Tuesday, January 31, 2023

Dell'Oro: Sustained broadband spending through 2027

Sales of PON equipment for fiber-to-the-home deployments, cable broadband access equipment, and fixed wireless CPE will all increase from 2022 to 2027, as service providers continue to expand their fiber and DOCSIS 4.0 networks, while expanding the types of services they deliver to residential subscribers, according to a recent report from Dell'Oro Group.

"Service providers around the world continue to transition their broadband networks to fiber and retire their existing copper and DSL networks," said Jeff Heynen, Vice President at Dell'Oro Group. "With markets expected to become more competitive, broadband providers will have to continue spending in order to differentiate their services not only by increasing advertised speeds, but also improving latency and expanding managed Wi-Fi services," added Heynen.

Additional highlights from the Broadband Access & Home Networking 5-Year January 2023 Forecast Report:

  • PON equipment revenue is expected to grow from $11.0 B in 2022 to $13.2 B in 2027, driven largely by XGS-PON deployments in North America, EMEA, and CALA.
  • Revenue for Cable Distributed Access Equipment (Virtual CCAP, Remote PHY Devices, Remote MACPHY Devices, and Remote OLTs) is expected to reach $1.5 B by 2027, as operators ramp their DOCSIS 4.0 and fiber deployments.
  • Revenue for Fixed Wireless CPE is expected to reach $2.2 B by 2027, led by shipments of 5G sub-6GHz and 5G Millimeter Wave units.

Colt connects to new Barcelona Cable Landing Station

Colt Technology Services (Colt) is the first carrier to connect to AFT-IX's new Barcelona Cable Landing Station (Barcelona CLS). 

AFR-IX Telecom is already using Colt’s network in the African market to provide an internet service to African operators and customers to connect them to European data centers via Colt’s routes.

Colt operates in more than 220 cities in over 30 countries and connects more than 1,000 data centres and over 31,000 connected buildings in the largest business centres in Europe, Asia and North America. Colt’s network in Spain and Portugal is already serving Lisbon, Bilbao, Madrid and Barcelona, and has 13 connection points to data centers in Barcelona.

Colt will be able to offer, from Barcelona CLS, services like  data centre interconnection (Data Centre Interconnect), inter-network traffic exchange (IP Transit) or dark fibre (non-active fibre optic circuits that enable the capacity of customers to be expanded in times of need).

Colt will enable Barcelona CLS to connect to Europe’s major digital hubs (Paris, London, Frankfurt) and provide an express terrestrial route to other key regional cable landing stations such as Lisbon, Bilbao and Marseilles, installing new submarine cables and capacity in the US, Africa, the Middle East and Asia.

Barcelona Cable Landing Station offers alternative to Marseille

A new Barcelona Cable Landing Station is expected to come into operation the first quarter of 2022 with the aim of being the digital port of reference in the Mediterranean. The facility, which is an initiative of AFR-IX Telecom, is the first international submarine cable landing station in Catalonia. Currently, Marseille is the primary landing point for most submarine fibre-optic cables of the Mediterranean. Organizers of the Barcelona Cable...

Juniper reports strong Q4 momentum, sales up 11% yoy

Juniper Networks reported Q4 2022 revenue of $1,448.8 million, an increase of 11% year-over-year, and an increase of 2% sequentially. GAAP operating margin was 14.0%, an increase from 11.8% in the fourth quarter of 2021, and an increase from 10.6% in the third quarter of 2022.

“We experienced strong business momentum during the December quarter, including a second consecutive quarter of double-digit year-over-year revenue growth, a record performance by our enterprise business, and our second-highest cloud revenue quarter,” said Juniper’s CEO, Rami Rahim. “Our experience-first networking strategy, focused on leveraging AI and cloud-delivered automation to improve customer operations and the end-user experience, continues to resonate across the markets we serve. We believe our differentiated solutions, along with our go-to-market investments and strong backlog, should position us to deliver another year of solid revenue growth in 2023.”

“In addition to record revenue results, we achieved strong profitability during the December quarter, as non-GAAP gross and operating margin both exceeded the mid-point of our forecast and enabled us to beat the mid-point of our non-GAAP EPS outlook,” said Juniper’s CFO, Ken Miller. “We remain focused on delivering profitable growth and are confident in our ability to expand our non-GAAP operating margin by at least 100 basis points in 2023.”

On an investor conference call, Juniper executives noted a "normalization of buying patterns" amongst Cloud and Service Provider customers, following a a year in which many of these accounts placed multiple quarters of demand in advance of knowing requirements to account for extended lead times.

During the fourth quarter, total product orders declined more than 20% year-over-year. Adjusted orders declined single digits year-over-year, versus difficult comparison but grew sequentially. Juniper ended the year with backlog of more than $2.0 billion, which is down sequentially, but up on a year-over-year basis.

  • Enterprise had record revenue and was the largest vertical in the fourth quarter, increasing 32% year-over-year and 16% sequentially, 14% year-over-year and increased 1% sequentially. 
  • Service Provider declined 8% year-over-year and 10% seq revenue grew 30% year-over-year and 19% sequent grew 50% year-over-year and 13% sequentially. 
  • Automated WAN was down 4% year-over-year and 10% sequentially.
  • Total Software and Related Services revenue was $305 million, an increase of 26% year-over-year.
  • Annual Recurring Revenue (ARR3) grew 43% year-over-year. Juniper exited the year with $294 million in ARR.
  • Total Security revenue was $169 million, up 5% year-over-year and up 21% sequentially.
  • In reviewing  top 10 customers for the quarter, six were Cloud, three were Service Provider, and one was Enterprise. Our top 10 customers accounted for 34% of our total revenue as compared to 33% in Q4'21.


Red Hat Enterprise Linux now on Oracle Cloud Infrastructure

Red Hat and Oracle announced a multi-stage alliance to offer Red Hat Enterprise Linux on Oracle Cloud Infrastructure (OCI) as a supported operating system. 

With this strategic collaboration, certified configurations of OCI flexible virtual machines can now run Red Hat Enterprise Linux, and customers can also migrate existing workloads already running on Red Hat Enterprise Linux to Red Hat Enterprise Linux on OCI with greater confidence. OCI flexible virtual machines can scale in increments as small as a single CPU to optimize price-performance and minimize wasted resources. Customers can also contact both Red Hat and Oracle support to help resolve potential issues, with an expanded transparent, joint support agreement.

Red Hat Enterprise Linux forms the backbone of Red Hat’s hybrid cloud technology portfolio, which includes Red Hat OpenShift. Red Hat Ansible Automation Platform and additional technologies to support the modern cloud-native stack. With this collaboration, joint customers of Red Hat and Oracle can now create a foundation for future-forward computing deployments on Red Hat Enterprise Linux while still retaining the value of existing IT investments.

Ciena upgrades Honotua subsea cable in French Polynesia

French Polynesian telecom operator ONATi, a subsidiary of the OPT French Polynesia Group, has selected Intelia and Ciena to increase the capacity of the Honotua international submarine cable to 300 Gbps. The last stage of operations was successfully carried out in October 2022 thanks to the engagement and expertise of the ONATi, Intelia and Ciena teams.

The Honotua international cable was upgraded using Ciena’s GeoMesh Solution powered by the 6500 Packet-Optical Platform and WaveLogic Ai technology providing 300 Gbps of capacity on a cable system supporting an upgrade path to 5 Tbps of total capacity. The Honotua international cable is a 4,500km submarine communication system that interconnects several islands of French Polynesia from Tahiti to Hawaii. The Honotua international cable system was deployed in 2009, and it is owned and operated by the OPT French Polynesia Group to supply connectivity to more than 220,000 mobile subscribers, 45,000 fixed internet customers and 16,000 audio-visual multimedia users.

Intelia served as the local integrator. 

Orange Belgium and Telenet sign wholesale agreements

Orange Belgium, which serves over three million customers, and Telenet have signed two commercial fixed wholesale agreements, which entry into force is subject to the completion of the transaction related to the acquisition of 75% minus one share of VOO by Orange Belgium. 

The agreements will provide access to each other’s fixed networks for a 15-year period and cover both current Hybrid Fiber Coaxial and future Fiber to the Home technologies in both network areas. Orange Belgium believes these agreements will foster investment, benefit the customer and competition in the Belgian telecom market. Orange Belgium firstly secures an access to Telenet’s Hybrid Fiber Coaxial network and to its future Fiber to the Home network for 15 years, a key enabler to strengthen its nationwide convergent strategy. Secondly, Orange Belgium will provide Telenet wholesale access to VOO and Brutélé’s Hybrid Fiber Coaxial network and to its future Fiber to the Home network in the regions of Wallonia and Brussels-Capital. It will also secure Telenet as a wholesale customer, increasing network penetration and return on modernization investments.

Xavier Pichon, CEO of Orange Belgium, commented: "It is a major step forward in the deployment of our leading nationwide multi-gigabit strategy. With the acquisition of VOO, we have an ambitious investment plan to upgrade the network and to provide multi-gigabit connectivity to our customers. The agreement on the Telenet network, will complement our ability to provide a Hybrid Fiber Coaxial and Fiber to the Home multi-gigabit connectivity value proposition to our customers wherever they live. We also welcome Telenet as a wholesale customer on our future VOO network. These agreements will foster competition and network investments nationwide”.


Orange Group appoints CEOs for France and Spain

Jean-François Fallacher has been appointed CEO of Orange France effective April 3, replacing Fabienne Dulac, who is moving to a new role after eight years at the helm of Orange France. Fabienne Dulac will remain on the Executive Committee and will contribute to the deployment of the upcoming strategic plan.

Ludovic Pech, the current Chief Financial Officer of Orange Middle East & Africa, has been appointed CEO of Orange Spain, replacing Jean-François Fallacher who will remain a member of Orange Spain's Board of Directors.