Thursday, August 25, 2022

T-Mobile US and SpaceX plan satellite-to-cellular service

T-Mobile US entered a technology partnership with SpaceX that will create a new network, broadcast from Starlink’s satellites using T-Mobile’s mid-band PCS spectrum nationwide. This will enable satellite-to-phone connectivity using existing phones.

Coverage will initially be over the United States, its territories and parts of the open ocean. T-Mobile US is inviting other global mobile operators to join in a reciprocal coverage agreement.

In a press event at the SpaceX Starbase in Texas, Elon Musk described the technology as a very difficult engineering challenge in part because the Starlink satellites will need to be able discertain individual cell phone signal from their low-earth-orbits. No changes are anticipated for the handsets.

The technology, which is currently working in the labs, will require specialized, very large (25m2) phased-array antennas on the next generation of Starlink satellites.  

Elon said each ground cell zone would be quite large and might have 2-4 Mbps of shared bandwidth, enough for basic messaging, apps and some voice.

“We’ve always thought differently about what it means to keep customers connected, and that’s why we’re working with the best to deliver coverage above and beyond anything customers have ever seen before,” said Mike Sievert, CEO of T-Mobile. “More than just a groundbreaking alliance, this represents two industry-shaking innovators challenging the old ways of doing things to create something entirely new that will further connect customers and scare competitors.”

“The important thing about this is that it means there are no dead zones anywhere in the world for your cell phone,” said SpaceX Chief Engineer Elon Musk. “We’re incredibly excited to do this with T-Mobile.”

CHIPS and Science Act funding processes get underway

 President Biden signed an Executive Order to implement the semiconductor funding in the bipartisan CHIPS and Science Act of 2022.

The order establishes an interagency CHIPS Implementation Steering Council, which will be  co-chaired by National Economic Director Brian Deese, National Security Advisor Jake Sullivan, and the Acting Director of the Office of Science and Technology Policy, Alondra Nelson. 

The order also  establishes six primary priorities to guide implementation across the federal government:

  • Protect taxpayer dollars. The CHIPS program will include rigorous review of applications along with robust compliance and accountability requirements to ensure taxpayer funds are protected and spent wisely.
  • Meet economic and national security needs. The CHIPS program must address economic and national security risks by building domestic capacity that reduces U.S. reliance on vulnerable or overly concentrated foreign production for both leading-edge and mature microelectronics, and increasing United States economic productivity and competitiveness. U.S. long-term economic and national security requires a sustainable, competitive domestic industry.
  • Ensure long-term leadership in the sector. The CHIPS program will establish a dynamic, collaborative network for semiconductor research and innovation to enable long-term U.S. leadership in the industries of the future. The program will support a diversity of technologies and applications along many stages of product and process development.
  • Strengthen and expand regional manufacturing and innovation clusters. Long-term competitiveness requires large economies of scale and investments across the supply chain. Regional clusters containing manufacturing facilities, suppliers, basic and translational research, and workforce programs, along with supporting infrastructure, will be the foundation for a competitive industry. The CHIPS program will facilitate the expansion, creation and coordination of semiconductor manufacturing and innovation clusters that benefit many companies. 
  • Catalyze private sector investment. A successful CHIPS program will respond to market signals, fill market gaps and reduce investment risk to attract significant private capital. The role of government in the CHIPS program is to shift financial incentives to maximize large-scale private investment in production, break-through technologies, and workers. The CHIPS program will encourage new ecosystem partnerships that reduce risk, build on U.S. strengths, and facilitate such investments. 
  • Generate benefits for a broad range of stakeholders and communities. A successful CHIPS program will create benefits for startups, workers, socially and economically disadvantaged (SEDI) businesses, including minority-owned, veteran-owned and women-owned businesses and rural businesses, universities and colleges, and state and local economies, in addition to supporting semiconductor companies. The CHIPS program will encourage linkages to underserved regions and populations to draw in new participants to the semiconductor ecosystem.

Biden signs CHIPS and Science Act

by James E. CarrollPresident Biden signed the CHIPS and Science Act of 2022, which aims to onshore domestic manufacturing of semiconductors and to substantially increase government funding for science and technology development programs, including the networking and telecommunications fields. The legislation provides $54.2 billion in total appropriations for CHIPS and Public Wireless Supply Chain Innovation (also known as ORAN), and $82.5 billion...

Nokia and Google test 5G network slicing on Android

Nokia and Google completed a round of testing of slice selection functionality on 4G/5G networks using UE Route Selection Policy (URSP) technology and Google Pixel 6 (Pro) phones running Android 13. 

The goal is to enable 5G network slicing services and enhance the customer application experience of devices with Android 13.

Specifically, URSP capabilities enable a smartphone to connect to multiple network slices simultaneously via different enterprise and consumer applications depending on a subscriber’s specific requirements.

The trial, which took place at Nokia’s network slicing development center in Tampere, Finland, also included LTE-5G New Radio slice interworking functionality. This will enable operators to maximally utilize existing network assets such as spectrum and coverage. The trial was conducted using Nokia’s end-to-end 4G/5G network slicing product portfolio across RAN-transport-core as well as related control and management systems. The trial included 5G network slice selection and connectivity based on enterprise and consumer application categories as well as 5G NR-LTE slice interworking functionalities.

Ari Kynäslahti, Head of Strategy and Technology at Nokia Mobile Networks, said: “New application-based URSP slicing solutions widen operator’s 5G network business opportunities. We are excited to develop and test new standards-based URSP technologies with Android that will ensure that our customers can provide leading-edge enterprise and consumer services using Android devices and Nokia’s 4G/5G networks.”

Marvell sees supply constraints ease

Marvell Technology reported revenue for the second quarter of fiscal 2023 of $1.517 billion, consistent with the midpoint of the company's guidance provided on May 26, 2022. 

GAAP net income for the second quarter of fiscal 2023 was $4 million, or $0.01 per diluted share. Non-GAAP net income for the second quarter of fiscal 2023 was $486 million, or $0.57 per diluted share. Cash flow from operations for the second quarter was $331.5 million.

"In the second quarter of fiscal 2023, we delivered record revenue of $1.52 billion, which grew 41 percent year over year and 5 percent sequentially. This was the 9th straight quarter of sequential revenue growth, and we are guiding for growth to continue in the third quarter, as we expand our leadership in data infrastructure," said Matt Murphy, Marvell's President and CEO. "Looking ahead, we expect sequential revenue growth to accelerate in the fourth quarter as supply constraints begin to ease. We believe we are well positioned to continue to benefit from our favorable end market exposure tied to strong secular growth trends and significant expected upcoming revenue contributions from a number of Marvell-specific product ramps."

Dell's server and networking sales rise 16% yoy

Dell Technologies reported record Q2 revenue of $26.4 billion, up 9%, driven by growth across Client Solutions Group (CSG) and Infrastructure Solutions Group (ISG). Operating income was $1.3 billion, up 25%, representing 4.8% of revenue, and non-GAAP operating income was $2 billion, up 4%, representing 7.4% of revenue. Net income from continuing operations was $506 million and non-GAAP net income was $1.3 billion. Diluted earnings per share was $0.68, and non-GAAP diluted earnings per share was $1.68.

  • Client Solutions Group delivered second quarter record revenue of $15.5 billion, up 9% year-over-year. Commercial revenue was $12.1 billion, a 15% increase year-over-year, and Consumer revenue was $3.3 billion, down 9% year-over-year. 
  • Infrastructure Solutions Group delivered record second quarter revenue of $9.5 billion, up 12%. Storage revenue was $4.3 billion, up 6%, with growth across the portfolio and demand strength in high-end storage and marquee mid-range product PowerStore, which has now grown every quarter since its launch. Servers and networking revenue was $5.2 billion, up 16% year-over-year.  

"We delivered strong CSG and ISG growth and profitability – with revenue up 12% and 9% respectively – although we observed more cautious customer behavior as the quarter progressed," said Chuck Whitten, co-chief operating officer, Dell Technologies. "Customers continue to prioritize advanced technology solutions to compete and succeed in the years ahead, and we are confident in our long-term opportunities."

VMware's Q2 revenue rose 6% to $3.34 billion

VMware reported revenue for the second quarter of $3.34 billion, an increase of 6% from the second quarter of fiscal 2022. GAAP net income for the second quarter was $347 million, or $0.82 per diluted share, down 16% per diluted share compared to $411 million, or $0.97 per diluted share, for the second quarter of fiscal 2022. Non-GAAP net income for the second quarter was $697 million, or $1.64 per diluted share, down 6% per diluted share compared to $739 million, or $1.75 per diluted share, for the second quarter of fiscal 2022.

“We are pleased with our performance in Q2. Our momentum continues next week at VMware Explore where we will showcase new innovative offerings while also highlighting how we are helping customers continue to transform their businesses,” said Raghu Raghuram, CEO, VMware. “We remain committed to helping organizations unlock the full potential of multi-cloud.”

“Our Q2 financial results reflect the continued commitment of the entire VMware team to accelerate innovation for our customers as they move to a multi-cloud environment,” said Zane Rowe, executive vice president and CFO, VMware. “Investments in our Subscription and SaaS offerings helped contribute to ARR growth of 24% year-over-year.”

  • The combination of subscription and SaaS and license revenue was $1.74 billion for the second quarter, an increase of 15% from the second quarter of fiscal 2022.
  • Subscription and SaaS revenue for the second quarter was $943 million, an increase of 22% year-over-year, constituting 28% of total revenue for the quarter.
  • Subscription and SaaS ARR for the second quarter was $3.89 billion, an increase of 24% year-over-year.

Broadcom launches its $61 billion bid for VMware

 Broadcom unveiled plans to acquire all of the outstanding shares of VMware in a cash-and-stock transaction that values VMware at approximately $61 billion, based on the closing price of Broadcom common stock on May 25, 2022. In addition, Broadcom will assume $8 billion of VMware net debt. The deal has the support of VMware's Board of Directors, along with Michael Dell and Silver Lake, which own 40.2% and 10% of VMware shares outstanding,The...

Singtel to sell a 3.3% stake in Airtel back to Bharti Telecom

Singtel will sell a 3.3% direct stake in regional associate Airtel to Bharti Telecom, a joint venture between Bharti Enterprises and Singtel,

The sale will unlock approximately S$2.25 billion as part of the Singtel Group’s capital recycling strategy. After this transaction, the Singtel Group is expected to own an effective stake of 29.7%, which is estimated to be worth S$22 billion. This comprises a 19.2% indirect stake through Bharti Telecom and a 10.5% direct stake.

Mr Arthur Lang, Singtel's Group Chief Financial Officer, said, "As long-term strategic investors and partners, the value of our stakes in our regional associates has risen substantially over the years but has not been properly reflected in our share price. This sale in Airtel will be our first ever and seeks to address this gap by illuminating the sizeable value of our holdings in Airtel. It is also part of our capital management approach to take monetisation opportunities that allow us to increase our return on invested capital and enhance total shareholder returns. With this transaction, we will raise over S$2 billion which will help to fully meet the Group’s needs for 5G and growth initiatives in the next few years, and put us in a strong position to grow our dividends in a sustainable way in line with our dividend policy.”

ZEDEDA builds its executive team

ZEDEDA, a start-up based in San Jose, California, focused on edge orchestration, announced the following changes to its executive team:

  • Erik Nordmark, a co-founder of the company, has been promoted to Chief Technology Officer.
  • Paul Campaniello has been named Vice President of Marketing.
  • Michael Maxey has been named VP of Business Development. 
  • Raghu Vatte moves into the VP of Product Management and Customer Success role. 

“Edge computing is increasingly important within organizations, and these new executive hires will strongly position us to meet the needs of the biggest customers, helping us to build out our internal teams and provide even more value to our customers and partners,” said Said Ouissal, founder and CEO of ZEDEDA. “Edge computing is accelerating, and our open framework and ecosystem approach is the ideal solution for businesses looking to take advantage of the benefits of edge computing.”

ZEDEDA raises $26 million for edge orchestration

ZEDEDA, a start-up based in San Jose, California, raised $26 million in Series B funding for its edge orchestration solution.ZEDEDA provides a unified orchestration experience across hardware, software, networks and cloud that delivers visibility, control and security. The company says revenue is up 7x year-over-year, while at the same time, its number of nodes under management has risen by 4x. The funding round attracted a range of new and...

LF Edge announces Project EVE Seed Code

LF Edge, an umbrella organization within the Linux Foundation that aims to establish an open, interoperable framework for edge computing independent of hardware, silicon, cloud, or operating system, announced Project Edge Virtualization Engine (EVE) seed code contributed by LF Edge founding member ZEDEDA. With Project EVE, edge gateways and devices run a variety of edge workloads simultaneously, decoupling application management from the underlying...