Wednesday, July 24, 2024

NTIA Advances $42.45 billion BEAD Program

The National Telecommunications and Information Administration (NTIA) has approved the initial proposals from Utah, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands for the Broadband Equity, Access, and Deployment (BEAD) program. This program is a key component of the Biden-Harris Administration’s “Internet for All” initiative, aimed at closing the digital divide by providing affordable, reliable high-speed internet to all Americans.

With this approval, Utah, the Northern Mariana Islands, and the U.S. Virgin Islands can now access significant funding to begin their BEAD program implementations. This funding will support the deployment or upgrade of high-speed internet networks to ensure universal access within these regions. Utah is set to receive over $317 million, the Northern Mariana Islands over $80 million, and the U.S. Virgin Islands over $27 million. This funding is part of the broader $42.45 billion BEAD program authorized by President Biden’s Bipartisan Infrastructure Law.

Key Points
  • BEAD Program: A $42.45 billion initiative under the Biden-Harris Administration’s “Internet for All” initiative.
  • Funding Allocation in this round: Utah - over $317 million, Northern Mariana Islands - over $80 million, U.S. Virgin Islands - over $27 million.
  • Approval Status: Enables regions to begin implementation of high-speed internet projects.
  • Next Steps: States and territories to move from planning to action, with one year to submit Final Proposals.
  • Eligible Uses: Deployment of high-speed networks, internet adoption, training, and workforce development.
  • NTIA Leadership: Continued support and rolling approvals for all 56 states and territories.
  • Administration Goals: Ensure universal high-speed internet access across the U.S.
The approval marks a significant milestone in the NTIA’s efforts to advance digital equity and expand internet access nationwide. As these regions begin to implement their plans, the NTIA will continue to oversee and support the progress, aiming for comprehensive connectivity across the country.

NTIA launches $1.25 Billion Digital Equity Act Competitive Program

The National Telecommunications and Information Administration (NTIA) hasunveiled nearly $1 billion in funding aimed at ensuring communities have access to necessary devices and digital skills, regardless of background or circumstances. This funding marks the first opportunity under the Digital Equity Act’s $1.25 billion Competitive Grant Program and is a pivotal part of President Biden’s “Internet for All” initiative within his Investing in America agenda.


Various organizations, including city and county governments, Native entities, certain nonprofits, educational agencies, and workforce development organizations, can apply competitively for this funding. NTIA encourages proposals from partnerships capable of administering substantial resources and serving diverse populations. U.S. Territories have a separate set-aside and can apply until October 22, with general applications due by September 23. The NTIA expects to start making awards by Winter 2024 on a rolling basis.

Key Points:
Funding Available: Nearly $1 billion.
Program: Digital Equity Act’s $1.25 billion Competitive Grant Program.
Initiative: Part of President Biden’s “Internet for All” initiative.
Eligible Applicants: City and county governments, Native entities, nonprofits, educational agencies, workforce development organizations, and U.S. Territories.
Application Deadlines: September 23 for general applications, October 22 for U.S. Territories.
Award Timeline: Expected to begin by Winter 2024 on a rolling basis.
Objective: Ensure digital access and skills for all communities.
Encouraged Proposals: Broad partnerships addressing diverse populations.
Impact: Enhance digital skills and access to connected devices for underserved communities.
Administration Comments: Emphasis on digital equity for all, facilitated by the Bipartisan Infrastructure Law.

FBA President & CEO Gary Bolton offered the following statement of support: “FBA applauds the Department of Commerce’s National Telecommunications and Information Administration (NTIA) on another significant step forward in connecting all Americans to fiber broadband. This morning, NTIA announced the availability of nearly $1 billion in funding to be used for digital equity programs. Equity cannot be achieved by infrastructure deployments alone; it also requires the tools and skills to make full use of the benefits of fiber connectivity. We encourage our membership and beyond to participate in this opportunity that will help close the digital divide once and for all.”


https://www.internetforall.gov/program/digital-equity-competitive-grant-program

T-Mobile and KKR’s JV extends fiber broadband reach across the U.S.

T-Mobile and KKR announced a joint venture partnership to acquire Metronet, enhancing T-Mobile’s digital transformation and expanding its network capacity. As part of the deal, the joint venture will also acquire Oak Hill Capital’s existing stake in Metronet, with Oak Hill and Metronet founder John Cinelli retaining minority positions. T-Mobile is expected to invest approximately $4.9 billion for a 50% equity stake in the JV and 100% of Metronet’s residential fiber operations, with the transaction slated to close in 2025.

Metronet, the fastest-growing pure-play fiber company in the U.S., currently reaches over 2 million homes and businesses across 17 states. Post-acquisition, Metronet will transition its residential fiber retail operations and customers to T-Mobile, becoming a wholesale services provider. T-Mobile will handle customer acquisition and support, leveraging its retail, marketing, and service expertise while expanding fiber broadband services. Metronet will focus on network engineering, deployment, and customer installation, aiming to pass 6.5 million homes by 2030. This deal will enhance T-Mobile’s fiber footprint without requiring additional capital contributions to the JV.

The partnership also benefits from KKR’s extensivefiber network investments. Since KKR’s initial investment in Metronet in 2021, the company has rapidly grown its infrastructure and subscriber base. This JV aligns with KKR’s global infrastructure strategy, which has managed over $61 billion in assets, investing in leading fiber-to-the-home providers worldwide. The new JV is complementary to T-Mobile’s 5G Home Internet offering, which serves over 5 million households and businesses, addressing the increasing demand for high-speed and reliable broadband services.

  • JV Partners: T-Mobile and KKR to acquire Metronet.
  • Financial Investment: T-Mobile to invest $4.9 billion for a 50% equity stake.
  • Metronet’s Reach: Over 2 million homes and businesses across 17 states.
  • Network Expansion: Metronet aims to pass 6.5 million homes by 2030.
  • Operational Focus: T-Mobile to manage customer operations; Metronet to handle network deployment.
  • KKR’s Experience: Over $61 billion in managed infrastructure assets globally.
  • Complementary Services: JV enhances T-Mobile’s 5G Home Internet and fiber partnerships.
  • Closing Timeline: Transaction expected to close in 2025.


AT&T Q2 Results Highlight Fiber and 5G Growth

AT&T reported strong second-quarter results for 2024, showcasing progress in its 5G and fiber initiatives. The company highlighted durable and profitable customer growth in both sectors, with increasing revenues from Mobility services and broadband. Despite a slight decrease in overall revenues compared to the previous year, AT&T maintained its full-year financial guidance, demonstrating confidence in its ongoing strategies.

In Q2, AT&T achieved revenues of $29.8 billion, with diluted earnings per share (EPS) of $0.49 and adjusted EPS of $0.57. Operating income was reported at $5.8 billion, with adjusted operating income reaching $6.3 billion. Net income stood at $3.9 billion, while adjusted EBITDA was $11.3 billion. Capital expenditures were $4.4 billion, contributing to a free cash flow of $4.6 billion, which marked an increase from the previous year. These financial outcomes reflect AT&T’s solid performance and strategic investments in 5G and fiber infrastructure.




Key Points:


Revenues: $29.8 billion for Q2 2024.

EPS: $0.49 (diluted); $0.57 (adjusted).

Operating Income: $5.8 billion; $6.3 billion (adjusted).

Net Income: $3.9 billion.

Adjusted EBITDA: $11.3 billion.

Cash from Operating Activities: $9.1 billion.

Capital Expenditures: $4.4 billion compared to $4.3 billion for Q2 last year

Free Cash Flow: $4.6 billion.

Fiber Growth: 239,000 net adds, continuing 18 consecutive quarters of over 200,000 net adds.

Mobility Service Revenues: Increased by 3.4% year over year to $16.3 billion.

Consumer Broadband Revenues: Grew by 7% year over year to $2.7 billion.


AT&T’s CEO, John Stankey, emphasized the company’s investment-led strategy, positioning AT&T as a leader in converged connectivity. With nearly four out of every ten AT&T Fiber households also subscribing to AT&T wireless services, the company aims to deepen customer relationships and expand its subscriber base. Looking forward, AT&T reaffirms its guidance for 2024, anticipating continued growth in wireless service revenue, broadband revenue, and adjusted EBITDA.

https://about.att.com/story/2024/q2-earnings.html

Nokia Achieves World-First in Full Duplex Wireless Transmission

 Nokia announced a significant breakthrough in wireless communications, achieving the first-ever full duplex transmission for wireless backhaul and fronthaul. This advancement is expected to play a crucial role in the evolution towards 6G and the development of spectrum beyond 100GHz. Operators worldwide have expressed the need for greater spectral efficiency, and Nokia’s innovative approach addresses this demand by enabling simultaneous transmission and reception of signals over a single channel, doubling the capacity of traditional frequency division duplexing (FDD) systems.

Using the D-Band spectrum (130 to 175 GHz) and Nokia’s Wavence Ultra-Broadband Transceiver (UBT) radio, this pioneering technology has demonstrated an impressive 10+10 Gbps capacity—10 Gbps for both uplink and downlink—over a single 2GHz channel. Full duplex technology not only enhances spectral efficiency by 100% but also offers several benefits over traditional line of sight (LoS) MIMO systems, including increased energy efficiency, significant cost savings, and simplified deployment.

Key Points

  • Milestone: First-ever full duplex wireless transmission for fixed point-to-point links.
  • Spectrum Used: D-Band (130 to 175 GHz).
  • Technology: Nokia’s Wavence Ultra-Broadband Transceiver (UBT) radio.
  • Capacity: 10+10 Gbps over a single 2GHz channel.
  • Spectral Efficiency: Enhanced by 100% compared to current systems.
  • Energy Efficiency: 100% increase.
  • Cost Savings: Up to 50% reduction in hardware requirements.
  • Deployment: Simplified, requiring only a single part number for all use cases.
  • Impact on Operators: More efficient spectrum use, reduced energy and capital expenditures, and simplified operations.
  • Impact on Subscribers: More reliable and faster services supporting next-gen wireless applications towards 6G.

The announcement is discussed in a blog posting by Giuseppe Targia, who heads Nokia Microwave & Space and Defense. Please see:

https://www.nokia.com/blog/worlds-first-full-duplex-wireless-transport-unveiled/?did=D00000007649&utm_campaign=MN_blogs&utm_source=twitter&utm_medium=organic&utm_term=f94ee205-caa0-4f54-8f74-f64f2240a726

Microsoft expands capacity with Lumen's Private Connectivity Fabric

Lumen Technologies and Microsoft announced a new strategic partnership leveraging the Microsoft Cloud to enhance Lumen’s digital transformation and significantly expand Microsoft’s network capacity. 

Specifically, Microsoft has chosen Lumen as a strategic supplier to bolster its network infrastructure. Lumen’s Private Connectivity Fabric will provide dedicated access to Lumen’s extensive fiber network, installation of new fiber routes, and integration of Lumen’s digital services. This AI-ready infrastructure aims to enhance connectivity, performance, and speed between Microsoft’s datacenters, supporting the next generation of Microsoft platform applications globally.

Microsoft said Lumen’s network expansion will deliver the necessary capacity and stability to support the growing data demands of AI applications. Erin Chapple, Corporate Vice President of Azure Core Product and Design at Microsoft, emphasized the transformative impact of AI on businesses and the essential role of a robust network infrastructure. She highlighted Lumen’s capabilities in supporting Azure’s mission to provide a reliable, scalable platform for diverse customer workloads, including general purpose, mission-critical, cloud-native, high-performance computing, and AI applications.

Lumen’s President and CEO, Kate Johnson, echoed this sentiment, stating that a powerful network infrastructure is crucial for the future of AI-driven innovation and growth. 

Key Points

  • Strategic Partnership: Lumen and Microsoft collaborate to enhance network capacity for AI.
  • Lumen’s Infrastructure: Private Connectivity Fabric to provide dedicated access to Lumen’s fiber network and new digital services.
  • Datacenter Support: Improved connectivity, performance, and speed for Microsoft’s datacenters.
  • AI and Network Infrastructure: Essential for supporting AI applications and future innovations.

CrowdStrike cites errors with its QA process

CrowdStrike published a preliminary Post Incident Review (PIR) regarding the incident that occurred on July 19, 2024, where a content configuration update for the Falcon sensor caused a Windows system crash (BSOD). The issue arose from a Rapid Response Content update intended to enhance telemetry on novel threat techniques. This update, however, led to unexpected system failures on Windows hosts running sensor version 7.11 and above during a brief period.

The problematic update was released at 04:09 UTC and impacted systems until 05:27 UTC when it was reverted. Only Windows hosts were affected; Mac and Linux systems remained unaffected. The issue stemmed from an undetected error in the Rapid Response Content update. The error caused an out-of-bounds memory read, leading to the crash. CrowdStrike’s extensive QA processes and staged sensor rollout procedures were unable to prevent this issue. Enhancements in testing and deployment strategies are being implemented to prevent future occurrences.

Key Points:

Incident Date and Time: July 19, 2024, from 04:09 to 05:27 UTC.

Affected Systems: Windows hosts running Falcon sensor version 7.11 and above.

Cause: Error in Rapid Response Content update.

Impact: Windows system crashes (BSOD).

Reversion: Update reverted at 05:27 UTC.

QA and Rollout: Extensive testing failed to catch the issue.

Prevention: Enhanced testing and deployment strategies.

Platform Stability: Improvements in error handling and validation.

Customer Control: Greater control over content update deployments.

Transparency: Detailed release notes for content updates.

Dell'Oro: RAN Forecast Revised Downward

 Radio Access Network (RAN) market conditions remain challenging for the broader mobile infrastructure and RAN markets, according to a new report from Dell'Oro Group. Following the 40 to 50 percent increase between 2017 and 2021, the RAN market is now declining, and these trends are expected to prevail throughout the forecast period (2024-2028). However, the pace of the decline should moderate somewhat after 2024.

"It is not a surprise that there is rain after sunshine," said Stefan Pongratz, Vice President for RAN market research at Dell'Oro Group. "In addition to MBB-based coverage-related challenges, this disconnect between mobile data traffic growth and the capacity boost provided by the mid-band, taken together with continued monetization uncertainty, is clearly weighing on the market," continued Pongratz.

Additional highlights from the Mobile RAN 5-Year July 2024 Forecast Report:

  • Worldwide RAN revenues are projected to decline at a 2 percent CAGR over the next five years, as continued 5G investments will be offset by rapidly declining LTE revenues.
  • The Asia Pacific region is expected to lead the decline, while easier comparisons following steep contractions in 2023 will improve the growth prospects in the North American region. Even with some recovery, North American RAN revenues are expected to remain significantly lower relative to the peak in 2022.
  • 5G-Advanced positions remain unchanged. The technology will play an essential role in the broader 5G journey. However, 5G-Advanced is not expected to fuel another major capex cycle. Instead, operators will gradually transition their spending from 5G towards 5G-Advanced within their confined capex budgets.
  • RAN segments that are expected to grow over the next five years include 5G NR, FWA, mmWave, Open RAN, vRAN, private wireless, and small cells.

https://www.delloro.com/market-research/telecommunications-infrastructure/mobile-radio-access-network/

Alphawave Semi Rides AI Wave with Record Q2 Bookings

 Alphawave Semi reported strong Q2 2024 results, with bookings reaching $107.4 million, up 27% year-over-year. The company attributed its success largely attributed to the growing demand for chiplet-based designs in AI and data center applications. Alphawave secured 14 new design wins in Q2, including a significant deal with a major hyperscaler for its 112G and UCIe-based solutions.

CEO Tony Pialis highlighted the company's leadership in advanced connectivity solutions, particularly in chiplets for AI and data infrastructure markets. Alphawave now boasts seven designs leveraging advanced packaging and chiplet-based designs on cutting-edge nodes, with most expected to enter production in 2025. The company is also on track to ship its first connectivity silicon products by the end of 2024, with potential sales exceeding $300 million over multiple years to a leading hyperscaler.

Key points:

  • Q2 2024 bookings reached $107.4 million, up 27% year-over-year
  • Secured 14 new design wins, including deals with hyperscalers and leading semiconductor companies
  • Seven designs now leverage advanced packaging and chiplet-based designs
  • First connectivity silicon products on schedule for shipment by end of 2024
  • Potential $300 million in sales over multiple years for first silicon products
  • Amended debt facility to provide more flexibility for future growth
  • Company expects to have nearly half a billion dollars in backlog by year-end

Ribbon posts Q2 revenue of $193 million

 Ribbon Communications reported Q2 2024 revenue of $193 million, compared to $211 for the second quarter of 2023 and $180 million for the first quarter of 2024. First half 2024 GAAP Loss from Operations improved $26 million year over year to ($15 million), and Non-GAAP Adjusted EBITDA improved $13 million, or 65%, to $33 million. GAAP and Non-GAAP Gross Margin for the second quarter improved 260 and 240 basis points year over year, respectively.

"Earnings increased significantly in the first half of 2024 with Adjusted EBITDA increasing 65% year over year despite lower sales. The improvement in profitability was driven by higher gross margins and lower operating expenses year over year. Revenue in the second quarter was impacted by a large U.S. Federal deal that was delayed to the third quarter. Sales were also lower as we suspended product shipments into Eastern Europe due to the extended war in Ukraine and increased complexities of operating in the region," stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications.

Mr. McClelland added, "We continue to project a strong second half of 2024 as we ramp the recently announced Verizon Voice Network modernization program and anticipate strong growth in several other areas such as Enterprise, U.S. Rural Broadband, Europe, and India. Recent changes in the competitive landscape also present an opportunity for further share expansion. However, we have adjusted our full year 2024 guidance slightly to reflect a more conservative outlook for the Eastern European region for the rest of the year."