Intel's Q3 data center revenue dropped 27% yoy

Intel reported Q3 2022 revenue of $15.3 billion, down 20% from $19.2 billion a year earlier. Gross margin dropped to 42.6% from 56.0% a year earlier, while earnings per share fell 85% yoy to $0.25 from $1.67.

“Despite the worsening economic conditions, we delivered solid results and made significant progress with our product and process execution during the quarter,” said Pat Gelsinger, Intel CEO. “To position ourselves for this business cycle, we are aggressively addressing costs and driving efficiencies across the business to accelerate our IDM 2.0 flywheel for the digital future.”

 “As we usher in the next phase of IDM 2.0, we are focused on embracing an internal foundry model to allow our manufacturing group and business units to be more agile, make better decisions and establish a leadership cost structure,” said David Zinsner, Intel CFO. “We remain committed to the strategy and long-term financial model communicated at our Investor Meeting.”

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AWS sales hit $20.5 billion, growth rate now at 27% yoy

In its quarterly financial statement, Amazon reported AWS sales of $20.5 billion, a increase of 27% year-over-year (28% excluding changes in foreign exchange rates). AWS segment operating income was $5.4 billion, compared with operating income of $4.9 billion in third quarter 2021.

An interesting note -- AWS has supplied Snowball devices, which are ruggedized compute and storage hardware, to Ukraine to help secure, store, and transfer over 10 petabytes (10 million gigabytes) of essential data to the cloud. These Snowball devices were the foundation for the effort to preserve Ukraine’s data—including state registries, education records, and other essential databases—which are critical in rebuilding the country. 

https://ir.aboutamazon.com/overview/default.aspx

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LightCounting: Optical components forecast

The transceiver market is on track for another year of strong (14%) revenue growth in 2022, after increasing by 10% in 2021, and 17% in 2020, according to an updated Optical Components forecast from LightCounting. The report predicts growth will slow to 4% in 2023, prior to recovering in 2024-2025.

Some highlights:

• Strong sales of DWDM and Ethernet optics accounted for most of the market growth in 2021 and these segments are projected to lead the growth in 2022-2027.
• Sales of optical interconnects, mostly Active Optical Cables (AOCs), will also increase at double digit rates over the next 5 years. 
• PON sales for FTTx networks will remain steady, as the China market ends its 10G cycle and North America and Europe ramp up 10G PON deployments, driven by government funding programs. 
• 25G and 50G PON provide new growth later in the forecast period. Wireless fronthaul is one area of weakness, since 5G network deployments in China are reaching completion. This segment will return to growth in 2026-2027 with the onset of 6G deployments.

https://www.lightcounting.com/newsletter/october-2022-market-forecast-151

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T-Mobile US adds 394K postpaid accounts in Q3, raises guidance

T-Mobile US announced additions of 394,00 postpaid net account additions in Q3 2022, a new record for the company. Postpaid phone churn was a low of 0.88%. The company also reported 578,000 High Speed Internet net customer additions. As a result, T-Mobile US raised its 2022 guidance for the third consecutive quarter. 

"We’ve always said our aspiration was to be the first and only provider to offer customers both the best network and the best value without having to sacrifice one for the other — and based on another set of standout customer and financial results for Q3, it's clear we’re delivering on that promise," said Mike Sievert, CEO of T-Mobile. "On the heels of our highest ever postpaid account net additions and industry-leading postpaid and broadband customer growth, we are raising guidance for the third time this year. Our Un-carrier playbook continues to win in this ever-changing competitive and macro-economic climate and our momentum is only getting stronger.”

Highlights

• Service revenues of $15.4 billion grew 4% year-over-year, including industry-leading Postpaid service revenue growth of 7%
• Net income of $508 million and diluted earnings per share (“EPS”) of $0.40 decreased year-over-year primarily due to merger-related costs and loss related to the anticipated sale of the wireline business amounting to a combined impact of $1.8 billion, net of tax, or $1.41 per share
• Postpaid net account additions of 394 thousand increased 126 thousand year-over-year.
• Postpaid net customer additions of 1.6 million increased 368 thousand year-over-year.
• Postpaid phone net customer additions of 854 thousand increased 181 thousand year-over-year, leading the industry for the first time since Q1 2021. Postpaid phone churn of 0.88% improved by 8 basis points year-over-year.
• Prepaid net customer additions of 105 thousand increased 39 thousand year-over-year. Prepaid churn of 2.88% improved by 2 basis points year-over-year.
• High Speed Internet net customer additions of 578 thousand were a record high, and T-Mobile ended the quarter with over 2.1 million High Speed Internet customers.
• Total net customer additions of 1.7 million increased 407 thousand year-over-year and the total customer count increased to a record high of nearly 112 million.

https://investor.t-mobile.com/events-and-presentations/events/event-details/2022/T-Mobile-Q3-2022-Earnings-Call/default.aspx

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Versa secures $120 million for its SASE platform

Versa Networks secured additional financing of $120 million for its single-vendor SASE platform, which delivers AI/ML-powered SSE and SD-WAN. 

The pre-IPO round was led by funds and accounts managed by BlackRock, Inc. Silicon Valley Bank (SVB) also participated in the funding.

“As the leader in SASE, the fastest growing security and networking category, and executing on SASE services for years, Versa is the only solution proven to deliver the industry’s leading and differentiated architecture for high performance and security,” said Kelly Ahuja, CEO of Versa Networks. “This funding will allow us to expand our go-to-market and accelerate new innovations that will further expand the market opportunity for us as a company.”

“We are excited to support the Versa team and its vision to drive innovation across cloud, data and network security,” said Matt Singer, Managing Director, BlackRock. “SASE represents an important and fast-growing market that is at the core of organizations’ digital transformation and Versa, with its unified, single-code based architecture, is well positioned to deliver mission critical value to its customers.”

https://www.versa-networks.com

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Stonepeak takes 36% in American Tower’s U.S. data centers

Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, invested an additional $570.0 million, which, together with its initial $2.5 billion investment in August 2022, on a fully converted basis and based on the currently outstanding equity, represents an approximately 36% ownership interest in American Tower’s U.S. data center business. 

The conversion is expected to occur four years from the date of the initial closing in August 2022. The upsize transaction was completed on October 20, 2022. The upsize investment comprises both common equity and mandatorily convertible preferred equity, on the same terms and valuation as the initial investment. Stonepeak’s investment is part of its core infrastructure strategy.

https://investors.coresite.com/news-releases/news-release-details/stonepeak-upsizes-invesment-american-towers-data-center-business

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XL Axiata signs Huawei for "5G City" project

XL Axiata signed a collaboration agreement with Huawei to develop "5G City", with the aim to realize a smart city through 5G networks, predict the evolution of technology, operate network intelligently, and improve user experience.

XL Axiata and Huawei are working together on following scope: green 5G with simplified site solution, multi antenna radio modules, cost-effective rural network solution for islands population coverage, etc.

"Together with Huawei, XL Axiata continues to explore and implement more technological breakthroughs to build high-quality networks, while implementing green information and communication technology towards 5G", said I Gede Darmayusa, CTO of XL Axiata, "This project is one of the steps for XL Axiata to explore 5G services and become one of the major operators in the world. XL Axiata aims to further develop 5G in Bandung and Bali to launch the 5G City project, which can greatly affect economic development for the whole country."

Wei Wei, XL Account Director of Huawei Indonesia said "We are glad to have this opportunity to work with XL Axiata to develop a high quality 5G network in Bandung and Bali. Our aim is to help XL Axiata lead the industry in the development of 5G networks. Huawei and XL Axiata are both pursuing innovation and success. I believe this will be another successful project in Indonesia telecommunications."

https://www.huawei.com/en/news/2022/10/5gcity-green5g-ultra-wideband-multi-antenna

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Comcast's Xfinity Mobile reaches 5 million after 5 years

Comcast's Xfinity Mobile MVNO service has surpassed five million customer lines after five years on the market

“We set out to build a different kind of mobile service designed for the way people use their phones today – with the Internet at the center of the experience. Our goal is simple - keep our Internet customers happy with a mobile service that offers incredible value; attract new customers who want a great connectivity experience inside and away from the home; and build a profitable business that has a long runway for growth,” said Dave Watson, CEO, Comcast Cable. “We couldn’t be prouder of the exceptional mobile service we built with Xfinity Mobile and the impact it has had today with five million customer lines and counting.”

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Aviat wins E-ban radio contract with Bharti Airtel

Bharti Airtel has contracted Aviat Networksfor wireless multiband radio solutions.

Airtel will deploy Aviat's all outdoor WTM 4800 E-Band and Multi-Band solutions to significantly expand the capacity of their microwave backhaul network.

Aviat's Multi-Band vendor agnostic feature enables traffic aggregation from multiple links which in turn improves network congestion and gives better speeds to customers. Aviat Networks will also undertake maintenance and deployment as part of the roll out. Airtel will deploy unique dual channel E-Band radio to augment its existing installed microwave network as well as new greenfield links in support of accelerated 5G network build out.

Speaking about the agreement, Randeep Sekhon, Airtel's Chief Technology Officer said, "We are delighted to partner with Aviat Networks. Their cutting-edge E-Band and Multi-Band radio solutions are a good fit with our network capabilities, which combined with their strengths in delivery and supply chain will enable Airtel deliver seamless 5G experience to customers across India in record time."

Pete Smith, CEO Aviat Networks said, "We are delighted to be able to support Airtel's 5G service deployment. India is one of the fastest and largest growing 5G markets in the world and Aviat's product capabilities will significantly lower the total cost of ownership and our delivery infrastructure will enable faster roll out."

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