Fireside Chat: Pipe Dreams and AI Realities — Networking's Midlife Crisis

Our #AIinNetworking Report just published (download at: https://ngi.fyi/ainetwork24yt) ! 

In this fireside chat, report authors, AvidThink's Archana Khetan (contributing analyst) and Roy Chua discuss what they learned in putting together the report. They will cut through the hype and provide context on:

- Why more #AI in networking and why now

- #PredictiveAI and #GenerativeAI - how they see the respective applicability

- Top use cases for #AIOps, #AIinNetworking and timeframes

- Milestones on the journey to #AutonomousNetworks

- Recommendations for CIOs and tech leaders at enterprise and carriers

https://www.youtube.com/watch?v=YdC_tXzCRvg&t=0s

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Cisco's Q4 Boosted by Splunk Integration Despite Revenue Decline

 Cisco announced its financial results for the fourth quarter and fiscal year 2024, reporting a revenue of $13.6 billion for Q4, slightly above its guidance range. The company's product order growth saw a 14% year-over-year increase, with a 6% growth excluding Splunk. However, revenue for the quarter decreased by 10% compared to the previous year, reflecting broader market challenges. Cisco's strong margins continued to impress, with a GAAP gross margin of 64.4% and a non-GAAP gross margin of 67.9% for Q4, the highest in two decades.

For the fiscal year 2024, Cisco reported total revenue of $53.8 billion, a 6% decrease from the previous year. Despite the revenue decline, the company achieved solid growth in software and recurring revenue metrics, bolstered by the integration of Splunk. Total subscription revenue reached $27.4 billion, representing 51% of Cisco's total revenue. Additionally, the annualized recurring revenue (ARR) hit $29.6 billion, marking a 22% year-over-year increase, with $4.3 billion contributed by Splunk.

Looking ahead, Cisco provided guidance for the first quarter and full fiscal year 2025, projecting revenue between $55.0 billion and $56.2 billion for the year. The company remains focused on driving growth in AI, cloud, and cybersecurity, while maintaining strong capital returns. Cisco also declared a quarterly dividend of $0.40 per share, reflecting its commitment to returning value to shareholders.

Key Highlights:

• Q4 FY 2024 revenue: $13.6 billion, down 10% year-over-year.
• FY 2024 revenue: $53.8 billion, down 6% year-over-year.
• Strong margins: Q4 GAAP gross margin of 64.4%, non-GAAP gross margin of 67.9%.
• Software and subscription growth: $27.4 billion in subscription revenue, 51% of total revenue.
• Annualized Recurring Revenue (ARR): $29.6 billion, up 22% year-over-year.
• Dividend: Quarterly dividend of $0.40 per share.

"We delivered a strong close to fiscal 2024, with steady customer demand and order growth across the business as customers rely on Cisco to connect and protect all aspects of their organizations in the era of AI," said Chuck Robbins, CEO of Cisco.

https://newsroom.cisco.com/c/r/newsroom/en/us/a/y2024/m08/cisco-reports-fourth-quarter-and-fiscal-year-2024-earnings.html

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Cisco's Jonathan Davidson Steps Aside, Jeetu Patel to Lead Unified Product Team

Cisco announced several strategic changes to adapt to the evolving technology landscape and better support its customers in modernizing infrastructure, mitigating cyber risks, and leveraging data. Jonathan Davidson, who has been leading Cisco Networking, is stepping down to serve as an advisor to CEO Chuck Robbins. In response, Cisco is consolidating its Networking, Security, and Collaboration teams into a single organization, now led by Jeetu Patel, who assumes an expanded role as Cisco’s EVP and Chief Product Officer. This new structure aims to accelerate product innovation, unify the company's portfolio, and enhance customer experiences as Cisco integrates the Splunk product line into its operations.

Cisco is consolidating Networking, Security, and Collaboration into one organization.

• Jeetu Patel, now Cisco's EVP and Chief Product Officer, will lead the unified team.
• Integration of Splunk products will be part of this new structure.
• The reorganization focuses on driving innovation and delivering unified solutions.
• These changes were detailed in a blog post by Cisco's CEO, Chuck Robbins.

https://blogs.cisco.com/news/bringing-our-portfolio-together

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Telstra Expands 5G and Fiber Networks Amid Mixed FY24

 Telstra reported FY24 financial results, revealing a mixed performance across its business segments, with total income rising by 1.0% to $23.5 billion. The company’s mobile division remained a standout performer, with a 4.5% increase in income to $10.7 billion, driven by strong growth in postpaid, prepaid, and IoT services, alongside a 24.6% surge in wholesale revenue. Despite these gains, Telstra faced challenges in its Fixed – Consumer & Small Business (C&SB) and Fixed – Enterprise segments, where income fell by 2.3% and 2.7% respectively, contributing to a 4.2% decline in overall EBITDA to $7.5 billion. However, the company’s underlying EBITDA grew by 3.7% to $8.2 billion, reflecting its ongoing efforts to streamline operations and reduce costs.

Telstra made significant strides in its network infrastructure, particularly through the expansion of its 5G coverage, which now reaches 89% of the Australian population. The company also continued the development of its intercity fiber network, laying the groundwork for five new routes set to begin construction in 2025. Telstra’s T25 transformation plan remains on track, focusing on enhancing customer experience, strengthening network leadership, and achieving its sustainability goals, including an increased carbon reduction target.

Despite the challenges faced in certain segments, Telstra’s commitment to infrastructure growth and customer service positions it well for the future, with key investments in spectrum and network upgrades expected to support long-term growth.

Overall Financial Performance:

• Total income increased by 1.0% to $23.5 billion.
• EBITDA declined by 4.2% to $7.5 billion, while underlying EBITDA grew by 3.7% to $8.2 billion.
• Profit for the period fell by 12.8% to $1.8 billion, with underlying profit up 7.5% to $2.3 billion.

Mobile Business Growth:

• Mobile income up 4.5% to $10.7 billion, driven by a 5.6% increase in mobile services revenue.
• Strong growth in wholesale revenue (+24.6%) and IoT services (+2.1%).

Fixed-Line Operations Challenges:

• Fixed – Consumer & Small Business income down 2.3%, impacted by declines in core connectivity and content services.
• Fixed – Enterprise income decreased by 2.7%, with notable declines in Data and Connectivity (DAC) and Network Applications and Services (NAS).

Network Expansion and Upgrades:

• Achieved 89% 5G population coverage, with 54% of mobile traffic now on 5G.
• Expanded the intercity fiber network, with five new routes planned, including key connections between major Australian cities.
• Invested $1.3 billion in spectrum licenses to enhance 5G capabilities.

Sustainability and T25 Transformation:

• Increased carbon emission reduction target to 70% by 2030, with significant investments in renewable energy projects.
• Continued progress on the T25 plan, focusing on cost reduction, network leadership, and customer experience improvements.

https://www.telstra.com.au/content/dam/tcom/about-us/investors/pdf-i/financial-results-for-the-full-year-ended-30-june-2024.pdf

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Lumentum's FY24 Sales Dip 23% as Cloud and Networking Segments Face Headwinds

Lumentum reported its fiscal fourth-quarter and full-year 2024 financial results, revealing mixed performance amidst challenging market conditions.

Fiscal Fourth Quarter 2024 Highlights

• Net Revenue: $308.3 million, a 15.9% decline from the previous quarter.
• GAAP Operating Loss: 43.3% of revenue, reflecting deepening losses.
• Non-GAAP Operating Margin: Narrowed to -0.3%, compared to 4.1% in the prior quarter.
• GAAP Net Loss: $252.5 million, translating to a loss of $3.72 per share.
• Non-GAAP Net Income: $4.0 million, or $0.06 per share.

Full Fiscal Year 2024 Highlights:

• Net Revenue: $1.36 billion, down 23.1% year-over-year.
• GAAP Operating Loss: 31.9% of revenue, indicating significant financial strain.
• Non-GAAP Operating Margin: 2.8%, a sharp decrease from 19.2% in fiscal 2023.
• GAAP Net Loss: $546.5 million, or $8.12 per share.
• Non-GAAP Net Income: $68.7 million, or $1.01 per share.

“We exceeded our guidance midpoints for both revenue and EPS in the fourth quarter. We booked record orders for datacom chips used in data center applications and saw emerging positive trends in the broader traditional networking market,” said Alan Lowe, President and CEO. “We are making significant progress executing our strategy to broaden our cloud and AI customer base, which will lead to accelerated growth in calendar year 2025.”

Market Segment Performance

• Cloud & Networking: Revenue of $254.7 million in Q4, an 18.8% decline from Q3.
• Industrial Technology: Revenue of $53.6 million in Q4, marking a slight 1.7% increase from Q3 but a 36.4% year-over-year decline.

For the first quarter of fiscal 2025, Lumentum projects net revenue between $315 million and $335 million, with a non-GAAP operating margin ranging from 0% to 3.0%, and non-GAAP EPS between $0.07 and $0.17.

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Telstra and Optus Extend 3G Network Closure to October 2024

Telstra and Optus have announced an extension to the closure of their 3G networks, now set for October 28, 2024. This additional time will be used to intensify public safety awareness efforts, ensuring that all 3G users transition to 4G and 5G networks before the shutdown. The extension aims to address concerns and prepare users, particularly those dependent on 3G for emergency services, medical devices, and IoT systems.

• 3G networks to start closing on October 28, 2024.
• Telstra and Optus to launch a public safety campaign to ensure a smooth transition.
• Users must verify device compatibility with 4G/5G for continued service, especially for critical applications.
• 3G closure is essential for expanding 4G/5G services across Australia.

Telstra CEO Vicki Brady emphasized, “We have been communicating to customers about the need to prepare and make the move for almost five years… our support for customers won’t end the day the network closes.”

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GCT Semi Partners with Samsung on 4G/5G Chipsets

GCT Semiconductor signed a Memorandum of Understanding (MOU) with Samsung Electronics to accelerate the development and adoption of advanced 4G/5G chipsets and modules. This collaboration aims to enhance the global 4G/5G ecosystem, particularly for OEM/ODM device makers, and to support wireless operators worldwide, including in critical sectors such as mission-critical public safety and the oil industry.

• Partnership Focus: Joint development of 4G/5G chipsets and modules.
• Ecosystem Expansion: Strengthening the 4G/5G ecosystem globally, with a focus on device makers and wireless operators.
• Target Sectors: Support for industries like public safety and oil, including Saudi Arabia's Aramco.
• Technical Collaboration: Samsung to provide test environments and interoperability support for GCT's chipset certification.

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Telstra's AI Path to Autonomous Networks

How is Telstra leveraging AI to transform network operations and management?

Channa Seneviratne, Technology Engagement & Advancement Executive from Telstra explains:

- AI is automating key business processes and managing network complexity through machine learning algorithms

- Predictive maintenance and self-healing closed-loop assurance are enabled by analyzing millions of alarms and performance indicators

- Generative AI ingests documentation and past event history to help smart people triage incidents and resolve issues faster

https://ngi.fyi/ainetwork24-telstra-channa4

Want to be involved our video series? Contact info@nextgeninfra.io

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Accelerating AI with Telstra's Inter-City Fibre

What role will Telstra $1.6 billion inter-city fibre upgrade programme play in acclerating Australia's AI future?

Channa Seneviratne,Technology Engagement & Advancement Executive from Telstra, explains:

- Telstra is investing $1.6 billion in a new optic fiber highway connecting all Australian capital cities

- The company has already laid 1,800 km of new inter-city fiber, enabling high-speed data transport

- Microsoft, as a foundation partner, plans to connect their data centers using this inter-capital fiber network for AI applications

https://youtu.be/fnqWTYx1gcg

Have a tech update that you want to brief us on? Contact info@nextgeninfra.io!

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AI Accelerates Network Productivity

 Join our *YouTube Live Event* on Aug 14 (Wed) at 0930 Pacific Time: https://www.youtube.com/live/CVT31Oy3yv0?feature=shared

where our analysts will conduct a behind-the-scenes chat about our AI in Networking Report and take your questions. Join us!

How is AI transforming the networking industry?

Azita Arvani, Former CEO Raktuen Symphony North America, Board Member, Entrepreneur from Arvani Group explains:

- AI for networking offers significant productivity gains and efficiencies, including energy savings through intelligent network infrastructure management

- Generative AI is being utilized for customer service, content portals, and network design and management through digital twins and machine learning

- Networking for AI enables the next generation of AI by facilitating data collection from IoT devices and leveraging edge clouds for distributed, real-time AI processing

https://youtu.be/BhnsKNLLwFs

Meanwhile, check out our #AI in Networking report and more videos here: https://ngi.fyi/ainetwork24yt

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Linux Foundation: Domain-Specific AI for Networking

Join our *YouTube Live Event* on Aug 14 (Wed) at 0930 Pacific Time: https://www.youtube.com/live/CVT31Oy3yv0?feature=shared

where our analysts will conduct a behind-the-scenes chat about our AI in Networking Report and take your questions. Join us!

Meanwhile, check out our #AI in Networking report and more videos here: https://ngi.fyi/ainetwork24yt

How is domain-specific AI revolutionizing enterprise verticals?

Arpit Joshipura, GM Networking + Edge IOT from Linux Foundation explains:

- Domain-specific AI requires industry-specific data and models tailored to each sector's unique needs

- In telecommunications, network data is used to train models for optimizing customer service, policies, and intent-based networks

- Linux Foundation Networking is developing projects like ANOAT to anonymize data for training domain-specific AI models

https://youtu.be/dxAlFTVyNsc

Want to be involved our video series? Contact info@nextgeninfra.io

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NTT Data: Edge AI Boosting Efficiency with Real-Time Intelligence

How is Edge AI transforming industrial operations?

Parm Sandhu, VP Enterprise 5G Products & Services from NTT Data explains:

- Edge AI enables real-time decision-making by analyzing large amounts of data with ultra-low latency and security

- NTT Data's Edge AI solution offers industry-specific applications like predictive maintenance and machine vision for immediate ROI

- AI integration in network operations helps predict potential problems, monitor quality of service, and enhance security monitoring

https://youtu.be/dWmcSbWy2oY

Want to be involved our video series? Contact info@nextgeninfra.io

Check out our #AI in Networking report and more videos here: https://ngi.fyi/ainetwork24yt

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Oracle Taps AT&T’s Network APIs for IoT

Oracle has announced a significant partnership with AT&T, integrating AT&T’s IoT connectivity and network APIs into Oracle's Enterprise Communications Platform (ECP). This collaboration will empower Oracle's industry cloud application customers to seamlessly connect and manage their IoT devices on AT&T’s network, enhancing the reliability and security of communications. Built on Oracle Cloud Infrastructure (OCI), this all-in-one solution streamlines the process for businesses by eliminating the complexity of managing separate integrations and network contracts.

The partnership is particularly impactful for Oracle’s Public Safety Suite, where AT&T's FirstNet® plays a crucial role. This integration provides secure, near real-time communications, essential for public safety operations such as dispatch command centers and live camera feeds for first responders. The collaboration aims to deliver a new generation of industry applications across various sectors, from automated utility grid management to enhanced telehealth services, leveraging the full potential of 5G connectivity.

• Oracle integrates AT&T’s IoT connectivity into its Enterprise Communications Platform.
• The collaboration simplifies IoT device management for Oracle's industry cloud application customers.
• Built on Oracle Cloud Infrastructure (OCI), it enhances security and performance.
• The partnership is key to Oracle’s Public Safety Suite, enabling critical real-time communications.
• The collaboration aims to drive innovation across industries with 5G-enabled applications.

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SK Telecom Reports Strong 2Q 2024, Accelerates AI Investments

SK Telecom (SKT) announced its financial results for the second quarter of 2024, with revenue reaching KRW 4.4224 trillion (approximately $3.36 billion), operating income of KRW 537.5 billion (approximately $408 million), and net income of KRW 350.2 billion (approximately $266 million). 

A key highlight of the quarter was the company's strategic push into the AI sector, marked by securing its first AI cloud order from domestic internet service providers. SKT plans to scale up its AI cloud business significantly as part of its broader strategy to build a comprehensive AI value chain, including AI Data Centers and services. The company has invested over $300 million since last year to establish a strong foundation in AI, with further plans to invest $200 million in SMART Global Holdings to enhance its AI infrastructure capabilities.

• SKT reports Q2 2024 earnings with consolidated revenue of KRW 4.4224 trillion (~$3.36 billion).
• The company secured its first AI cloud order, planning significant expansion in the AI sector.
• Over $300 million invested in AI since last year, with a focus on AI Data Centers.
• SKT to invest $200 million in SMART Global Holdings for AI infrastructure development.
• The company continues to grow its mobile, pay TV, and broadband subscriber base.

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Verizon Secures $4M Contract to Upgrade NLRB's 48-site SDWAN

Verizon has secured a new $4 million Enterprise Infrastructure Solutions (EIS) contract with the National Labor Relations Board (NLRB), a federal agency dedicated to protecting private sector employees' rights. Under this agreement, Verizon will reconfigure and upgrade the NLRB’s Software-Defined Wide Area Network (SD-WAN) across all 48 branch offices and headquarters, while also providing new distributed security infrastructure and cloud hosting services. This contract reinforces Verizon's leadership in delivering EIS services to federal agencies and highlights their expertise in developing tailored, secure networking solutions.

• Verizon to reconfigure and upgrade NLRB’s SD-WAN under a $4 million contract.
• The project includes new distributed security infrastructure and cloud hosting services.
• This contract strengthens Verizon’s position as a leading EIS provider for federal agencies.
• Verizon recently announced a 1,000-site SD-WAN rollout for the Commonwealth of Virginia.

https://www.verizon.com/about/news/verizon-business-upgrade-sd-wan-49-national-labor-relations-board-locations

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Pure Storage Looks to Ultra Ethernet for AI and HPC Advancements

Pure Storage has announced joined the Ultra Ethernet Consortium (UEC), which is dedicated to advancing Ethernet technology for AI and high-performance computing (HPC) applications. Pure Storage aims to contribute to the development of open, Ethernet-based architectures that support large-scale AI and HPC workloads. 

As part of its involvement, Pure Storage will help shape and integrate UEC technology standards into its platform, optimizing it for Ethernet-based AI and HPC applications. The move comes as enterprises increasingly adopt Ethernet for its cost-effectiveness, interoperability, and reliability, making it a cornerstone of AI infrastructure. The Ultra Ethernet standards being developed by UEC will enable businesses to maximize their AI and HPC investments, driving innovation and improving operational efficiency.

The partnership underscores Pure Storage’s dedication to providing flexible and high-performance data storage solutions tailored to the evolving needs of AI and HPC workloads. By collaborating with other industry giants within the UEC, Pure Storage will play a key role in advancing Ethernet technology to meet the growing demands of modern enterprises.

"Joining the UEC provides Pure with the opportunity to work alongside leaders in compute, networking, and storage to drive the development of a new ultra-Ethernet architecture for the most advanced AI and HPC workloads," said Maciej Kranz, GM, Enterprise, Pure Storage.

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Telstra and Microsoft Accelerate AI Innovation in Australia

Telstra and Microsoft have announced an expanded strategic partnership aimed at accelerating AI innovation and digital transformation in Australia. This collaboration combines Microsoft's leading AI technology with Telstra's ultra-fast Intercity Fibre Network, which will enhance connectivity solutions across the country. As part of this initiative, Microsoft has chosen Telstra as a strategic partner to extend its AI infrastructure in Australia, addressing the growing demand for advanced AI capabilities.

In a significant move, Telstra is investing in 21,000 Microsoft 365 Copilot licenses, marking the largest deployment of the generative AI service in Australia and one of the largest globally for a telecommunications company. This investment is part of Telstra's broader strategy to equip its employees with cutting-edge AI tools, ensuring they are prepared for the future of work. The partnership also emphasizes the importance of robust, secure, and scalable connectivity to support the vast data processing needs of AI technologies.

The partnership underscores Telstra's commitment to building Australia's AI ecosystem, with its Intercity Fibre Network playing a crucial role in this effort. The network, already extending over 1,800 kilometers, is designed to support the transition from gigabyte to terabyte data capacities, essential for AI, quantum computing, and new data center developments. This expanded collaboration with Microsoft is set to drive significant growth in Australia's digital infrastructure and AI capabilities.

Key Points:

• Telstra and Microsoft expand their partnership to advance AI innovation in Australia.
• Microsoft selects Telstra as a strategic partner to extend its AI infrastructure using Telstra's Intercity Fibre Network.
• Telstra invests in 21,000 Microsoft 365 Copilot licenses, marking the largest deployment in Australia.
• Telstra's Intercity Fibre Network will enhance connectivity, crucial for AI and quantum computing.
• The partnership builds on a strategic five-year agreement to support Australia's digital growth.

"Microsoft’s leadership in AI is driving the demand for capacity in our infrastructure, and Telstra is building that connectivity to meet this demand. Together we’re building the AI ecosystem of Australia," said Telstra CEO Vicki Brady.

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Bharti Global Acquires 24.5% Stake in BT Group from Altice UK

Bharti Global has agreed to acquire a 24.5% stake in BT Group from Altice UK, marking a significant investment in the UK telecoms giant. 

The acquisition will be executed in two stages, with an initial 10% stake purchased immediately and the remainder following regulatory approvals. Bharti Global, the international investment arm of Bharti Enterprises, has expressed strong support for BT's current leadership and long-term strategy. The deal highlights Bharti's commitment to BT's future and its recognition of the company's national importance and extensive infrastructure in the UK.

Key Points:

• Bharti Global to acquire a 24.5% stake in BT Group from Altice UK in a deal valued at approximately £3.2 billion.
• The acquisition will occur in two stages, with 10% purchased immediately and the rest after regulatory approvals.
• Bharti Global supports BT's CEO Allison Kirkby and the company's strategic direction.
• Altice UK initially acquired its stake in BT in 2021 but has faced losses due to a decline in BT's share value.

https://newsroom.bt.com/bt-group-statement-re-bharti-globals-investment/

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Eutelsat Reports Strong Q2, Ramp-up of OneWeb’s LEO Constellation

Eutelsat Communications has reported its financial results for the year ending June 30, 2024, showcasing significant strides in its operational metrics, particularly following its merger with OneWeb to become the world’s first LEO-GEO satellite operator. The company posted total revenues of €1,213 million, marking a 7.2% increase year-over-year, with strong contributions from both its Low Earth Orbit (LEO) and Geostationary Orbit (GEO) operations. This growth was primarily driven by an acceleration in connectivity services, especially through the deployment of OneWeb’s LEO constellation and incremental GEO capacity.

The financial results highlight a robust performance in the Connectivity segment, which saw revenues soar by 44.7% in Mobile Connectivity and 31.7% in Fixed Connectivity, reflecting the increasing demand for satellite broadband and data services. Eutelsat’s backlog also grew to €3.9 billion, up from €3.4 billion the previous year, with connectivity services now representing 56% of the total backlog. However, the company faced challenges with a decline in Video revenues, down 6.8%, reflecting the ongoing transition in the satellite communications market.

Eutelsat’s focus on LEO initiatives was evident in the successful ramp-up of the OneWeb constellation, with significant commercial traction, including a major contract with Intelsat. The company also completed the space-segment deployment of the OneWeb network, enhancing its service offerings. As Eutelsat continues to expand its LEO-GEO services, it remains committed to maintaining financial stability, reflected in its strong liquidity position and controlled capital expenditures.

• Eutelsat reported FY 2023-24 revenues of €1,213 million, up 7.2% year-over-year.
• Significant growth in Connectivity, with Mobile Connectivity up 44.7% and Fixed Connectivity up 31.7%.
• Backlog increased to €3.9 billion, with Connectivity now representing 56% of total backlog.
• Successful ramp-up of OneWeb’s LEO constellation, including a major contract with Intelsat.
• Eutelsat maintains a strong liquidity position, with cash and undrawn credit lines totaling €1.39 billion.

"We remain confident in our ability to grow connectivity revenues in LEO, whilst maintaining market share in GEO, based on both independent market forecasts as well as our in-market experience of customer appetite for multi-orbit capacity," said Eva Berneke, Chief Executive Officer of Eutelsat Communications.

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Eutelsat to Carve Out Ground Infrastructure

Eutelsat Group has announced plans to carve out its passive ground infrastructure assets into a new standalone company in partnership with the EQT Infrastructure VI fund. The deal, which involves signing a put option agreement with EQT, will see Eutelsat retain a 20% stake in the newly formed entity, while EQT will hold 80% of the capital. This strategic move will create the world's largest pure-play, operator-neutral, ground station-as-a-service company, combining satellite expertise with infrastructure service excellence.

The new entity, valued at €790 million, will take over Eutelsat's passive assets, including land, buildings, antennas, and connectivity circuits. Eutelsat will maintain its role as a long-term shareholder, anchor tenant, and partner, ensuring seamless continuity of services through a master service agreement (MSA) with the new company. This transaction is expected to enhance Eutelsat's financial profile by shifting future maintenance capital expenditures to the new entity, allowing the company to focus on advancing its multi-orbit fleet.

Key Points:

• Eutelsat to carve out passive ground infrastructure assets into a new standalone company with EQT owning 80%.
• The new entity will be the world's largest operator-neutral, ground station-as-a-service company.
• Eutelsat to enter a long-term master service agreement with the new company to ensure service continuity.

"We are proud to become the first satellite operator to embark on this innovative transaction which would allow us to build on the model adopted in other industries, and to optimize the value of our extensive ground network," said Eva Berneke, CEO of Eutelsat Group. "This transaction would represent a win-win situation for all parties, and would enable Eutelsat to strengthen its financial profile, whilst continuing to rely on the unparalleled quality and reliability of its ground infrastructure."

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