Digital Realty posts mixed Q2 amid steady data center demand

Digital Realty reported its financial results for the second quarter of 2024, showcasing a steady demand for data center capacity but reflecting some mixed financial metrics. The company posted revenues of $1.4 billion, a 2% increase from the previous quarter but a 1% decrease compared to the same period last year. Despite these revenue trends, Digital Realty managed to maintain a solid position within the competitive data center market, driven by continued investments in infrastructure and strategic partnerships.

Net income for Q2 2024 was reported at $75 million, with net income available to common stockholders at $70 million, or $0.20 per diluted share. This marks a significant decline from the $0.82 per diluted share in the previous quarter and $0.34 per diluted share in the same quarter last year. This drop in earnings per share highlights the challenges Digital Realty faces in managing its cost structure and optimizing its profitability amid fluctuating market conditions.

On a more positive note, Digital Realty reported an Adjusted EBITDA of $727 million for the second quarter, reflecting a 2% increase from the previous quarter and a 4% year-over-year increase. This growth in EBITDA underscores the company's ability to effectively manage its operations and generate consistent cash flow, even as it navigates a complex and evolving market landscape. The company also reported Funds From Operations (FFO) of $511 million, or $1.57 per share, an improvement from $1.41 per share in the prior quarter and $1.52 per share in the same period last year.

Looking forward, Digital Realty remains cautiously optimistic. The company continues to see robust demand for data center space, evidenced by its leasing activity and strategic investments. However, the competitive environment and economic uncertainties necessitate a focused approach to maintaining financial health and operational efficiency. Digital Realty's leadership has reaffirmed its commitment to capitalizing on growth opportunities while managing risks effectively.

Key Metrics and Accomplishments in Q2 2024:

• Revenue: $1.4 billion (2% increase from previous quarter, 1% decrease year-over-year)
• Net Income: $75 million
• Net Income Available to Common Stockholders: $70 million, or $0.20 per diluted share
• Adjusted EBITDA: $727 million (2% increase from previous quarter, 4% increase year-over-year)
• Funds From Operations (FFO): $511 million, or $1.57 per share
• Core FFO per Share: $1.65
• Constant-Currency Core FFO per Share: $1.66 for Q2, $3.33 for the first half of 2024
• Annualized GAAP Rental Revenue from New Leases: $164 million
• Annualized GAAP Rental Revenue from Renewals: $215 million
• Debt Outstanding: $16.3 billion

Outlook:

• Revenue Guidance for 2024: $5.55 - $5.65 billion
• Adjusted EBITDA Guidance for 2024: $2.80 - $2.90 billion
• Core FFO per Share Guidance for 2024: $6.60 - $6.75
• Constant-Currency Core FFO per Share Guidance for 2024: $6.60 - $6.75
• Leasing Activity: Expected strong demand for data center space to continue
• Capital Expenditure: Focus on strategic investments and infrastructure expansion

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Sparkle Partners with Unitirreno for New Subsea Cable Landing in Genoa

 Sparkle has partnered with Unitirreno, a collaboration between Unidata and industry experts, to land its new subsea cable system at Sparkle’s Genoa Landing Platform. The Unitirreno Submarine Cable System will traverse the Tyrrhenian Sea from Genoa to Mazara del Vallo in Sicily, with future branches to Olbia, Rome, and other locations. This open cable system architecture boasts a capacity of 480 Tbps and spans approximately 1,030 km, with service expected by Q2 2025. Utilizing Sparkle's Genoa Landing Platform, Unitirreno will connect to the Genoa Digital Hub, facilitating interconnection with European terrestrial networks and Internet Exchange Points while minimizing environmental impact and administrative overhead.

• Partnership: Sparkle and Unitirreno
• Cable System: Unitirreno Submarine Cable System
• Route: Genoa to Mazara del Vallo, with branches to Olbia and Rome
• Capacity: 480 Tbps
• Length: Approximately 1,030 km
• Completion: Expected by Q2 2025
• Infrastructure: Genoa Landing Platform and Genoa Digital Hub
• Environmental Impact: Minimal, with reduced setup costs and complexities
• Strategic Advantage: Alternative to Marseille, connecting Asia, the Middle East, Africa, and European hubs

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Marvell ships 51.2 Tbps Ethernet switch for AI Data Centers

 Marvell Technology announced the production and customer deployment of its flagship 51.2 Tbps programmable Teralynx 10 Ethernet switch chip for cloud data centers. The Teralynx 10 is engineered to support training, inference, general-purpose computing, and other workloads, driving the scale of accelerated infrastructure in the rapidly growing AI sector.

Marvell said its Teralynx 10 is designed with a clean-sheet switch architecture, delivering high bandwidth, ultra-low latency, low power consumption, high radix, and zero-latency-loss programmability. This unified platform can be deployed across various network points without sacrificing functionality or performance. The switching silicon could be used in top-of-rack (ToR), leaf, spine, AI clusters, and network edge applications. Marvell’s Teralynx 10 also supports the industry’s transition to open networking, offering a robust solution that ensures a broad ecosystem of switch manufacturers and enhances silicon diversity and supply chain stability for cloud network operators.

Marvell also announced that its Teralynx 10 is available within the Linux Foundation’s SONiC (Software for Open Networking in the Cloud) network operating system. Teralynx 10-based switches can be used to power open-network environments, enabling cloud data center operators to tailor their systems, accelerate development, and diversify silicon vendors. 

Key Specifications:

• Capacity: 51.2 terabit-per-second Ethernet throughput with large buffers. Integrates Marvell’s proven, robust 112G LR SerDes, supporting up to 64 ports of 800GbE or 128 ports of 400GbE.
• Latency: As low as 500 nanoseconds, with sub-600 nanoseconds latency across all packet sizes with cut-through & store-and-forward modes
• Radix: 512 switching radix, reducing the number of switch tiers in large clusters. OEM & ODM switches can provide high port count 100G, 200G, 400G and
  800G connectivity using 50G/100G PAM4 with support for 25/50/100/
  200/400 and 800 GbE connectivity
• Power Consumption: 1 watt per 100 gigabits-per-second of bandwidth.
• Programmability: Fully programmable architecture with no impact on packet processing capacity or latency. 
• Traffic Management: Advanced QoS/traffic management feature set including DCB and RoCE. Highly scalable/flexible layer 2 and 3 tables for IPv4, IPv6 and hybrid networks. Tunneling protocols including IP-in-IP, GRE, MPLS, VXLAN and Geneve.
• Advanced Teralynx Flashlight telemetry & analytics: A ground-up telemetry architecture that delivers extensive real-time visibility and actionable granular network analytics to troubleshoot and resolve network issues quickly
• Ecosystem: Supported by major OEMs, ODMs, and ISVs to facilitate adoption and optimization.

Marvell notes that its cloud-optimized Teralynx 10 and Nova networking platform ensures interoperability between switch and optics, thereby reducing the burden of validation and interoperability testing for customers and accelerating the deployment of these next-generation technologies. 

The introduction of the Teralynx 10 comes at a pivotal time as the demand for high-bandwidth connectivity in AI data centers surges. This switch device supports the shift from proprietary network operating systems (NOS) to open network platforms such as the Linux Foundation’s SONiC and SAI, facilitating faster deployment and optimization across multiple manufacturers. According to 650 Group, shipments of 51.2 Tbps switches are projected to rise dramatically from 77,000 units in 2024 to 1.8 million by 2028, reflecting a 120% compound annual growth rate (CAGR). This significant growth underscores the switch’s critical role in the next generation of data center infrastructure.

Industry partners cited in the announcement include Celestica, Wistron Neweb, Keysight, MultiLane, and Teledyne LeCroy Xena.

“AI deployments require a switch solution which is simultaneously high bandwidth, low power, low latency, and future proofed for evolving requirements. Marvell has delivered the most complete AI Ethernet switch solution available to the industry today, and we are pleased to deliver a production-ready solution for customers' expanding 51.2 Tbps deployments,” said Nick Kucharewski, senior vice president and GM, Network Switching Business Unit, at Marvell.  “SONiC has emerged as the clear solution to enable open switch platform interoperability as well as silicon vendor diversity for the world’s largest cloud hyperscalers.” 

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Linux Foundation Launches LF Broadband

 The Linux Foundation has announced the formation of LF Broadband, an open and collaborative initiative aimed at driving innovation in open source broadband access. LF Broadband will support a range of projects transforming broadband networks and the Passive Optical Network (PON) industry, including the SEBA reference design for building open broadband networks and the VOLTHA open source project for virtualizing multi-vendor PON systems. These projects were previously hosted by the Open Networking Foundation and have now transitioned to the Linux Foundation.

LF Broadband's open source broadband projects will be based on multi-vendor solutions already in production at Türk Telekom and Deutsche Telekom. The idea is to leverage multi-protocol, centralized network management and SDN control plane supporting existing and new OLTs and ONUs.

Initial projects under LF Broadband include VOLTHA and SEBA. 

• VOLTHA provides common control and management for PON networks (OLTs and ONUs), supporting both open-hardware and traditional chassis-based OLTs with various adapters. With a highly scalable microservice architecture, VOLTHA stacks have been tested for tens of thousands of ONUs. It has been deployed in production environments by Deutsche Telekom and Türk Telekom, while multiple other operators have VOLTHA-based solutions in various stages of lab and field trials. The recently released VOLTHA v.2.12 offers robustness, device management enhancements, and support for additional subscriber profiles, driven by operator requirements. This version includes support for voice service profiles, improved error handling and recovery, enhanced management interfaces for logging, alarms, and attributes from OLTs, better observability infrastructure for OLT metrics, and stabilized test infrastructure.
• SEBA (SDN-Enabled Broadband Access) is a reference design intended to support broadband access with minimal prescription of technology choices, accommodating the network and feature needs of multiple operators with a common architecture. Supporting both residential access and wireless backhaul, SEBA serves as the foundational architecture for VOLTHA. SEBA is deployed in production by Türk Telekom.

The LF Broadband Directed Fund has been established as an independent fund under the Linux Foundation, dedicated to supporting broadband-related open source projects. These projects are already in deployment with major telecom operators such as Deutsche Telekom and Türk Telekom. LF Broadband was created from the Open Networking Foundation (ONF), which merged with the Linux Foundation in late 2023. The merger split former ONF projects into three directed funds: LF Broadband, Aether, and P4. Supported by leading telecom, networking, and broadband providers, LF Broadband projects feature open source code, open interfaces, and future-proof designs based on cloud-native architecture. Initial members include Adtran, Deutsche Telekom, Digital Platforms, Excelacom, Iowa State University, Netsia, Radisys, Türk Telekom, Universidad de Burgos, and ZTE.

Arpit Joshipura has been appointed as the Executive Director of LF Broadband. Joshipura, who also serves as the General Manager of Networking and Orchestration at the Linux Foundation, oversees other subfoundations such as LF Networking and LF Edge, bringing extensive experience and leadership to the newly formed initiative. Ahmet Fethi Ayhan of Türk Telekom and Manuel Paul of Deutsche Telekom have been elected as co-chairs of the LF Broadband Governing Board. Other governing board members are Bora Eliacik of Netsia and Robert Soukup of Radisys. 

“Deutsche Telekom is leveraging the VOLTHA framework as a key building block of our Access 4.0 network transformation program. As we continue our journey towards disaggregated and radically automated networks, we are pleased to serve and contribute to this community-led work in collaboration with peer industry & standards organizations, most importantly the Broadband Forum, under the Linux Foundation umbrella.” - Manuel Paul, Squad Lead Network Convergence, Deutsche Telekom.

"Türk Telekom has been a trailblazer in advocating for open-source technologies VOLTHA and SEBA, which enable the virtualization of access networks. Pioneering efforts in standardization, reference design leadership, and product development, Türk Telekom has elevated these technologies beyond mere trials, establishing the world’s first and largest live open-source-based (SEBA based) access network. Continuing to lead globally with an executive-level role at LF Broadband, Türk Telekom promises stronger progress through LF collaboration, aiding more operators in recognizing the true potential of these technologies. We take pride in being part of this community." - Ahmet Fethi Ayhan, Network Director, Türk Telekom

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AT&T Eyes Fiber Reach Expansion via Capital-light Partnerships

 AT&T is benefitting from a growing convergence between its fiber and wireless services, according commentary during the company’s Q2 2024 earnings call with CEO John Stankey.

In the second quarter, AT&T added 239,000 new fiber subscribers, marking the fourth consecutive quarter of positive broadband net gains. This growth is part of a broader strategy to enhance connectivity across the United States, with nearly 28 million consumer and business locations now passed by AT&T’s fiber network. The company remains on track to exceed 30 million fiber locations by the end of 2025. Stankey emphasized that the returns on fiber investments have been better than expected, leading AT&T to consider expanding its fiber footprint beyond initial targets by an additional 10 to 15 million locations.

Nearly 40% of AT&T Fiber households also use AT&T wireless services, demonstrating the appeal of bundled offerings. This synergy is not only driving customer acquisition but also improving customer satisfaction and reducing churn. Stankey noted that the ability to sell fiber services to mobile customers and leverage mobile distribution channels has been a key factor in AT&T’s strong performance. The company is also exploring capital-light arrangements with other providers of commercial open access fiber networks to further expand its reach.

• Fiber Subscriber Growth: 239,000 new AT&T Fiber subscribers in Q2.
• Broadband Expansion: Nearly 28 million locations passed, aiming for 30 million+ by 2025.
• Investment Returns: Better than expected, considering expansion by 10-15 million additional locations.
• Convergence Strategy: 40% of AT&T Fiber households also use AT&T wireless services.
• Sales Synergy: Strong performance from selling fiber to mobile customers and leveraging mobile distribution channels.
• Capital-light Expansion: Exploring partnerships with other commercial open access fiber network providers.

A transcript of the call is posted on the AT&T Investor Relations page.

In December 2022, AT&T and BlackRock Alternatives announced a joint venture to deliver fiber access outside of AT&T’s traditional 21-state wireline service footprint. 
The newly formed joint venture — Gigapower — launched in May 2023 with plans to deliver fiber connectivity in select metro areas throughout the country using a commercial wholesale open access platform. AT&T,  which will be the first tenant on Gigapower, said the new JV will greatly expand the number of customers and communities with access its AT&T Fiber internet service. AT&T is already the nation’s largest fiber internet provider in the U.S. and has previously announced plans to pass 30 million-plus consumer and business locations in its traditional service areas by the end of 2025. Gigapower will enable AT&T to expand its fiber service reach beyond its traditional service areas. In addition to Las Vegas, Gigapower now expects to expand beyond its previously announced fiber deployment in Mesa, to the Chandler and Gilbert areas of Arizona. Gigapower also plans to build fiber in parts of Northeastern Pennsylvania (including Wilkes-Barre and Scranton) as well as parts of Alabama and Florida that are outside AT&T’s current service areas.

This week, 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.

The renewed interest in fiber broadband expansion across the U.S. comes as NTIA seeks to accelerate the $42 billion BEAD initiative.

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Dell'Oro: Optical Transport Equipment Market to Grow at 2 Percent CAGR

Due to customers pausing purchases as they digest excess inventory, the Optical Transport market is forecasted to grow 2 percent on average for the next five years due to a decline in 2024, according to a new report from Dell'Oro Group.

“2024 is turning out to be a tough year for the Optical Transport equipment market because of inventory digestion,” said Jimmy Yu, Vice President at Dell’Oro Group. “But looking past this year, when the market gets through this inventory cycle, inflation moderates, and economies strengthen, we see good amounts of growth for the Optical Transport equipment market. We track four customer groups—communication service providers, cable companies, internet content providers, and others—and project all four to grow after 2024, especially content providers, to reach new revenue highs by 2028,” added Yu.

Additional highlights from the Optical Transport 5-Year July 2024 Forecast Report:

• Demand for data center interconnect (DCI) is forecast to increase each year for the next five years with nearly all of the growth from long haul deployments. Metro demand will be lower due to the increased use of routers and ethernet switches for coherent transport (IPoDWDM).
• Internet content providers (ICP) are predicted to purchase nearly 50 percent more WDM systems directly from systems manufacturers in the next five years.
• DWDM channel widths are projected to steadily increase from the standard 50 GHz. By 2028, more than 80 percent of wavelength shipments will need a channel width greater than 50 GHz.

https://www.delloro.com/news/optical-transport-equipment-market-to-grow-at-2-percent-cagr-for-next-five-years/

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AST SpaceMobile readies its first 5 commercial "Bluebird" satellites

 AST SpaceMobile has completed its first five commercial satellites, known as Bluebirds. Each satellite is equipped with communications arrays measuring 693 square feet (64.4 square meters) and is set for shipment to Cape Canaveral in early August, with a launch window scheduled for September. These satellites are designed to provide U.S. nationwide non-continuous service, leveraging over 5,600 cells in premium low-band spectrum and offering a 10-fold increase in processing bandwidth.

The Bluebird satellites have undergone extensive testing to ensure their readiness for space operations. Final preparations are underway for their shipment to Cape Canaveral, and continuous monitoring and testing will proceed until they are integrated with the launch vehicle. The launch is planned within a 7-day window in September, with the exact date to be confirmed closer to the launch. This deployment marks a significant milestone in AST SpaceMobile’s mission to enhance global connectivity and bridge the digital divide.

• Satellite Specifications: Bluebird satellites with 693 square feet (64.4 square meters) communications arrays.
• Launch Plans: Shipment to Cape Canaveral in early August; 7-day launch window in September.
• Service Capability: U.S. nationwide non-continuous service with over 5,600 cells in low-band spectrum.
• Testing and Preparations: Rigorous testing completed; final testing continues until launch integration.
• Strategic Investments: Additional investments from AT&T, Verizon, Google, and Vodafone in 2024.
• Government Contract: New contract awarded by the United States Government through a prime contractor.
• Global Partnerships: Agreements with over 45 mobile network operators, including Vodafone, AT&T, Verizon, and more, covering 2.8 billion subscribers.
• Current Investors: AT&T, Verizon, Vodafone, Google, Rakuten, American Tower, and Bell Canada.

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Juniper posts Q2 sales, merger with HPE expected to close end of year

Juniper Networks reported a decline in net revenues to $1,189.6 million, down 17% year-over-year, but up 4% sequentially. The GAAP operating margin fell to 3.8% from 9.9% in the same quarter last year, yet improved from (1.2)% in the previous quarter. Non-GAAP operating margin also decreased to 10.9% from 16.9% year-over-year but saw a slight increase from 10.6% sequentially. GAAP net income increased by 40% year-over-year to $34.1 million, translating to $0.10 per diluted share, while non-GAAP net income dropped 46% year-over-year to $101.6 million, or $0.31 per diluted share, though it rose 5% sequentially.

Juniper experienced stronger-than-expected demand, particularly from cloud customers investing in AI initiatives and robust enterprise demand, driven by its Mist-led Campus & Branch business and Enterprise data center offerings. This performance was in line with expectations and reflects the company’s optimistic outlook for long-term financial prospects.

• Net Revenues: $1,189.6 million, down 17% YoY, up 4% sequentially.

• GAAP Operating Margin: 3.8%, down from 9.9% YoY, up from (1.2)% sequentially.

• Non-GAAP Operating Margin: 10.9%, down from 16.9% YoY, up from 10.6% sequentially.

• GAAP Net Income: $34.1 million, up 40% YoY.

• Non-GAAP Net Income: $101.6 million, down 46% YoY, up 5% sequentially.

• Total Cash and Investments: $1,430.3 million as of June 30, 2024.

• Net Cash Flows Used by Operations: $8.9 million in Q2 2024.

• Days Sales Outstanding: 66 days in Q2 2024.

• Capital Expenditures: $23.4 million.

• Declared Dividend: $0.22 per share, payable on September 23, 2024.

“We experienced better than expected demand during the June quarter, with orders growing double-digits sequentially and year-over-year,” said Juniper’s CEO, Rami Rahim. “We saw particularly robust orders from our cloud customers, many of which have digested prior purchases and are investing to support AI initiatives. We also experienced better than expected enterprise demand due to continued momentum in our Mist-led Campus & Branch business and strong demand for our Enterprise data center offerings.”

“Our Q2 financial results were largely in-line with our expectations at the beginning of the quarter,” said Juniper’s CFO, Ken Miller. “Our teams continue to execute well and we remain optimistic regarding our long-term financial prospects.”

https://investor.juniper.net/investor-relations/press-releases/press-release-details/2024/Juniper-Networks-Reports-Preliminary-Second-Quarter-2024-Financial-Results/default.aspx

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Chandrasekaran to head Intel Foundry Manufacturing

Intel appointed Dr. Naga Chandrasekaran as chief global operations officer, executive vice president and general manager of Intel Foundry Manufacturing and Supply Chain organization, replacing Keyvan Esfarjani, who has decided to retire from Intel after nearly 30 years of dedicated service.

Chandrasekaran joins Intel from Micron, where he served as senior vice president for Technology Development. He will be a member of Intel’s executive leadership team and report to CEO Pat Gelsinger. Most recently, Naga led Micron’s global technology development and engineering efforts related to the scaling of current memory technologies, advanced packaging technology and emerging technology solutions. Previously, he served as Micron’s senior vice president of Process R&D and Operations.

Chandrasekaran earned a bachelor’s degree in mechanical engineering from the University of Madras; both a master’s and a doctorate degree in mechanical engineering from Oklahoma State University; a master’s degree in information and data science from the University of California, Berkeley; and dual executive MBAs from the University of California, Los Angeles (UCLA-Anderson School of Management) and the National University of Singapore.

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NETSCOUT's Q2 sees sharp drop in sales, workforce reduction

NETSCOUT SYSTEMS reported a significant drop in sales for the second quarter of fiscal year 2025. The company recorded total revenue of $174.6 million, down from $211.1 million year-over-year. Product revenue fell to $61.2 million from $94.7 million, while service revenue slightly decreased to $113.4 million from $116.5 million. The company also recently initiated a major restructuring effort, including a voluntary separation program (VSP) expected to reduce its workforce by 6.5%, or approximately 150 employees.

NETSCOUT’s GAAP operating margin plummeted to negative 265.4%, primarily due to a non-cash goodwill impairment charge of $427 million and a restructuring charge of $16.6 million. This resulted in a GAAP net loss of $443.4 million, or $6.20 per share, compared to a net loss of $4.2 million, or $(0.06) per share, in the same period last year. The company remains focused on enhancing its cybersecurity offerings and managing costs prudently. Despite the challenges, NETSCOUT extended a multi-year enterprise license agreement with a leading North American Tier-1 service provider during the quarter.

Key Financial Highlights:

• Total Revenue: $174.6 million, down from $211.1 million YoY

• Product Revenue: $61.2 million, down from $94.7 million YoY

• Service Revenue: $113.4 million, down from $116.5 million YoY

• GAAP Operating Margin: Negative 265.4% due to goodwill impairment and restructuring charges

• GAAP Net Loss: $443.4 million, or $6.20 per share, compared to $4.2 million, or $(0.06) per share YoY

• Non-GAAP Net Income: $20.6 million, or $0.28 per share, compared to $22.7 million, or $0.31 per share YoY

• Cash and Investments: $407.2 million as of June 30, 2024

• Restructuring Charges: $16.6 million in Q2, with an additional $3 million to $5 million expected in Q3

• Layoffs: Approximately 150 employees, representing 6.5% of the workforce, expected to save $25 million to $27 million annually

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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.

https://www.ntia.doc.gov/press-release/2024/biden-harris-administration-approves-utah-commonwealth-northern-mariana-islands-and-us-virgin

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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

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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.

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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

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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

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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.

https://news.lumen.com/2024-07-24-Microsoft-and-Lumen-Technologies-partner-to-power-the-future-of-AI-and-enable-digital-transformation-to-benefit-hundreds-of-millions-of-customers

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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.

https://www.crowdstrike.com/falcon-content-update-remediation-and-guidance-hub/

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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/

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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

https://awavesemi.com/wp-content/uploads/2024/07/AWE-Q2-2024-Trading-Update.pdf

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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."

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