Sunday, May 13, 2018

Trump instructs Department of Commerce to save ZTE

In a tweet on Sunday morning, President Trump said he has instructed the Department of Commerce to find a way to get ZTE back into business fast because "too many jobs in China" would be lost. Trump's tweet also references President Xi of China.

https://twitter.com/realDonaldTrump/status/995680316458262533

FWD: The death of ZTE



Zhongxing Telecommunication Equipment Corporation (ZTE), one of the world's largest suppliers of network infrastructure products, informed the Hong Kong Stock Exchange that "the major operating activities of the Company have ceased".  If the notice means what we think it means, then ZTE is dead. It took only 3 weeks from the day that the U.S. Commerce Department' Bureau of Industry and Security (BIS) issued its order prohibiting companies...


ZTE: Major operating activities have ceased



ZTE stated that "the major operating activities of the Company have ceased" due to the export ban imposed on it by the U.S. Commerce Department' Bureau of Industry and Security (BIS). The announcement was made in a regulatory filing with the Hong Kong Stock Exchange. Trading of the company's shares have been suspended since April 16th. ZTE also said that it is actively communicating with the U.S. government in order to secure a reversal of the...


Three weeks in, ZTE appeals to U.S. Commerce Dept as shares remain suspended



ZTE has appealed to the U.S. Commerce Department’s Bureau of Industry and Security (BIS) to lift the ban on the export of U.S. products to the company, according to a regulatory filing made by ZTE to the Hong Kong exchange. There is no word on whether the appeal will be heard or acted upon by BIS. Meanwhile, trading of ZTE's shares on the Hong Kong market remain suspended since April 16th. ZTE posted a Q1 growth rate of 12% prior to export ban...

GSMA: Central America falls behind in mobile development

Mobile broadband development in Central America is lagging behind the rest of Latin America, putting the region’s future economic development at risk, according to the new report ‘Assessing the impact of market structure on innovation and quality: Driving mobile broadband in Central America’ released by the GSMA.

The 52-page report examines the development of mobile broadband in six countries (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) and finds that while 4G networks are available to 35 per cent of the population in Central America, the technology still only accounts for around 5 per cent of all mobile connections in the region, a sixth of that seen in South America.

“Closing the gap in 4G adoption in Central America requires urgent policy reform,” said Sebastián Cabello, Head of Latin America, GSMA. “This report underscores the need for governments and regulators to act quickly in reforming policies that will encourage investment and innovation and enable operators to deliver high-quality mobile broadband services to consumers and businesses across the region.”

The GSMA report can be downloaded here



Interview - Disaggregating and Virtualizing the RAN

The xRAN Forum is a carrier-led initiative aiming to apply the principles of virtualization, openness and standardization to one area of networking that has remained stubbornly closed and proprietary -- the radio access network (RAN) and, in particular, the critical segment that connects a base station unit to the antennas. Recently, I sat down with Dr. Sachin Katti, Professor in the Electrical Engineering and Computer Science departments at Stanford University and Director of the xRAN Forum, to find out what this is all about.

Jim Carroll, OND: Welcome Professor Katti. So let's talk about xRAN. It's a new initiative. Could you introduce it for us?

Dr. Sachin Katti, Director of xRAN Forum: Sure. xRAN is a little less than two years old. It was founded in late 2016 by me along with AT&T, Deutsche Telecom and SK Telecom -- and it's grown significantly since then.  We now are up to around ten operators and at least 20 vendor companies so it's been growing quite a bit the last year and a half.

JC: So why did xRAN come about?

SK:  Some history about how all of happened... I was actually at Stanford as my role as a faculty here at Stanford collaborating with both AT&T and Deutsche Telecom on something we called soft-RAN, which stood for software-defined radio access network. The research really was around how do you take radio access networks, which historically have been very tightly integrated and coupled with hardware, and make them more virtualized - to disaggregate the infrastructure so that you have more modular components, and also defined interfaces between the different common components. I think we all realized at that point that to really have an impact, we need to take this out of the research lab and get the industry and the cross-industry ecosystem to join forces and make this happen in reality.

That's the context behind how xRAN was born. The focus is on how do we define a disaggregated architecture for the RAN. Specifically, how do you take what's called the eNodeB base station and deconstruct the software stuff that's running on the base station such that you have modular components with open interfaces between them that allows for interoperability, so that you could truly have a multi-vendor deployment. And two, it also has a lot more programmability so that an operator could customize it for their own needs, enabling new applications and new service much more easily without having to go through a vendor every single time. I think it was really meant so that you can try all of those aspects and that's how it got started.

JC: Okay. Is there a short mission statement?  

SK: Sure. The mission statement for xRAN is to build an open virtualized, disaggregated radio access network architecture that opens standardized interfaces between all of these components, and to be able to build all of these components in a virtualized fashion on commodity hardware wherever possible.

JC:  In terms of the use cases, why would carriers need to virtualize their RAN, especially when they have other network slicing paradigms under development?

SK: It's great that you bring up network slice actually. Network slicing is one of the trialing use cases and the way to think about this is, in the future, everyone expects to have network slices with very different connectivity needs for enabling different kinds of applications. So you might have a slice for cars that have very different bandwidth and latency characteristics compared to a slice for IOT traffic, which is a bit more delay tolerant for example.

JC: And those are slices in a virtual EPC? Is that right?

SK:  Those are slices that need to be end-to-end. It can't just be the EPC because ultimately the SLAs you can give for the kind of connectivity you can deliver, is ultimately going to be dictated by what happens on the access. So, eventually, a slice has to be end-to-end and the challenge was if an operator, for example, wants to define new slices then how do they program the radio access network to deliver that SLA, to deliver that connectivity that that slice needs.

In the EPC there was a lot of progress on what are those interfaces to enable such slicing but there was not similar progress that happened in the RAN. How do you program the base station, and how do you program the access network itself to deliver such slicing capability? So that's actually one of the driving use cases that's in there since the start of xRAN. Another big use case, and I'm not sure whether we should call it a use case, but just a need, is around having a multi-vendor deployment. Historically, if you look at radio access network deployments, they're a single vendor. So, if you take a U.S. operator, for example, they literally divide up their markets into an Ericsson market or a Nokia market or whatever. And the understanding is everything in that market, from the base station to the antenna to the backhaul, everything comes from one vendor. They really cannot mix and match components from different vendors because there haven't been many interoperable interfaces, so the other big need or requirement that is coming all this is interoperability in a multivendor environment that they want to get to.

JC: How about infrastructure sharing? I mean we see that the tower companies are now growing by leaps and bounds and many carriers thinking that maybe it's no longer strategically important to own the tower and so share that tower, and they might share the backhaul as well. 

SK: It will actually help. It will actually enable that kind of sharing at an even more deeper level, because if you have an infrastructure that is virtualized and is running on more commodity hardware in a virtualized fashion then it becomes easier for a tower company to set up the compute substrate and their underlying backhaul substrate and then provide virtual infrastructure slices to each operator to operate on top of. And so instead of actually just physically separating -- right now they are basically renting space on the top right but instead if you could just the same underlying compute substrate and the same backhaul infrastructure as well a fronthaul infrastructure and virtually slice it and run multiple networks on top, it actually makes it possible to share on the infrastructure even more. So virtualization is almost a prerequisite to any of the sharing of infrastructure.

JC: Tell us about the newly released, xRAN fronthaul specification version 1.0. What is the body of work it builds on?

SK: Sure, let me step back and just talk about all the standardization efforts, and then I'll answer the question. xRAN actually has three big different working groups. One is around fronthaul, which refers to the link between the radio head and that baseband unit. This is the transport that's actually carrying the data between the baseline unit and the radio transmission and, in the reverse direction, when you receive something from the mobile unit.  So that's one aspect. The second one is around the control plane and user plane separation in the base station. Historically, the control plane and the user plane are tightly coupled. A significant working group effort in xRAN right now is how do you decouple those and define standardized interfaces between a control plane and a user plane.  And the last working group is trying to define what are the interfaces between the control plane of the radio access network and orchestration systems like ONAP. So those are three main focus areas.

Our first specification, which describes the fronthaul interfaces, was released this month. So, what went on there?  The problem that we solved concerns closed interfaces. Today if you bought a base station you also have to buy the antenna from the same vendor. That's it. For example, if you bought an Ericsson base station you have to buy an antenna from Ericsson as well. There are very few compatible antenna systems, but with 5G, and even with 4G, there's been a lot of innovation on the antenna side. There are innovators developing massive MIMO systems. These have lots of antennas and can significantly increase the capacity of the RAN. Many start-ups that are trying to do this, but they're struggling to get any traction because they cannot sell their antennas and connect it to an existing vendor's baseband unit. So, a critical requirement that operators are pushing was how do we make it such that this fronthaul specification is truly interoperable, making it possible to mix and match. You could take a small vendor's radio head and antenna and connect it with an existing well-established vendor's baseband unit -- that was the underlying requirement. What the new fronthaul work is truly trying to accomplish is to make sure that this interface is very clearly specified such that you do not need tight integration between the baseband unit and the radio head unit.

This fronthaul work came about initially with Verizon, AT&T and Deutsche Telekom driving it. Over the past year, we have had multiple operators joining the initiative, including NTT DoCoMo,  and several vendors they brought along including Nokia. Samsung, Mavenir, and a bunch of other companies, all coming together to write the specification and contribute IP towards it.

JC: Interesting, so you have support from those existing vendors who would seem to have a lot to lose if this disaggregation occurred disfavorably to them.

SK: Yes, we do. Current xRAN members include all or the bigger vendors, such as Nokia and Samsung, especially on the radio side. Cisco is a member which is more often on the orchestration side and there are several other big vendors that are part of this effort. And yeah, they have been quite supportive.

The xRAN Forum is an operator-driven body. The way we set up a new working group or project is that operators come in and tell us what their needs are, what their use cases are, and if we see enough consistency, when multiple operators share the same need or share the same use case, that leads to the start of the new working group. The operators often end up bringing their vendors along by saying we need this, "we are gonna drive it through the xRAN consortium and we need you to come and participate, otherwise you'll be left out." That's typically how vendors are forced to open up.

JC: Okay, interesting, so let's talk a little bit about the timelines and how this could play out. You talked about plugging into an existing baseband unit or base station unit so I guess there is a backward compatibility aspect?

SK: No, we are not expecting operators to build entirely new networks. The first fronthaul specification is meant both for 4G and 5G. The fronthaul is actually independent of the underlying air interface so it can work under 4G networks. On the baseband side, it does require a software update. It does require these systems to adhere to the spec in terms of how to talk to the radio head, and if they do, then the expectation is that someone should be able to plug in a new radio head and be able to make that system work. That being said, where we are at right now, is we have released a public specification. We believe it's interoperable but the next stage is to do interoperability testing. We expect that to happen later this year. Once interoperability testing happens, we will know what set of systems are compatible. Then we will have, if you will, a certificate saying that these are compliant.

JC: And would that certification be just for the fronthaul component or would that be for the control plane and data plane separation as well?

SK: Our working groups are progressing at different cadences.  The fronthaul specification already is out and they expect to the interoperability testing later this year, and that will be only for the fronthaul.  As and when we release the first specification for the control plane and use plane separation, we will have a corresponding timeline. But I think one thing to realize is that these are not all coupled. You could use the fronthaul specification on its own without having the rest the architecture. You could take existing infrastructure implement just the fronthaul specification and realize the benefits of the interoperability without necessarily having a control plane that's decoupled from the user plane. So the thing is structured such that each of those working groups can act independently. We didn't want to couple them because that would mean that it'll take a long time before anything happens.

JC: Wouldn't some of the xRAN work naturally have fit into 3GPP or ETSI's carrier virtualization efforts? Why have a new forum?

SK: Definitely. 3GPP is a big intersection point. I think the way we look at it is that we are trying to work on areas that 3GPP elected not to. So if it has anything to do with the air interface, for example, how should the infrastructure talk to the phone itself -we are not trying to work in that space. If it's got anything to do with how the base station talks to the core network, we are not trying to specify that interface. But there are things that 3GPP elected not to work on for whatever reason, and which could be how vendor incentives come into play. Perhaps these vendors discouraged 3GPP from working on intereroperable fronthaul interfaces. And we don't know the reason why 3GPP chose this path. You can see that this is also operator driven. So operators want certain things to happen but they
are not successful in getting 3GPP to do it. So xRAN is a venue for them to come in and specify
what they want to do and what they want to accomplish and get appropriately incentivized
vendors to actually come up together. So it is complementary in terms of the work effort, but I could see a scenario where the fronthaul specification that we come out with, this one and the next one, eventually forms the basis for a 3GPP standardized specification -- but that's not necessarily a conflict -- that actually might be how things eventually get fully standardized.

JC: There are other virtualization ideas that have sprung up from this same lab and in the Bay Area. How does this work in collaboration with CORD and M-CORD?

SK: Historically, I think virtualization has infected, if you will, the rest of the networking domain but has struggled to make headway in the RAN. If you looked at the rest of the network there's been a lot of success with virtualization. The RAN has traditionally been quite hard to do. I think there are multiple reasons for that. One is that the workload -- the things that you want to do in their RAN -- are much more stressful and demanding than the rest of the network in terms of processing. I think the hardware is now catching up to the point where you can take off-the-shelf hardware and run virtualized instances of the RAN on top. I think that's been one.

Second, the RAN is also a little bit harder to disaggregate because many of the control plane
decisions are occurring at a very fast timescale. There are things, for example, like how should I
schedule a particular user’s traffic to be sent over the air. That's a decision that the base station is making every millisecond and, at that timescale, it's really hard to run it at a deeper level. So, having a separate piece of logic making that decision, and then communicating that decision to the data plane if you will, and then the data plane implementing that decision, which would be classically how we  think about SDN, that's not going to work because if you have a round-trip latency of one millisecond that you can tolerate, it's too stringent.  I think we need to figure out how to deconstruct the problem, take out the right amount of control logic but still leave the very latency sensitive pieces in the underlying data plane of the infrastructure itself. I think that's still work in progress. We still know there are hard technical challenges there. 

JC: Okay, talking about inspiration -- one last thing- is there an application that you have in
mind that inspires this work?

SK: Sure. I am thinking a pretty compelling example is network slicing. As you look at these very demanding applications --if you think about virtual reality and augmented reality applications, or self-driving cars --there are very strict requirements on how that traffic should be handled in the network. If I think about a self-driving car, and it wants to offload some of its some mapping and sensing capabilities to the edge cloud, that loop, that interaction loop between that car and the edge cloud has very strict requirements. And you want that application to be able to come to the network and say this is the kind of connectivity I need for my traffic, and for the network to be programmable enough that the operator should be able to program the underlying infrastructure such that I can deliver that kind of connectivity to the self-driving car application.

I think those two classes of applications are characterized by latency sensitivity and bandwidth intensity. You don't get any leeway on either dimension. Right now, the people developing those applications do not trust the network. If you think about current prototypes of self-driving cars, the developers cannot assume that the network will be there. So they currently must build very complex systems to make the vehicle completely autonomous. If we truly want to build thinks where the cloud can actually play a role in controlling some systems, then we need this programmable network to enable such a world. 

Excellent, well thank you very much and good luck!


SpaceX launches Bangabandhu-1 satellite for Bangladesh

SpaceX successfully launched Bangabandhu-1, the first Bangladeshi communications satellite, into geostationary transfer orbit aboard a Falcon 9 Block 5 version.

Bangabandhu-1, which was built by Thales Alenia Space, is fitted with 26 Ku-Band and 14 C-Band transponders. It offers capacity in Ku-Band over Bangladesh and its territorial waters of the Bay of Bengal, India, Nepal, Bhutan, Sri Lanka, Philippines and Indonesia; it also provides capacity in C-Band over the whole region. Bangabandhu

SpaceX landed the first stage approximately 11 minutes after liftoff.

Friday, May 11, 2018

Mesosphere raises $125M for its hybrid cloud

Mesosphere, a start-up based in San Francisco, announced $125 million in Series D funding for its hybrid cloud platform.

Mesosphere DC/OS automates operations. The idea is to automate workload-specific operating procedures to “as-a-Service” anything from Kubernetes to data services, while optimizing workload density to achieve the highest utilization with resource guarantees.

Mesosphere said it has nearly tripled revenue year-over-year.

The series D funding was co-led by funds and accounts advised by T. Rowe Price Associates, Inc. and Koch Disruptive Technologies (KDT) with participation from ZWC Ventures, Qatar Investment Authority (QIA) and Disruptive Technology Advisers (DTA). The round also features participation from existing investors Andreessen Horowitz, Two Sigma Ventures, Khosla Ventures, Hewlett Packard Enterprise, SV Angel, Fuel Capital, and Triangle Peak Partners.

"We make world-changing technology, like Kubernetes, Tensorflow and more, available at the click of a button, enabling business impact faster because DC/OS automates operations of more than one hundred complex technologies," said Florian Leibert, CEO and co-founder at Mesosphere. "This investment will help us to arm the enterprise with leading edge technology, like containers, machine learning, and IoT applications, allowing them to reclaim their competitive edge and reinvent the customer experience."

Protego raises $2 million for serverless security

Protego, a start-up based in Baltimore, announced $2 million in seed funding for its security solution for serverless applications.

Protego works by continuously scanning your serverless infrastructure, including functions, logs, and databases, to help increase the application’s security posture and minimize the attack surface. Using machine-based analysis and deep learning algorithms, Protego builds a model of normal function behavior to effectively detect threats, anomalies, and malicious attacks as they initiate and propagate. Protego also identifies and prevents attacks in real time and provides the “minimum effective dose” of protection in the right place, maximizing your security while minimizing your costs.

The seed funding came from a team of investors led by Ron Gula of Gula Tech Adventures, Glilot Capital Partners, and several security industry pioneers, including former RSA CTO, Tim Belcher.

“Protego is the first and only platform of its kind that delivers full life-cycle security to serverless applications from deployment to run-time – that can be up and running in just 20 minutes,” said Tsion (TJ) Gonen, CEO and Co-Founder of Protego.  “With this investment, Protego will continue to work with customers and partners to broaden our offering and bring the product to market.”

http://www.protego.io

  • "Protego" is a shield charm cast by wizards for self-protection in the Harry Potter books.


Chunghwa Telecom sets off price war with Unlimited Mobile Data Plan

Taiwan's Chunghwa Telecom set off a price war by launching a Mother's Day promotional offer of unlimited 4G service for NT$499 (US$16.7). The offer promised unlimited mobile Internet, free calls within the Chunghwa Telecom network and 180 minutes of free calls outside its network on a 30-month contract. The promotion runs May 9-15.

Local media reported long lines at Chunghwa stores, as well as complaints from competitors.


Telstra launches its first unlimited mobile data plan

Telstra has launched its first smartphone plan with unlimited data.

The Endless Data BYO personal smartphone plan is priced at Aus $69 with a 12-month contract, but after 40GB, speeds are capped at 1.5 Mbps and slowed further during busy periods. The plan also comes with unlimited talk, text and MMS to standard Australian numbers plus exclusive extras available to Telstra mobile customers – including unlimited Wi-Fi data at more than one million Telstra Air hotspots around Australia and access to every AFL, NRL and netball game this season live and fast.

“We have invested billions in our network, pioneered world-leading 4G speeds and pushed our 4G coverage out to more than 99 per cent of the population. We are now introducing the unlimited plan Australians tell us they want while maintaining the superior network experience they expect," stated Vicki Brady, Group Executive of Telstra Consumer & Small Business.

Telstra also highlighted the following network milestones:

  • Introduced the world's first gigabit-enabled network coverage using LTE-Advanced
  • Increased the number of mobile network sites to more than 9,200 nationally
  • Commenced a national rollout of small cells across Australia’s capital cities
  • Expanded 4G coverage to 99% of the population and a landmass area of 1.6m sq.km and 3G coverage to 99.4% and a landmass area of 2.5m sq.km,
  • Extended calls over Wi-Fi calling to millions of Australians
  • Expanded the Telstra Air Wi-Fi network to more than one million hotspots around Australia

Amdocs posts quarterly sales of $992M, up 2.7% yoy

Amdocs reported revenue for its second fiscal quarter ended March 31, 2018 of $992.3 million, up 1.5% or $14.6 million sequentially from the first fiscal quarter of 2018 and up 2.7% as compared to last year’s second fiscal quarter.  GAAP net income for the second quarter of fiscal 2018 was $101.7 million, or $0.70 per diluted share, compared to GAAP net income of $112.6 million, or $0.76 per diluted share, in the prior fiscal year’s second quarter. Net income on a non-GAAP basis was $137.4 million, or $0.95 per diluted share.

“We are pleased to report solid results for our second fiscal quarter which included double-digit growth in Europe and record revenue in Rest of World. Our operating profitability was stable and we grew our 12-month backlog to another new high. Additionally, we extended our technology leadership with the launch of AmdocsOne at Mobile World Congress and we utilized our cash to close on the acquisitions of Vubiquity, as well as UXP Systems, a leader in User Lifecycle Management solutions,” said Eli Gelman, president and chief executive officer of Amdocs Management Limited.

Amdocs announced a contract with Safaricom, a major mobile network operator in Kenya with 29.5 million customers. Safaricom will use revenue assurance technology and expertise from Amdocs to provide more comprehensive and adaptive revenue safeguards for the entire lifecycle of new services across its entire business.

Thursday, May 10, 2018

NEC announces agreement to supply 5G base stations to NTT DOCOMO

NEC announced an agreement to supply 5G base station equipment to NTT DOCOMO. Financial terms were not disclosed. Docomo aims to launch 5G in 2020.

Under this new agreement, NEC will achieve 5G compatibility through software upgrades and a minimal replacement of hardware to maximize the use of existing high-density base station equipment.  NEC said it will provide updates that enable existing high-density base stations to be fully compatible with 5G while continuing to deliver LTE/LTE-Advanced services.

This includes base station equipment that NEC has been supply to DOCOMO since February 2015. This equipment is already compatible with the advanced Centralized Radio Access Network (C-RAN) architecture advocated by
DOCOMO, and is now being utilized as a base station control unit.

"DOCOMO aims to deploy and expand our commercial 5G services efficiently by maximizing the use of existing communications equipment," said, Hiroshi Nakamura, Executive Vice President, Chief Technology Officer and Member of the Board of Directors, NTT DOCOMO. " This agreement with NEC is in line with that policy and we expect it to make a significant contribution to our 5G services. Going forward, DOCOMO accelerates co-creation of new services and businesses with vertical industry partners."

NTT Docomo and NEC test 5G to race car traveling at 300 km/h

NTT DOCOMO and NEC conducted a test of 5G connectivity to a race car moving at 305 km/h (190 mph)

The test, which used 28 GHz spectrum, sustained a downlink of 1.1 Gbps between the 5G base station and the 5G modem in the car moving at 293 km/h and a fast handover during communication between 5G base stations and a 5G mobile station moving at 290 km/h. In addition, the trial succeeded in a wireless live relay of 4K high-frame-rate video via uplink from a 5G mobile station moving at 200 km/h. Both the 5G base station and 5G mobile station in the car were equipped for beamforming, which concentrated radio power in a specific direction, and beam tracking, which switched the direction of the beams to follow the 5G mobile station as it moved at high speed.

The trials were conducted last month at the Japan Automobile Research Institute (JARI).

The 4K video transmission operated at 120-frames-per-second and used NTT's real-time 4K high-frame-rate HEVC codec.

Other companies involved in the trials included DOCOMO 5G Open Partner Program participants, Sony Business Solutions Corporation, and DOCOMO TEAM DANDELION RACING manager Dandelion Limited.

TE SubCom debuts SDN-powered Ocean Control Suite

TE SubCom introduced its software-defined Ocean Control suite for enabling automated control and extensive remote programmability over an entire communications network, both terrestrial and undersea.

TE SubCom said its Ocean Control Suite substantially increases the capabilities, efficiencies and options available to an external orchestrator.  The suite uses RESTful application programming interfaces (APIs) with read and write functionality to interface with undersea network elements like Wavelength Selective Switch Reconfigurable Optical Add Drop Multiplexer (WSS ROADMs). SubCom partner Ciena is among the first to take advantage of the new API capabilities, which will be demonstrated to a select audience in Ciena’s Ottawa labs throughout May.

The first release of Ocean Control, available now, supports of SubCom’s enhanced Line Monitoring System (eLMS). Two additional releases are anticipated later this year that will further expand and enhance the Ocean Control suite’s functionality to cover all major wet and dry network elements.

Mark Enright, vice president, customer solutions of TE SubCom said, “The Ocean Control suite enables us to further strengthen SubCom’s commitment to customers, through our partnership with Ciena. With this new technology, we’re building the API platform that will underpin the future of an optimized network control interface.”

“We look forward to the opportunity to put the SubCom APIs to good use. They will provide a seamless integration into our Blue Planet Manage, Control and Plan (MCP) domain controller to enable the automated delivery of services across Ciena packet-optical networks, and more programmable management,” said Ian Clarke, vice president, global submarine systems of Ciena.

Orange offers terrestrial link between Marseille and Atlantic subsea cable stations

Orange International Carrier is launching a high-capacity, direct terrestrial fiber connection between Marseille and Penmarch, linking the landing stations for Mediterranean and Atlantic subsea cables.

Orange said this new terrestrial service bridges existing submarine cable routes from Asia/Middle East and West Africa, including CHLS SMW4 Saint-Mauront, CHLS IMEWE Bonneveine and Interxion’s Data Center MRS1, at Marseille with the CHLS SMW3 and ACE submarine cables at Penmarch.

“This unique service is being added to the range of Orange solutions already available in Marseille to facilitate connections in regions where data growth is increasing significantly,” said Pierre-Louis de Guillebon, CEO of Orange International Carriers. “This is a fully Orange
owned route, which will soon be automated, and it means that Orange can now offer a secure ‘all-inclusive’ solution by way of configuration, housing and operations.”

https://wholesalesolutions.orange.com

DLR and ADVA hit 13.16T in test of free space laser for satellite comm

The German Aerospace Center (Deutsches Zentrum für Luft- und Raumfahrt – DLR), working in conjunction with ADVA, set a new data transmission record of 13.16 Tbps for free-space laser communications.

The trial, which emulated a ground to a geostationary satellite link, succeeded in transmitting 13.16 Tbps of data over a distance of 10.45km – nearly eight times the DLR’s previous record. The setup involved a laser at a ground station in Weilheim, Germany, and a mock satellite more than 10km away on the mountain Hohenpeißenberg.

DLR developed the free-space terminal technology. ADVA supplied its FSP 3000 CloudConnect platform including its QuadFlex line cards. These support high-order coherent modulation schemes and enabled each wavelength to carry 200 Gbps payload data using dual-polarization 16QAM (quadrature amplitude modulation) and strong soft-decision forward error correction. Atmospheric turbulence in the terrestrial link was equivalent to that experienced in a worst-case scenario between ground and geostationary satellites.

“This trial is a significant milestone in the evolution of stable, high-speed communication via satellite. It’s showing the industry that multi-Terabits of data can be transported every second via satellites using free-space laser communications,” said Christoph Günther, director, DLR Institute of Communications and Navigation. “One of our core aims is helping to achieve global connectivity and this test is a big part of realizing that goal. Through a lot of close collaboration between the DLR and ADVA teams, we’ve been able to demonstrate that this approach is not only feasible but that it’s ready to be used to transmit the enormous amounts of data needed for tomorrow’s users. Setting this benchmark brings high-speed broadband for everyone a step closer to reality.”

“Together with the DLR team, we’re helping shape the future of connectivity. This trial shows the full potential of free-space laser links to transform communications across the globe. We’re proud that our FSP 3000 CloudConnect is making it possible,” commented Jörg-Peter Elbers, SVP, advanced technology, ADVA. “Throughout the tests, the stability of the connection was vital. Even short interruptions of only milliseconds mean Gigabits of lost data. Thankfully, our FSP 3000 CloudConnect™ is one of the most resilient platforms on the market. This trial is about delivering the transformative power of the internet to communities and countries that need it most. By enabling affordable, reliable broadband via satellite at speeds that make a difference, we really are helping to close the digital divide.”

http://www.dlr.de/dlr/en/desktopdefault.aspx/tabid-10081/151_read-27323/year-all/#/gallery/30516

https://www.advaoptical.com/

BT outlines strategic initiative, including increased infrastructure spending and job cuts

BT outlined a series of strategic priorities as it seeks to transform into a leader in converged connectivity and services.

Highlights include:

  • Launching new converged product offerings to deliver differentiated customer experiences, support customer loyalty and improve economic returns;
  • Increasing FTTP and mobile infrastructure investment within an annual CAPEX allocation of around £3.7bn;
  • Accelerating the restructuring and transformation of Global Services by introducing new digital products with a greater focus on our top global customers, reducing capital intensity, and significantly lowering costs;
  • Focusing on around 30 modern, strategic sites to create a more collaborative, open and customer-focused working culture, including plans to exit BT’s headquarters in Central London;
  • A three-year reduction of c.13,000 mainly back office and middle management roles;
  • A year 3 cash cost reduction of £1.5 billion with costs to achieve of £800 million and 2-year payback;
  • Cost reductions to help offset near-term cost and revenue pressures, provide capacity to invest in value-enhancing projects and drive longer-term profit growth;
  • Hiring c.6,000 new employees to support network deployment and customer service.

“BT is uniquely positioned to be a leader in converged connectivity and services. We are a clear market leader in terms of the scale of our customer relationships. We have the UK’s leading fixed and mobile access networks, a portfolio of strong and well-segmented brands, and close strategic partnerships. We provide products and services that are essential to both consumers and businesses, delivered through multiple channels to suit their needs. This position of strength will enable us to build on the disciplined delivery and risk reduction of the last financial year, a period during which we delivered overall in-line with our financial and operational commitments whilst addressing many uncertainties,” stated Gavin Patterson, BT Chief Executive.

Separately, BT reported revenue of £5,967 billion for its fourth fiscal quarter ending 31-March-2018, down 1% for the year and 3% for the quarter.

Some operational highlights


  • Gfast premises of 1m and FTTP premises of 560,000 passed in Q4; over 1.5m premises able to connect to ultrafast service
  • Openreach fibre connections at 555,000 in Q4 with superfast fibre broadband passing nearly 27.6m UK premises
  • 4G coverage reaches 90% of the country as we deploy in hard to reach areas
  • Mobile postpaid net additions of 95,000, with low churn of 1.2%; monthly mobile postpaid ARPU down 1% to £26.0
  • BT Sport rights packages secured; includes Premier League matches for a further three years from 2019/20
  • Average BT Sport viewing increased 19% year on year; second best quarterly performance since launch
  • BT Consumer revenue generating units per customer increased 3% to 2.03, with ARPU up 5% to £41.7

Interoute adds UK fibre routes to Europe

Interoute has added new 100G routes between the UK and Europe, enabling service providers and large enterprises to transport traffic from the UK Midlands to Europe without going through the London area. Interoute cites improved diversity and resilience for the expansion.

Jonathan Wright, VP of Commercial Operations at Interoute, commented: "Offering unparalleled cross border capacity and connectivity has always been a cornerstone of Interoute’s strategy. With this, we will continue to provide highly strategic, robust routes to meet the multitude of demands made by our valued customers.”

Earlier, Interoute announced that it has been selected by a global social media networking company to provide over 4,000 kilometres of dark fibre in Europe, specifically in long-haul dark fibre routes in Austria, Belgium, France, Germany, Italy, Netherlands, Spain, Switzerland and the UK. Financial terms were not disclosed.

Wednesday, May 9, 2018

FWD: The death of ZTE

Zhongxing Telecommunication Equipment Corporation (ZTE), one of the world's largest suppliers of network infrastructure products, informed the Hong Kong Stock Exchange that "the major operating activities of the Company have ceased". 

If the notice means what we think it means, then ZTE is dead.


It took only 3 weeks from the day that the U.S. Commerce Department' Bureau of Industry and Security (BIS) issued its order prohibiting companies or individuals from participating in any way in an export transaction with ZTE for this multinational giant based in Shenzhen to collapse. I'm not sure there has been any other corporate collapse in the networking sector of this magnitude and in this accelerated time frame. The nearest comparison would be the collapse of Nortel in 2009, but that took years to occur rather than just weeks.

ZTE's website has already started to disappear. Many product, technology and news archive pages are now gone.

The most proximate reason for the death of the company is that without new deliveries of chipsets and optical components from U.S. vendors, the manufacturing lines for ZTE must have already come to a halt, leaving the company unable to ship products. Just-in-time manufacturing probably means that the company has insufficient inventory to sustain operations during a protracted appeal or legal fight with the U.S. Department of Commerce. More importantly, if the market has lost confidence, the sharks smell blood, and normal operations become impossible.

There will be a scramble amongst investors, creditors, employees, competitors, suppliers, and customers to secure whatever value remains in the organisation. There should be plenty.

Salvaging the good bits

First, there is a huge installed base of ZTE equipment worldwide in carrier networks, in data centres, in enterprise IT centres, and in home networks. The value of this equipment could be in the tens of billions if we take a cumulative count of sales over the last four years. These networks, which belong to the customers and their lenders, will need to be supported.  There is ongoing business here for someone.

ZTE holds the No.1 or No. 2 markets share position on many of the core infrastructure projects of the big three carriers in China -- China Mobile, China Telecom, and China Unicom.

All of ZTE's product segments were growing. Here are the 2017 annual growth rates:

  • Carrier networks 8.3%
  • Gov't and corporate 10.4%
  • Consumer 5.2%


Outside of China, ZTE has many current sales contracts and open purchase orders for new equipment, with good prospects of upcoming fibre broadband, 4G, 4G, and core network projects. 

ZTE has a very extensive telecom equipment portfolio, covering every sector of wireless networks, core networks, access & bearer networks, services and terminals. 

ZTE has been listed on the Shenzhen Stock Exchange since 1997 and on the Hong Kong Exchange since 2004. Trading has been suspended since April 16 and so there is no way to know quite yet if the shares are now worthless. The company's balance sheet at the end of 2017 showed RMB 31.647 billion in current assets, and the company's most recent statement said it was conserving cash.

ZTE has abundant in-house and contracted production facilities capable of manufacturing large volume of smartphones, customer premise equipment, and carrier infrastructure products. 

ZTE has many current and next-generation product designs using the latest silicon from U.S., Japanese, Korean, Taiwanese and other international suppliers. The product designs could be sold to other equipment suppliers.

ZTE has a considerable patent portfolio. ZTE claims to amongst the most prolific corporate patent filers in recent years. As of 30-June-2017, ZTE Group 68,000 patents, including 29,000 granted global patents.

As of mid-2017, the company was operating 20 R&D centres in China, the United States, Sweden, France, Japan and Canada, as well as more than 10 joint innovation centres established in association with leading carriers.

There is a talented pool of 74,773 employees (including 58,940 as employees of the parent company), with an average age of 33. Many of these employees have deep subject matter expertise, the vast majority of whom had nothing to do with the business decisions that got ZTE into trouble. 

ZTE was gearing up for a big play in 5G

At this year's  Mobile World Congress in Barcelona, ZTE captured the “Best Technology Innovation for 5G" award for its end-to-end vision encompassing the radio access network, the core network, bearer platforms, custom 5G silicon and CPE terminals. As with other suppliers, many of these are “works in progress” rather than commercially deployable solutions right now.

ZTE's has pushed hard on Massive MIMO, the antenna technology which has been shown to improve spectral efficiency up to 8 times.

It has been pioneering a multi-user shared access (MUSA) technology to effectively increase the number of connections served, and thereby enable support for scenarios involving mass connectivity with low power consumption. This could be extremely useful in very crowded areas, such as subway systems, when everyone is using their smartphone. The MUSA technology works by allowing high overload and eliminating scheduling operations, thereby increasing the number of connections by between 3- and 6-fold. It uses advanced spread spectrum sequence and SIC technology to simplify terminal implementation and help reduce energy consumption.

In the network core, ZTE is ready to commercialize end-to-end 5G network slicing. Its Cloud ServCore platform implements lightweight micro-service components to enable the network slices to operate independently and with easy scalability. This will allow IoT applications, for instance, to scale smoothly and without impacting other network slices.

ZTE is also readying a 5G Flexhaul bearer solution based on next-gen FlexE technology. Part of this vision to achieve a unified bearer network for 3G / 4G / 5G traffic. ZTE says its 5G Flexhaul achieves end-to-end protection switching time of less than 1ms, as well as single node forwarding latency of less than 0.5μs.




ZTE was a $20 billion company on the rise

Prior to receiving the death sentence for sanctions violations and lying to the U.S. government during a probationary period, ZTE was profitable and on a $20 billion per year sales run rate.

For Q1 2018, the company reported revenue of RMB 28.879 billion (US$5.548 billion), up 12% over the same period in 2017. Net profit after extraordinary items attributable to holders of ordinary shares of the listed company amounted to RMB 1.368 billion (US$216 million). For the full year 2017, ZTE reported operating revenue of RMB 108.82 billion, 7.49% higher than a year earlier,  

Net profit for 2017 was reported at RMB 4.55 billion, an increase of 293%. Net cash flow from operating activities for 2017 was approximately RMB 6.78 billion, about 28.88% year-on-year growth. This was a quite a recovery from 2016, when revenues grew just 4% and profits were lower. With booming handset sales in China, India and other developing markets, along with good prospects for 5G, things were looking pretty good for ZTE, until its troubles with the long-running exports violation case came to a head.

Big fine in 2017

ZTE's 2017 results were impacted by troubles with the U.S. government. In March 2017, ZTE made penalty payments of over US$1.19 billion to the U.S. government-- this too for the case involving the shipment of U.S.-origin technology to Iran during the period of economic sanctions. ZTE plead guilty in the case and paid the fine. It also agreed to a number of other conditions, which were not fulfilled, according to the U.S. Commerce Department, or which ZTE subsequently lied about. 

Huawei as the beneficiary? 

ZTE generates about 40% of its revenue abroad. 

We can surmise that many of the large carrier projects that ZTE currently has underway internationally will have been funded by the Bank of China,  the China Development Bank (CDB), or other government-backed, export/import financial institutions. These carrier customers are facing the prospect of suspended or canceled projects. This presents an opportunity for other network vendors to step in and capture the business. 


However, the customer would need to secure another funding source. Huawei is the most likely to be the ZTE replacement, especially if the Bank of China or CDB were to transfer project loans on their behalf. Ericsson, Nokia, Samsung and others also have an opening to entice these ZTE carrier customers with their offerings.

But what if Huawei is next?

However,  it is conceivable that the Trump administration will ratchet up the pressure on Huawei, for instance by extending all of parts of the ZTE export ban to them, or by persuading other governments to block Huawei as has been done in the U.S.. Many analysts expected that the ZTE ban was a bargaining chip in the recent, first round of trade negotiations between the U.S. and China. There was, and perhaps continues to be, hope that the order would be rescinded after the trade talks. This did not happen. Perhaps the trade tensions will get worse, with Huawei coming under pressure next.

With this possibility at hand, some large carriers in countries such as Japan, Germany or Singapore, may rethink their future plans with Chinese equipment vendors in general on critical projects so as not to face supply disruptions like we now see with ZTE. In Germany, Deutsche Telekom recently announced a 5G pilot deployment in Berlin using Huawei equipment. In the U.S., T-Mobile is prohibited from using Huawei as a supplier. With T-Mobile now seeking to merge with Sprint, U.S. regulators conceivably could require the German parent company to remove all Huawei gear from all of its networks as a condition for approving the merger. 

In other countries, there will be other geopolitical considerations. In Russia, ZTE has just clinched a 70% share of the first stage of  Rostelecom's the access network modernization project. ZTE's Multi-Service Access Network (MSAN) product delivers VDSL. Rostelcom is currently testing G.vectoring and G.fast for deployment in a second stage of its upgrade project. Rostelecom, of course, is Russia's leading broadband and pay-TV provider with over 12.7 million fixed-line broadband subscribers and over 9.7 million pay-TV subscribers, over 4.7 million of which are subscribed to its IPTV service. Given the need for Rostelcom to complete this network upgrade successfully, on-time and on budget, they will look for other suppliers.. but probably not from the U.S.

In India, ZTE is now a major supplier of low-cost smartphones and optical transmission gear. In October 2017, ZTE announced a 100G WDM Backbone Network Project and metro area network (MAN) construction contract with Idea Cellular, the third largest mobile operator in India with 189 million subscribers. With this deal, ZTE’s OTN optical transport platform captured a 95% share in the metro optical backbones that carry Idea Cellular’s traffic. ZTE has previously disclosed major contracts with Bharti Airtel as well. This success comes despite some protectionist voices in India warning against Chinese suppliers for critical network infrastructure.

Other recent contract wins include the Ooredoo Group, which serves 164 million customers across the Middle East, and South Africa based MTN. For Ooredoo Group, ZTE was expected to supply end-to-end networks, applications, and terminals in preparation for a 5G launch. MTN was also looking at deploying ZTE’s 5G NR radio access, 5G virtualized network slicing, carrier DevOps and container-based vEPC, and 5G Flexhaul bearer network.

The ZTE effect on suppliers

For those companies who were supplying chipsets, optical components, memories, display technologies, protocol stacks, etc. to ZTE, there will be a waiting game to see who takes up the slack. We can presume that the size and growth of the market will remain the same before and after this incident. If ZTE doesn't supply that core router, someone else will. 

What comes next?

The ZTE statement about ceasing normal activities holds out a glimmer of hope that the U.S. government might hear an appeal and grant a reprieve. Last week, U.S. trade negotiators visited China. Obviously, no deal occurred or ZTE would not have made its statement. 

Whatever comes next, it better happen quickly because sales contracts and talented employees will not stick around to what eventually emerges. The best people and ideas will move on to competitors or new ventures.

The most likely outcome is that ZTE individual business units are sold off, spun out, or otherwise reorganised into new corporate entities. In other words, the same cast of characters with the same products but operating under a new name.

ZTE: Major operating activities have ceased

ZTE stated that "the major operating activities of the Company have ceased" due to the export ban imposed on it by the U.S. Commerce Department' Bureau of Industry and Security (BIS).

The announcement was made in a regulatory filing with the Hong Kong Stock Exchange. Trading of the company's shares have been suspended since April 16th.

ZTE also said that it is actively communicating with the U.S. government in order to secure a reversal of the ban.

http://res.www.zte.com.cn/mediares/zte/Investor/20180509/E1.pdf


Vodafone to acquire Liberty Global operations for $22.7 billion

Vodafone agreed to acquire Liberty Global's operations in Germany, Hungary, Romania and the Czech Republic in a deal valued at approximately €19.0 billion ($22.7 billion). The combination is also notable for bringing together mobile infrastructure with cable operations.

Vodafone said the acquisition accelerates its convergence story and strengthens its position as a leading next generation infrastructure owner in Europe. After the merger is complete, Vodafone will have 54 million cable/fibre homes ‘on-net’ and a total NGN reach of 110 million homes and businesses, including wholesale arrangements.

In Germany, the combination of Vodafone and Unitymedia’s non-overlapping regional operations will establish a strong second national provider of digital infrastructure in the German market. The ambition is to bring Gigabit connections to around 25 million German homes (62% of total German households) by 2022.

In eastern Europe, the Liberty Global properties will complement Vodafone’s existing mobile operations in the Czech Republic, Hungary and Romania. In these markets, the combined businesses will reach over 6.4 million homes (39% of total households) and will serve 15.8 million
mobile, 1.8 million broadband, and 2.1 million TV customers.

Liberty Global said these four businesses represent approximately 28% of its consolidated 2017 operating cash flow (OCF), not including its 50% share of OCF from the VodafoneZiggo joint venture in the Netherlands. After completion of the transaction, Liberty Global will continue to be Europe’s leading cable television and broadband provider, with consolidated operations in the United Kingdom, Ireland, Belgium, Switzerland, Poland
and Slovakia. Together, these country operations reach 24 million homes, account for 26 million video, broadband and fixed-line telephony subscribers

The sale price represents a total enterprise value for all four businesses combined of 11.5 times 2017 adjusted Segment OCF, or approximately 24.0 times 2017 operating free cash flow (“OFCF”), with an implied adjusted Segment OCF multiple for Liberty Global’s German operation of 12.0 times.

"This transaction will create the first truly converged pan-European champion of competition. It represents a step change in Europe’s transition to a Gigabit Society and a transformative combination for Vodafone that will generate significant value for shareholders. We are committed to accelerating and deepening investment in next generation mobile and fixed networks, building on Vodafone’s track record of ensuring that customers benefit from the choice of a strong and sustainable challenger to dominant incumbent operators. Vodafone will become Europe’s leading next generation network owner, serving the largest number of mobile customers and households across the EU.”

Equinix and Telxius collaborate on cable landing station architecture

Equinix and Telxius, Telefónica's infrastructure subsidiary, are collaborating on U.S. facilities and services for the next-generation cable landing station architecture for the MAREA and BRUSA cable systems, both of which terminate at a cable landing station in Virginia Beach, Virginia.

The next-generation cable landing station architecture will extend the backhaul capacity into Equinix DC2 International Business Exchange (IBX) data center, simplifying network design and providing access to a dense, rich ecosystem of networks, clouds and IT service providers. Equinix customers will have direct access to the MAREA and BRUSA cable systems via a simple cross connect from any IBX data center.

The 6,600 km MAREA subsea cable, which was jointly funded by Microsoft and Facebook, is the highest capacity subsea cable system built across the Atlantic, consisting of eight fiber pairs with an initial estimated design capacity of 160 Tbps. Telxius is responsible for the operation of the cable and leverages its IP, capacity, colocation and security services through it.

Telxius is also building BRUSA, a new subsea cable spanning 10,900 km linking Rio de Janeiro and Fortaleza, Brazil, with San Juan, Puerto Rico, and Virginia Beach, VA. BRUSA, which is slated for completion by mid-2018, also features eight fiber pairs. 

Telxius has points of presence (PoPs) in more than 20 Equinix IBX data centers around the globe to support the Telxius network, including DC2 and DC6; MI1 and MI2; SP1, SP2, SP3 and SP4; RJ1 and RJ2 at which the MAREA and BRUSA cable systems terminate.

"We're partnering on new cable landing station projects that give our customers improved access to the expanding global subsea cable network. With this next-generation cable landing station design, the cables extend directly to an Equinix IBX data center. That means any user of a subsea cable system that lands inside one of our Equinix global data center termination points has instant, low-latency access to a host of vibrant industry ecosystems inside Equinix, and that's a huge advantage," stated Jim Poole, Vice President, Business Development, Equinix.

"This new cable landing station design effectively connects the data center and submarine communications worlds and opens the door to faster growth in bandwidth rates for our customers. This cutting-edge architecture leverages the ultra-high capacity of BRUSA and MAREA, two of the highest capacity cables ever built. It has been developed to fully address the needs of our customers in terms of both capacity and efficiency," stated Rafael Arranz, Chief Operations Officer, Telxius Cable Business

Telefónica's Telxius infrastructure arm expands its global reach


Telxius, Telefónica's infrastructure arm, was established in February 2016. It owns and operates a portfolio comprising nearly 16,300 telecom towers in five countries and manages an international network with around 65,000 km of submarine optical cable, including around 31,000 km owned by Telxius. The Telxius-owned network includes SAM-1 linking the U.S., Central and South America, PCCS (Pacific Caribbean Cable System) and Unisur, which connects...