Singtel pioneers National Quantum-Safe Network

 Singtel has unveiled Southeast Asia’s first National Quantum-Safe Network Plus (NQSN+), designed to shield enterprises from emerging quantum threats. Singtel's pioneering initiative offers a customized program for businesses to trial the technology before full-scale adoption. Singtel’s Quantum-Safe Network (QSN) supports a wide array of network and security devices, enabling seamless integration and enhanced connectivity for enterprises looking to secure their communications.

Appointed by the Infocomm Media Development Authority last year, Singtel has developed Singapore’s first NQSN+ to bolster the nation's resilience against quantum threats over the next decade. The advanced network extends quantum-safe security to various new use cases, including identity, mobility, and authentication services, providing comprehensive protection for business-critical data.

Singtel is also launching a three-phase pilot program to support enterprises in adopting quantum-safe technologies. This program includes workshops to build awareness, integration testbeds to validate interoperability, and live trials to assess network behavior and operational aspects. Singtel will collaborate closely with enterprises to develop tailored quantum-safe use cases, ensuring a risk-free and smooth integration of these advanced technologies.

Key Points:

• Quantum-Safe Network Launch: Southeast Asia’s first NQSN+ to protect enterprises from quantum threats.
• Custom Trial Program: Singtel offers a program for enterprises to trial quantum-safe technology before adoption.
• Enhanced Security: The network supports various devices and extends security to new applications like identity and authentication.
• Three-Phase Pilot Program: Includes awareness workshops, integration testbeds, and live trials for seamless technology adoption.
• Tailored Use Cases: Singtel will develop industry-specific quantum-safe use cases in collaboration with enterprises.

Mr Ng Tian Chong, Chief Executive Officer, Singtel Singapore said, “Singtel has always played a central role in our nation’s security. Though quantum computing may be in its nascent stages, it’s fast gaining velocity across critical information sectors, especially banking, healthcare and government services, and we want to ensure Singapore is ready for it. That’s why we specially-curated this programme to equip enterprises with the relevant skills and knowledge so they can take the necessary steps to future-proof their critical networks against potential quantum threats. We encourage all enterprises who are keen to bolster their digital resilience to reach out to us so they can be prepared for the quantum age.”

https://www.singtel.com/business/campaign/quantumsafenetwork.

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Verizon Leverages AI to Prevent Fiber Cuts

Verizon has introduced an innovative program to safeguard its extensive fiber infrastructure from accidental cuts during construction and excavation activities. Each year, thousands of fiber lines are damaged, leading to significant connectivity disruptions for customers. To address this, Verizon is deploying proprietary technology that uses artificial intelligence (AI) and machine learning to proactively identify and prevent potential fiber damage. This marks an industry first in leveraging advanced tech to reduce the risks associated with digging activities.

Verizon’s AI-driven solution processes over ten million 811 dig requests annually, identifying high-risk excavations based on historical data, current activity at the site, and the track record of the excavator involved. By taking preventive measures, such as enhancing communication with excavators, Verizon aims to significantly reduce the number of fiber cuts each year. Integrated with Verizon’s 811 system, this initiative has the potential to prevent hundreds of fiber cuts annually, maintaining uninterrupted connectivity for customers and minimizing costly repairs.

• AI Deployment: Verizon uses AI and machine learning to assess over 10 million dig requests annually for potential fiber cut risks.
• Proactive Prevention: The system identifies high-risk excavations and implements preventive measures to protect underground fiber.
• Impact: The initiative could prevent hundreds of fiber cuts annually, reducing connectivity disruptions.
• National Call Before You Dig Day: Verizon emphasizes the importance of calling 811 before any digging project to avoid damaging underground utilities.

https://www.verizon.com/about/news/verizon-uses-ai-machine-learning-prevent-fiber-cuts

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Cogent Sees Lingering Covid Impact in Central Business Districts

Cogent Communications reported mixed results for Q2 2024, with service revenue rising to $260.4 million, an 8.6% increase compared to the same period in 2023, but a 2.2% decline from the previous quarter. The company’s performance was influenced by the ongoing effects of the COVID-19 pandemic on its corporate network operations, particularly in central business districts where remote work policies have led to decreased office occupancy and slower new sales to corporate clients. Despite some positive trends in certain areas of the U.S., Cogent continues to face challenges in fully recovering its corporate revenue growth.

Cogent's acquisition of Sprint has also played a significant role in its recent financial outcomes. The company incurred $12.4 million in costs related to the acquisition during Q2 2024, affecting its EBITDA, which adjusted for these costs, was $106.2 million—down from $115.0 million in Q1 2024. Additionally, the company’s EBITDA margin improved slightly to 10.4% in Q2 2024 from 6.9% in Q1 2024, signaling some operational efficiency gains despite the ongoing integration of Sprint’s assets.

The pandemic's residual effects continue to linger, particularly in terms of corporate customer turnover and fewer new tenant opportunities. However, Cogent is cautiously optimistic about the future, as the gradual return to office spaces and the integration of new applications that support remote work environments could eventually boost its service revenues and corporate sales.

Key Points:

• Service Revenue: $260.4 million in Q2 2024, up 8.6% YoY but down 2.2% QoQ.
• EBITDA: Adjusted EBITDA was $106.2 million in Q2 2024, down from $115.0 million in Q1 2024.
• Pandemic Impact: Continued slow recovery in corporate network sales due to lingering effects of remote work policies.
• Sprint Acquisition Costs: $12.4 million in Q2 2024, impacting overall profitability.
• Dividend Increase: Quarterly dividend increased to $0.985 per share, marking the 48th consecutive increase.

Cogent acquires the legacy Sprint fiber network

Monday, May 01, 2023    

Cogent Communications completed its previously announced acquisition of T-Mobile's Wireline Business, which is the legacy Sprint U.S. long-haul network. The deal greatly expands Cogent's network footprint and enables it enter the U.S. market for dark fiber and wavelength services.Cogent paid $1 as the purchase price, subject to customary adjustments for net debt and net working capital. In addition, Cogent will provide T-Mobile with IP transit services...

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Swisscom Broadcast develops Drones-as-a-Service with Nokia

 Nokia and Swisscom Broadcast have announced the deployment of the largest Drones-as-a-Service network in Switzerland. This project will utilize 300 Nokia Drone-in-a-Box units to enhance public safety and industrial operations, demonstrating Nokia's capabilities in digital infrastructure and mission-critical edge computing.

• Deployment Scale: Nationwide network with 300 Drone-in-a-Box units.
• Safety and Efficiency: Enhances safety and operational efficiency for public safety and industrial use cases.
• Advanced Use Cases: Supports drone automation, BVLOS operations, and 3GPP technologies.
• Public Safety: Optimizes emergency response and infrastructure inspection, improving first responders' situational awareness.
• Industry Applications: Facilitates inspections of hard-to-reach infrastructure, enhancing worker safety.
• Seamless Integration: Easy onboarding for industrial applications with edge computing needs.
• Service Portfolio: Includes expertise, compliance, data collection, and analysis from Nokia and Swisscom Broadcast.
• Regulatory Compliance: Operations will adhere to spectrum and aviation safety regulations.

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Dell'Oro: AI Data Centers Drive Ethernet Adapter and Smart NIC Market

A new report from Dell'Oro Group projects the Ethernet Adapter and Smart NIC market to exceed $16 billion by 2028. We raised our market outlook significantly because of strong requirements for back-end Ethernet server connectivity to support the scale out of AI server clusters.

“The advent of generative AI applications is driving the demand to interconnect accelerated servers with a back-end Ethernet network necessary for the training of large language models. This is a new market opportunity for Ethernet adapters, with significantly higher growth compared to the traditional front-end Ethernet adapter market”, said Baron Fung, Senior Research Director at Dell’Oro Group. “While the back-end network market today is predominantly InfiniBand-based today, Ethernet-based solutions are forecast for broad adoption as customers seek a multi-vendor solution,” added Fung.

Additional highlights from the Ethernet Adapter and Smart NIC 5-Year July 2024 Forecast Report:

• The total Ethernet Adapter and Smart NIC market, which includes server connectivity for both front-end and back-end networks, is projected to grow at a 27 percent compound annual growth rate by 2028.
• Server access speed for back-end networks will be at least one generation ahead compared to that of front-end networks to maintain pace with compressed GPU accelerator roadmaps.
• Smart NICs, which include DPUs and IPUs, are positioned for high growth to support the strong demands of back-end Ethernet-based networks.

 https://www.delloro.com/news/ethernet-adapter-and-smart-nic-market-to-exceed-16-billion-by-2028/

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Viavi Reports Fiscal 2024 Revenue Decline and Restructuring Efforts

Viavi Solutions reported a notable dip in performance for the fourth quarter and fiscal year 2024, highlighting the challenging market conditions and the company's ongoing restructuring efforts. The company experienced a 4.4% year-over-year decrease in fourth-quarter net revenue, totaling $252.0 million, and a 9.6% drop in fiscal year revenue, reaching $1.0 billion. GAAP operating margins were also significantly impacted, declining by 680 basis points year-over-year in Q4 and 530 basis points for the full year. Additionally, GAAP earnings per share fell to $(0.10) in Q4 and $(0.12) for the fiscal year, indicating substantial financial pressure.

In response to these challenges, Viavi has initiated a restructuring and workforce reduction plan, expected to affect approximately 6% of its global workforce. This plan aims to improve operational efficiencies and align the company's workforce with current business needs. Viavi estimates this will result in $25 million in annualized cost savings by the end of fiscal 2025. Despite the difficult year, CEO Oleg Khaykin expressed optimism about a gradual recovery in the second half of fiscal 2025, particularly in the Network and Service Enablement (NSE) segment.

Fourth Quarter Performance:

• Net revenue: $252.0 million, down 4.4% YoY
• GAAP operating margin: (2.3)%, down 680 bps YoY
• GAAP EPS: $(0.10), down $0.10 YoY
• Fiscal Year 2024 Performance:
• Net revenue: $1.0 billion, down 9.6% YoY
• GAAP operating margin: 2.1%, down 530 bps YoY
• GAAP EPS: $(0.12), down 209.1% YoY

Restructuring Efforts:

• Workforce reduction plan affecting 6% of global workforce
• Estimated $25 million in annualized cost savings by fiscal 2025
• Business Outlook:
• Q1 fiscal 2025 net revenue expected between $235 million and $245 million
• Non-GAAP EPS expected between $0.05 and $0.07

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Nokia Self-Certifies Fiber Product for Buy America Build America

Nokia has announced that it is the first technology vendor to self-certify its U.S.-manufactured fiber products, ensuring they meet the requirements outlined in the newly established Buy America Build America (BABA) compliance and self-certification guidelines for the Broadband Equity, Access, and Deployment (BEAD) program. With this certification, BEAD applicants can now obtain a Certification Letter from Nokia to demonstrate BABA compliance, facilitating their access to the program's $42.45 billion in available funding.

To participate in the BEAD program, operators and infrastructure players must use U.S.-manufactured fiber broadband equipment, as mandated by federal regulations. The National Telecommunications and Information Administration (NTIA) has created a self-certification framework to help manufacturers prove their compliance, adding them to a Department of Commerce-managed list. This process is designed to prevent fraudulent claims, requiring company officers to certify their products under penalty of fine or imprisonment and provide BABA certification letters for audit purposes. Nokia's certified products include:

• Nokia FX and MF OLT modular product lines
• Nokia SF-8M sealed OLT
• XS-220X-A ONT

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ADTRAN's Q2 Highlights Growth in Fiber Networking

ADTRAN has announced its financial results for the second quarter of 2024, reporting revenue of $226.0 million. The company experienced growth in its customer base across the U.S. and Europe, driven by increased adoption of its latest fiber networking solutions. While the company saw improvements in key operating metrics, challenges remained in profitability. The GAAP gross margin stood at 36.1%, while the non-GAAP gross margin was higher at 41.9%. However, the company reported a GAAP net loss of $49.9 million, translating to a GAAP diluted loss per share of $0.63.

Looking ahead, ADTRAN Holdings provided guidance for the third quarter of 2024, with expected revenue ranging between $215 million and $235 million. The company anticipates a non-GAAP operating margin between -1% and +3%, reflecting ongoing efforts to improve profitability despite a challenging market environment.

• Revenue: $226.0 million in Q2 2024.
• Gross Margin: 36.1% GAAP, 41.9% Non-GAAP.
• Operating Margin: -17.0% GAAP, 0.7% Non-GAAP.
• Net Loss: $49.9 million GAAP, $18.8 million Non-GAAP.
• Earnings Per Share: GAAP loss of $0.63 per share, Non-GAAP loss of $0.24 per share.
• Q3 2024 Outlook: Revenue expected between $215 million and $235 million; Non-GAAP operating margin projected between -1% and +3%.

ADTRAN Holdings’ Chairman and Chief Executive Officer Tom Stanton stated, "We had a solid second quarter, during which we saw improvements across all our major operating metrics, including profitability and working capital. During the quarter, we saw growth in our customer base across the U.S. and Europe as customers continue to adopt our latest fiber networking solutions”.

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