to meet – with quality – the growing demands for bandwidth and new services in the regions where it operates. 

Padtec’s LightPad i6400G platform’s 800 Gbps line of transponders allows transmitting extremely high data rates over short to long distances in terrestrial and underwater DWDM networks. 

“With this generation of transponders, providers optimize their operation, since it is possible to carry more traffic with a smaller amount of equipment. This reduces the cost per transmitted bit, as well as energy and space consumption, which are scarce in telecommunications environments”, explains Argemiro Sousa, Padtec’s Business Director.

Colt optimises low latency routes between Singapore and Sydney

by James E. Carroll

Colt Technology Services, has substantially reduced the latency between the Singapore and Australian exchanges, realising the fast connectivity in the market of less than 87ms.

The round-trip latency values were measured with 1000Base-X and 64-byte packets on a 1Gbps test line between Colt POPs located at ASX and SGX Building.

The low latency route upgrade follows recent upgrades and additions to Colt’s other ultra-low latency routes, including new ultra-low latency routes between the SET, HKEX and SGX, between JPX and HKEX, HKEX to SGX and ASX to CME, as well as new services connecting markets in South Korea and Taiwan. This is an addition to other markets across Asia, Europe and the US, where Colt is a market leader in connectivity, hosting and exchange colocation facilities provision.

Arthur Rank, Global Director, Capital Markets Solutions, said: “We are continuing to invest heavily in upgrading our ultra-low latency infrastructure in the Asia-Pacific and around the world. The SGX-ASX route is particularly important for derivative and FX players in the region. We will continue to push boundaries to bring the fastest connectivity speeds in a competitive market.”

“Fast connectivity is critical for enabling capital market firms of all kinds to execute trading strategies faster. Our highly secure ultra-low latency network services are used by the most demanding buy-side and sell-side firms in key liquidity hubs globally, including Tier 1 financial institutions. We are committed to helping them thrive in the Asia-Pacific.”


Deutsche Telekom remains on course as sales rise 5.9% yoy

Citing strong earnings trends despite macroeconomic headwinds, Deutsche Telekom reported Q2 2022 net revenue of 28.2 billion euros, up 5.9 percent compared to a year earlier. Adjusted net profit was up 15.7 percent to 2.4 billion euros.

“We continue to grow, despite the difficult economic environment,” said Tim Höttges, Chairman of the Board of Management at Deutsche Telekom. “We are well on track this year to meet our ambitious targets announced at the 2021 Capital Markets Day. Our investments are paying off.” 

Some highlights

Germany: revenue and earnings continue to grow 

The Germany segment delivered strong financials in the second quarter of 2022. Revenue grew by 2.7 percent year-on-year to 6.1 billion euros. Adjusted EBITDA AL recorded even stronger growth of 3.1 percent to 2.4 billion euros in the second quarter. This corresponds to an EBITDA margin of 40.0 percent and earnings growth for 23 quarters in a row.

In mobile communications, service revenues grew by 2.6 percent, continuing the high-level growth of the previous quarters. Branded contract net additions of 194,000 substantially exceeded the prior-year quarter.

Telekom remains the strongest broadband provider in the German market, which was weaker overall in the second quarter. 45,000 broadband net additions were recorded between April and June. The number of fiber-optic-based lines (FTTx, retail and wholesale) increased to 17.7 million. This means that around 75 percent of retail broadband customers are already using the fiber infrastructure. 

United States: customer growth at record level

In the second quarter of 2022, the mobile postpaid net additions were at a record level of 1.7 million: the best-ever customer growth in a second quarter, more than the competitors AT&T and Verizon in this quarter combined. The total customer base increased to 110 million, up 5.2 million year-on-year. 

Total revenue at T-Mobile US decreased slightly by 1.1 percent in the reporting quarter to 19.8 billion U.S. dollars. This was due to the decline in revenue from handset leasing, due to the planned gradual withdrawal from this Sprint business model. Adjusted EBITDA AL declined by 2.4 percent to 6.7 billion U.S. dollars. 

Thanks to the fact that the integration of Sprint has continued to progress well and rapidly, T-Mobile US is raising its guidance for the synergies from the business combination to between 5.4 and 5.6 billion U.S. dollars in 2022, up from the previous range of between 5.2 and  5.4 billion U.S. dollars. 

Europe: growth course continues unabated

The European national companies continued to grow unabated in the second quarter. Adjusted EBITDA AL grew 4.5 percent year-on-year in organic terms, making 18 successive quarters of growth. 

Revenue also recorded organic growth of 4.2 percent. The reported revenue of 2.7 billion euros was 2.7 percent lower than in the prior-year quarter. The difference between the reported and organic figures essentially results from the sale of the Romanian fixed-network business at the end of September 2021. 

243,000 mobile contract net additions were recorded in the second quarter. Broadband net additions were at the same level as in the previous quarter at 70,000. 186,000 new users were won for fixed-mobile convergence products.

Milestone: Deutsche Telekom now has 5,000 5G antennas

Deutsche Telekom reports that its 5G rollout continues at pace with more than 5,000 antennas now part of its 5G network. Around 350 new sites have been added in recent weeks. In total, almost 1,700 sites make up the very fast 5G network. The antennas transmit at the 3.6 gigahertz (GHz) frequency. The network can provide up to one gigabit per second for download speeds. New additions to the list are locations from all over Germany,...

Deutsche Telekom ends software development in Russia

Deutsche Telekom confirmed that it is closing it software development activities.In a follow-up to its press conference on February 24, the German carrier issued the following statement:"Deutsche Telekom does not operate any networks in Russia. We have no business relationships with companies in Russia. However, we have a team of software developers, mainly in St. Petersburg, who provide services to customers outside Russia.In recent weeks, we have...

Intelsat and OneWeb offer multi-orbit connectivity to airlines

OneWeb and Intelsat  signed a global distribution partnership agreement to offer airlines a seamless inflight connectivity solution with the best combination of performance, coverage, and reliability on the market. 

The partnership enables Intelsat to distribute OneWeb’s low Earth orbit (LEO) satellite services to airlines worldwide, coupled with Intelsat’s extensive IFC experience and existing geo-stationary (GEO) satellite service.  The companies expect the multi-orbit solution to be in service by 2024.

“This level of connectivity will enable airlines to maximize brand affiliation with passengers through all their onboard services – delivering a truly connected end-to-end passenger journey,” said Jeff Sare, president of Intelsat’s Commercial Aviation. “The hybrid service offering further allows the global airline community to plan their suite of next-generation onboard services with confidence – not only ensuring a future-proofed passenger inflight connectivity experience, but also the implementation of a connected airline digitalization strategy.”

“This is a watershed moment for the inflight connectivity market, and we’re excited to work together with Intelsat to bring our multi-orbit solution to commercial aviation. We’re committed to delivering the most differentiated and innovative solution for airlines,” said Ben Griffin, OneWeb vice president, Mobility Services. “We are proving that, through the power of partnership, a superior suite of multi-orbit capabilities can be offered to better serve the growing connectivity needs of the commercial aviation industry, delivering the highest value coupled with the lowest risk.”

Eutelsat and OneWeb merger looks to GEO + LEO satellite opportunities

 Eutelsat Communications and OneWeb agreed to merge.  The deal combines Eutelsat's fleet of 36 GEO satellites with OneWeb’s constellation of 648 Low Earth Orbit satellites, of which 428 are currently in orbit.The companies say their operations are highly complementary and that a clear roadmap has been designed to develop over time a complementary GEO/LEO service including a common platform, hybrid terminals and a fully mutualized network...

Dell'Oro: SaaS-based network security revenue to surpass $60 billion

Demand for network security–which includes email security, firewall, security service edge (SSE), secure web gateway (SWG), and web application firewall (WAF) technologies–is expected to remain healthy over the next five years as solid enterprise investment in cloud applications and hybrid work drive the need for greater security and offset macro-economic headwinds, according to a new report from Dell'Oro Group.

“Compared with our previous forecast in January 2022, the world is a different place with stubbornly high inflation and a regional war in Europe, and as a result, we incrementally lowered our near-term network security revenue projections,” said Mauricio Sanchez, Research Director, Network Security, and SASE & SD-WAN at Dell’Oro Group. “However, we see the near-term softness to be transitory and offset by stronger growth in later years as enterprises remain focused on securing the shift to being cloud-first and mobile-friendly,” added Sanchez.

Additional highlights from Network Security July 2022 5-Year Forecast Report:

  • SSE market revenue to experience a compounded annual growth rate (CAGR) of nearly 30 percent from 2021 to 2026. Secure Web Gateway (SWG) and Cloud Access Security Broker (CASB) are expected to remain the most significant revenue components over the five-year forecast horizon, but Zero Trust Network Access (ZTNA) and Firewall-as-a-Service (FaaS) are estimated to flourish at a faster rate.
  • Firewall market is expected to remain the largest network security segment by revenue and is forecasted to grow at an 8 percent CAGR over the forecast horizon.

Sierra Wireless reported Q2 revenue of $188.0 million, up 41%

Citing strong demand and the realization of investments in inventory to combat the ongoing supply chain tightness, Sierra Wireless reported Q2 revenue of $188.0 million, an increase of 41.5% compared to the second quarter of 2021.

Gross margin was 33.6% as compared to 34.8% in the second quarter of 2021. In the second quarter of 2022, gross margin was impacted by product mix and higher component costs.

Operating expenses were $44.6 million compared to $55.6 million in the second quarter of 2021. Second quarter expenses included a $9.2 million gain on sale of our Omnilink offender monitoring business. Adjusted EBITDA was $22.4 million compared to $4.3 million in the second quarter of 2021.

Some highlights:

  • Connectivity, software, and services revenue was $31.4 million, a decrease of 10.7% compared to the second quarter of 2021. This decrease was primarily due to the sale of the Omnilink offender monitoring business and the impact of the shutdown of 2G/3G networks in the United States on the company's home security business.
  • Monthly recurring revenue ("MRR")2, 3 was $9.1 million in June 2022 compared to $9.3 million in June 2021.
  • Revenue from IoT Solutions increased 54.7% to $139.7 million as compared to $90.3 million in the second quarter of 2021. The increase was primarily due to strong demand for connected devices globally and the realization of investments in inventory to combat the ongoing supply chain tightness. Increase in demand includes acceleration in IoT modules deployment across  industrial customers. IoT Solutions gross margin was 30.1%, compared to 27.0% in the second quarter of 2021. The increase in gross margin was primarily due to price increases, product mix, and improved absorption of fixed costs from increased volume.
  • Revenue from Enterprise Solutions increased 13.6% to $48.3 million as compared to $42.5 million in the second quarter of 2021. The increase was primarily due to strong demand for routers in our key industrial and public safety verticals, partially offset by decline in connectivity, software, and services revenue resulting from the sale of the Omnilink offender monitoring business and the impact of the shutdown of 2G/3G networks in the United States on the company's home security business. Enterprise Solutions gross margin was 43.9% as compared to 51.3% in the second quarter of 2021. The decrease in gross margin was primarily due to product mix and higher component costs.

Semtech to acquire Sierra Wireless for LoRa + Cellular IoT

Semtech agreed to acquire Sierra Wireless, a leading supplier of Internet of Things (IoT) solutions, for US$31 per share in an all-cash transaction representing a total enterprise value of approximately US$1.2 billion.Semtech said the deal will significantly expand its addressable market and is expected to approximately double Semtech’s annual revenue and create a strong and diverse portfolio of connectivity solutions for the growing IoT market. Significantly,...

NETGEAR to Acquire Sierra Wireless' AirCard Business

NETGEAR agreed to acquire Sierra Wireless' AirCard business, including customer relationships, certain intellectual property, inventory and fixed assets, for approximately $138 million in cash. Sierra Wireless expects to net about $100 million from the asset sale, after related liabilities, taxes, expenses, and funds held in escrow. Sierra Wireless' AirCard business supplies a range of data cards, dongles, and hotspots for 3G and 4G networks....

Sierra Wireless to sell its Automotive Embedded Module business

Sierra Wireless will divest its Shenzhen, China-based automotive embedded module product line for US$165 million in cash. The purchaser, Rolling Wireless (H.K.) Limited, is a consortium led by Fibocom Wireless Inc. of Shenzhen. The divested product line is part of the company’s Embedded Broadband reporting segment. Sierra Wireless will exit automotive applications but will continue to invest in other product lines in its Embedded Broadband segment,...

VIAVI hits revenue of $335.3 million, up 7.8% year-over-year

VIAVI reported net revenue of $335.3 million  for its fourth fiscal quarter ended July 2, 2022.. GAAP net income was $16.5 million, or $0.07 per share. Non-GAAP net income was $55.8 million, or $0.24 per share.

"I am pleased with VIAVI's performance in the fiscal year 2022. We generated record revenue, close to $1.3 billion, and record operating profit, exceeding our strategic plan goals that we set out three years ago before the pandemic, global supply chain issues, and inflationary pressures," said Oleg Khaykin, VIAVI's President and Chief Executive Officer.

Khaykin added, "I am also pleased with VIAVI's performance and momentum during the fiscal Q4 2022, resulting in record revenue and record fourth quarter profitability driven by Fiber-to-the-Home deployment, 400GbE network and data center upgrades, and the investments in O-RAN network expansions."

Americas, Asia-Pacific and EMEA customers represented 38.7%, 38.7% and 22.6%, respectively, of total net revenue for the quarter ended July 2, 2022.

As of July 2, 2022, the Company held $564.9 million in total cash, short-term restricted cash and short-term investments.