Texas Instruments Secures $1.6 Billion in CHIPS Act Funding

Texas Instruments (TI) reached a preliminary agreement with the U.S. Department of Commerce to potentially receive up to $1.6 billion in funding under the CHIPS and Science Act. This financial support will aid in the construction of three new 300mm semiconductor wafer fabs located in Sherman, Texas, and Lehi, Utah. The investment is expected to enhance TI's manufacturing capabilities, providing a reliable supply of analog and embedded processing semiconductors crucial for various technologies.

In addition to the CHIPS Act funding, TI anticipates receiving between $6 billion and $8 billion from the U.S. Department of Treasury's Investment Tax Credit for its domestic manufacturing investments. The proposed funding will also include $10 million dedicated to workforce development, which will create over 2,000 new jobs at TI and thousands more indirectly across related industries. The new fabs are part of TI’s broader $18 billion investment in manufacturing through 2029, aimed at expanding its semiconductor production and strengthening its market position.

Haviv Ilan, President and CEO of Texas Instruments, emphasized the significance of this investment, stating, "The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient. Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the U.S."

The proposed direct funding under the CHIPS Act would support TI's investment of more than $18 billion through 2029, which is part of the company's broader investment in manufacturing. This proposed direct funding will support three new wafer fabs, two in Sherman, Texas, (SM1 and SM2) and one in Lehi, Utah (LFAB2), specifically to:

• Construct and build the SM1 cleanroom and complete pilot line for first production;
• Construct and build the LFAB2 cleanroom for first production; and
• Construct the SM2 shell.

These connected, multi-fab sites benefit from shared infrastructure, talent and technology sharing, and a strong network of suppliers and community partners. They will produce semiconductors in 28nm to 130nm technology nodes, which provide the optimal cost, performance, power, precision and voltage levels required for TI's broad portfolio of analog and embedded processing products.

The project will create over 2,000 direct jobs at TI and thousands of additional jobs in construction and related sectors.

Since its enactment in August 2022, the CHIPS and Science Act has significantly bolstered U.S. semiconductor manufacturing with substantial federal funding. Intel has received approximately $20 billion for its expansion projects, including new fabs in Ohio. Micron Technology has been awarded around $15 billion to support its memory chip production expansion in Idaho. GlobalFoundries was granted $10 billion to enhance its semiconductor manufacturing capabilities at its facilities in New York. 

https://news.ti.com/2024-08-16-Texas-Instruments-signs-preliminary-agreement-to-receive-up-to-1-6-billion-in-CHIPS-and-Science-Act-proposed-funding-for-semiconductor-manufacturing-in-Texas-and-Utah?HQS=corp-dbwti-manu-chips-bhp-pr-null-wwe

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Ericsson to Sell iconectiv (formerly Telcordia, Bellcore) to Koch for US$1 billion

 Ericsson  announced a strategic divestment of its U.S. subsidiary, iconectiv, to Koch Equity Development. Acquired by Ericsson in 2012 through the Telcordia acquisition, iconectiv specializes in network number portability and data exchange services. The sale is expected to provide Ericsson with a cash benefit of approximately SEK 10.6 billion (USD 1.0 billion) after accounting for taxes and transaction costs. The deal, which will require regulatory approvals, is anticipated to close in the first half of 2025.

The transaction will also result in a one-off EBIT benefit of around SEK 8.8 billion (USD 0.8 billion) for Ericsson. Iconectiv, which has been co-owned by private equity firm Francisco Partners since 2017, contributed SEK 1.0 billion (USD 0.1 billion) to Ericsson’s net income in 2023. The divestment aligns with Ericsson's strategy to streamline its operations and focus on its core business areas.

Under its new ownership, iconectiv is expected to continue its growth trajectory. The move will allow the company to further develop its number portability and network services offerings without the strategic constraints of its previous parent company. Ericsson’s decision reflects its ongoing efforts to optimize its portfolio and enhance shareholder value.

Key Points:

• Ericsson is selling iconectiv to Koch Equity Development LLC.
• The sale will generate approximately SEK 10.6 billion (USD 1.0 billion) in cash for Ericsson.
• A one-off EBIT benefit of SEK 8.8 billion (USD 0.8 billion) is anticipated upon transaction closure.
• The transaction is subject to regulatory approval and expected to complete in the first half of 2025.
• Iconectiv has been a part of Ericsson since 2012 and has co-ownership with Francisco Partners since 2017.

"By divesting iconectiv, we are enabling the company to pursue its growth ambitions under new ownership while streamlining our focus on core areas," said Börje Ekholm, CEO of Ericsson.

• iconectiv, which is based in Bridgewater, New Jersey, was founded as Bellcore in 1984. The company changed its name to Telcordia in 1999. 
• iconectiv is known as the global leader in providing numbering solutions and previously designated by the U.S. Federal Communications Commission to serve as the Local Number Portability Administrator in the U.S.
• In 2012, Ericsson acquired Telcordia for $1.5 billion in cash from Providence Equity Partners and Warburg Pincus.
• In 2017, Francisco Partners invested US$200 million to acquire a 16.7% ownership in iconectiv, an independent subsidiary owned by Ericsson that develops connectivity solutions used by more than 1,200 service providers, regulators, enterprises, and content providers worldwide.

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Archtop Fiber picks Render to accelerate rollout in Hudson Valley

Render Networks announced a partnership with Archtop Fiber to expedite the deployment of high-speed, reliable, and affordable fiber internet across underserved markets in the Northeast U.S. This collaboration aims to enhance efficiency through Render’s network construction management technology, which will streamline the entire process from construction to operations. 

Render Networks, based in Melbourne, Australia, offers a construction management platform optimized for fiber network deployment, focusing on digitizing geospatial data flow in real-time to enhance the efficiency of network construction and management.

Archtop Fiber is headquartered in Kingston, NY in the Hudson Valley region. The company is investing up to $350 million to build out their fiber network in the Hudson Valley area, including Ulster, Sullivan, Dutchess, Columbia, Greene and Orange Counties in New York

• Render Networks provides construction management technology to accelerate fiber deployment.
• Archtop Fiber focuses on underserved markets in the Northeast U.S., offering multi-gig services.
• The partnership will enhance efficiency, driving faster network build-out and improved operations.
• Render’s solution integrates with VETRO Fibermap for seamless fiber management.

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Sterlite to Appeal Verdict in Prysmian Lawsuit

Sterlite Technologies has decided to appeal a recent federal district court verdict in a lawsuit filed against it by Prysmian Cables & Systems. STI asserts that the verdict is not supported by the evidence and testimony presented during the three-year case and believes the lawsuit was initiated for anti-competitive reasons. The court dismissed all but two of Prysmian’s claims against STI.

Earlier this month, a jury in South Carolina awarded $96.5m in damages to Prysmian Cables.

STI emphasized its longstanding global presence in the optical manufacturing industry, with over 700 patents and ten manufacturing facilities worldwide. The company remains committed to expanding its U.S. operations and continuing its involvement in federally funded and private fiber broadband projects across the country. STI’s leadership reiterated their dedication to the U.S. market and to upholding high ethical standards as they move forward with their appeal.

Key Points:

• STI to appeal federal court verdict in a lawsuit filed by Prysmian Cables & Systems.
• Court dismissed all but two of Prysmian’s claims during the three-year litigation.
• STI has a strong global presence with 700 patents and ten manufacturing facilities.
• The company is committed to expanding its U.S. operations and participating in broadband projects.
• STI continues to support its U.S. employees, distributors, and customers.

“We believe the verdict is not supported by the testimony and evidence presented at the trial and intend to appeal and vigorously pursue all available post-trial remedies,” said Ankit Agarwal, Managing Director, STL.

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Quantum Circuits Secures $60M or Error-Detecting Qubits

Quantum Circuits, a spinout from Yale University specializing in superconducting quantum computing, has closed its Series B funding round with more than $60 million. This final investment round aims to advance the company's efforts to commercialize its quantum systems, which feature an industry-first: a powerful qubit with built-in error detection, addressing one of the critical challenges in quantum computing—error correction.

The funding round was led by ARCH Venture Partners, F-Prime Capital, Sequoia Capital, and Hither Creek Ventures, with participation from several other investors including Canaan Partners and In-Q-Tel. The new capital follows the recent hiring of Ray Smets as President and CEO, and will support the company's go-to-market plans and customer engagement strategies.

Investment Total: Over $60 million in Series B funding.

Lead Investors: ARCH Venture Partners, F-Prime Capital, Sequoia Capital, Hither Creek Ventures.

Technology Focus: Superconducting quantum computing with built-in error detection.

Recent Leadership: Ray Smets appointed as President and CEO.

Core Innovation: Industry-first dual-rail qubit with error detection, aimed at scalable, reliable quantum computing.

"By putting the power of error detection and real-time control into the hands of algorithm developers, we will accelerate their ability to create new solutions and achieve better results needed for commercial applications," said Ray Smets, CEO of Quantum Circuits.

https://quantumcircuits.com/quantum-circuits-secures-series-b-investment/

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Key Observations from Cisco's Q4 2024 Analyst Call

 Following Cisco Systems' release of its financial results on August 14th, key observations from the subsequent market analyst call provide insight into the company’s performance, strategic shifts, and future outlook. Cisco reported strong fourth-quarter results for fiscal year 2024, with $13.6 billion in revenue, surpassing its guidance range. The company demonstrated robust demand across its product lines, particularly in security, AI infrastructure, and observability, while also outlining a strategic restructuring plan aimed at driving growth in high-priority areas such as AI, cloud, and cybersecurity.

During the call, Cisco execs highlighted robust performance in its security, AI infrastructure, and observability segments. The integration of Splunk into Cisco's broader portfolio was a significant contributor to this success, with Splunk adding $960 million in revenue for the quarter. Cisco's gross margin reached 67.5%, the highest in 20 years, reflecting the strong impact of this acquisition. The company also announced a strategic restructuring plan that includes a 7% workforce reduction, aimed at reallocating resources toward high-growth areas such as AI, cloud, and cybersecurity.

A notable theme throughout the call was Cisco's focus on AI. The company has crossed $1 billion in AI-related orders from web-scale customers and expects an additional $1 billion in fiscal year 2025. Cisco's AI-driven products, including Hypershield, are expected to enhance its position in the market as enterprises increasingly modernize their infrastructure to support AI applications. The company also emphasized the normalization of customer inventory levels, signaling the end of a challenging period of inventory digestion.

Some observations from the call:

Subscription Revenue: Subscription revenue accounted for 56% of Cisco's total revenue in Q4 2024.

Splunk Contribution: Splunk integration contributed $960 million in revenue for Q4, with continued double-digit ARR growth.

AI Infrastructure Investments: Strong demand for AI-related infrastructure, with double-digit growth in data center switching.

Security Product Orders: Security product orders grew by double digits, driven by competitive wins and new solutions like XDR and Secure Access.

Wireless Order Growth: Wireless product orders exceeding $1 million increased by over 20% year-over-year.

Gross Margin: Cisco achieved a product gross margin of 67% and a services gross margin of 70.3% in Q4.

Operating Cash Flow: Cisco generated $3.7 billion in operating cash flow during Q4 2024.

Shareholder Returns: Cisco returned $3.6 billion to shareholders through dividends and share repurchases in Q4, totaling $12.1 billion for FY24.

Public Sector Demand: Public sector demand increased by 20% year-over-year, with strong federal spending in the U.S. and growth in APJC (Asia Pacific, Japan, and China).

Enterprise Demand: Enterprise demand rebounded with 13% growth, showing strength across all geographies, particularly in APJC.

Service Provider and Cloud: Service provider and cloud product orders grew by 5%, with notable strength in EMEA (Europe, Middle East, and Africa).

AI Orders: Cisco secured over $1 billion in AI-related orders from web-scale customers and expects another $1 billion in FY25.

Platform Deals: Cisco signed several nine-figure platform deals, including a significant agreement with a global logistics company to modernize its AI-powered supply chain.

Observability Growth: Observability product revenue grew 41% year-over-year, with contributions from Splunk, ThousandEyes, and Cisco’s observability suite.

Networking Segment: Cisco's networking segment revenue declined by 28% year-over-year, impacted by comparisons to a strong Q4 2023 driven by backlog clearance.

Hypershield Launch: Cisco introduced Hypershield, an AI-native cybersecurity solution, expected to be available in the fall of 2024.

R&D Focus: Over 50% of Cisco’s R&D spend is now focused on AI, cloud, and cybersecurity.

AI-Specific Orders: Cisco's partnerships with top hyperscalers are driving AI-related orders, including design wins that are expected to convert into significant revenue.

Customer Inventory Levels: Cisco confirmed that customer inventory levels have normalized, ending a period of inventory digestion that had affected order flow.

Long-Term Revenue Headwind: Cisco acknowledged a revenue headwind for FY25 due to a strong backlog shipment in Q1 FY24, which will not be repeated.

Global Revenue Performance: Revenue growth was observed across all geographic segments, with the Americas up 15%, EMEA up 12%, and APJC up 16%.

Product Recurring Revenue: Product annual recurring revenue (ARR) grew by 43% with Splunk and by 9% excluding Splunk.

Sales Strategy Shift: Cisco's sales strategy is increasingly focused on cross-portfolio sales, leveraging the combined strengths of Cisco and Splunk to win large enterprise deals.

Workforce Reduction: The restructuring plan, impacting approximately 7% of the workforce, or 7,000 employees, is aimed at reallocating resources toward AI, cloud, and cybersecurity initiatives. Some of the restructuring involves moving some operations to lower-cost location.

Fiscal Year Guidance: For fiscal year 2025, Cisco expects revenue in the range of $55 billion to $56.2 billion, with non-GAAP EPS between $3.52 and $3.58.

A replay of the call is available on the company's investor relations web site.

https://investor.cisco.com/home/default.aspx

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ZTE Sees 4.8% Profit Increase in H1 2024, Expands AI and 5G

ZTE Corporation announced its financial results for the first half of 2024, reporting revenue of RMB 62.49 billion (approximately USD 8.63 billion), a 2.9% increase year-on-year, and a net profit of RMB 5.73 billion (approximately USD 791 million), up 4.8% from the same period last year. Despite global challenges, ZTE experienced significant growth in its government-enterprise and consumer businesses, with revenues rising by 56.1% and 14.3%, respectively. The company also invested heavily in research and development, with R&D expenses totaling RMB 12.73 billion (approximately USD 1.76 billion), representing 20.4% of its operating revenue.

ZTE continued to innovate in the connectivity and computing sectors, achieving strong international growth and expanding its presence in emerging technologies such as AI, 5G-A, and optical networks. The company remains focused on enhancing its market competitiveness and is committed to further strengthening its digital and intelligent infrastructure. As ZTE advances its global strategy, it aims to build on its success by pursuing new opportunities and partnerships across various sectors.

• H1 2024 revenue: RMB 62.49 billion (approx. USD 8.63 billion), up 2.9% year-on-year.
• Net profit: RMB 5.73 billion (approx. USD 791 million), a 4.8% increase from the previous year.
• Government-enterprise and consumer business revenues grew by 56.1% and 14.3%, respectively.
• R&D expenses reached RMB 12.73 billion (approx. USD 1.76 billion), 20.4% of operating revenue.
• Significant focus on AI, 5G-A, and optical networks.

“We remain committed to technological innovation and the synergy of ‘connectivity + computing,’ contributing to stable overall performance and growth,” stated a ZTE spokesperson.

https://www.zte.com.cn/global/about/news/zte-reports-h1-revenue-of-rmb-6249-billion-and-net-profit-of-rmb-573-billion.html

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Deutsche Telekom IoT subsidiary joins Bridge Alliance

Deutsche Telekom’s IoT subsidiary has joined the Bridge Alliance, a business consortium of 35 mobile communications companies spanning Asia Pacific, the Middle East, Africa, and now Europe. Bridge Alliance offers connectivity and integrated IoT/M2M services to its members, enabling flexible solutions tailored to international customer needs. Deutsche Telekom, now the first European telecommunications company in this alliance, integrates its IoT subsidiary within T Business, its business customer division.  

By joining Bridge Alliance, Deutsche Telekom expands its reach, providing global companies with seamless access to the Asia-Pacific region. This partnership marks a significant step in Telekom’s IoT division’s strategy to become a global connectivity provider.

“We are very pleased to now be a strong partner for the Bridge Alliance. We are pooling the know-how and technical expertise of all members. Together, we always offer our customers the best connectivity solution for their global challenge,” emphasizes Dennis Nikles, Managing Director of Deutsche Telekom IoT. “For companies from the Asian region, it is now even easier to do IoT business in Europe. This is particularly interesting for the growing market of Asian electric vehicles in Europe. But European customers also benefit. A strong global offering - all under one contract, one management and one globally standardized service.” Local partners in the countries facilitate local customer support.

iot.telekom.com

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SiFive’s 256-Core RISC-V Processor for AI-Powered Datacenters

SiFive launched its new Performance P870-D processor, designed to meet the growing demands of AI and high-performance computing in datacenters, vehicles, and embedded systems. The P870-D builds on the success of the P870, offering enhanced compute density, scalability, and energy efficiency, crucial for handling parallelizable infrastructure workloads such as video streaming, storage, and web applications. By leveraging SiFive’s RISC-V architecture, the P870-D processor delivers powerful solutions tailored to the needs of modern AI workloads.

The P870-D supports up to 256 cores and integrates industry-standard protocols, enabling datacenter architects to build scalable and coherent systems. This new processor is not only designed for high performance but also emphasizes cost-efficiency and sustainability, aligning with the industry’s shift towards more energy-efficient computing. SiFive has also added advanced Reliability, Availability, and Serviceability (RAS) features to ensure system reliability and data integrity, essential for mission-critical applications.

Key features include:

• Scalability up to 256 cores for high-performance computing on demand.
• Full compatibility with the RVA23 profile, enhancing software support and reducing development costs.
• Support for the RISC-V Sv57 extension, enabling 57-bit virtual address space.
• Integration of 4 CHI ports/clusters for expanded peripheral and memory device connectivity.
• Advanced Interrupt Architecture (AIA) with support for Message Signal Interrupts (MSI) and virtualization.

The P870-D processor is currently sampling to lead customers, with full production expected by the end of 2024.

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Akeana Emerges from Stealth with RISC-V Portfolio

Akeana, a start-up based in Santa Clara, California, emerged from stealth to unveil its RISC-V portfolio. The company has raised over $100 million in capital from prominent investors like Kleiner Perkins, Mayfield, and Fidelity. Formed by the team behind Marvell's ThunderX2 server chips, Akeana aims to challenge the dominance of legacy vendors and architectures such as Arm by offering customizable processors that exceed current performance benchmarks. The company has introduced a comprehensive range of IP solutions designed to cater to various workloads and applications, with a focus on equitable licensing options.

Akeana’s portfolio includes:

• Akeana 100 Series: Configurable 32-bit RISC-V processors designed for a wide range of applications, from embedded microcontrollers to edge gateways and personal computing devices.
• Akeana 1000 Series: 64-bit RISC-V processors with features like MMU, multi-threading, and AI computation extensions, ideal for rich operating systems and low-power applications.
• Akeana 5000 Series: High-performance 64-bit RISC-V processors optimized for demanding applications in next-gen devices, data centers, and cloud infrastructure, offering industry-leading single-thread performance.
• Processor System IP: Includes essential IP blocks for creating processor SoCs, such as Coherent Cluster Cache and I/O MMU, as well as Scalable Mesh and Coherence Hub IPs for large coherent compute subsystems.
• AI Matrix Computation Engine: A specialized engine designed to accelerate AI by offloading Matrix Multiply operations, configurable for various data types and optimized for data sharing.

https://www.akeana.com/

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HPE to acquire Morpheus Data for Hybrid Cloud Mgt

Hewlett Packard Enterprise (HPE) agreed to acquire Morpheus Data, a leading provider of hybrid cloud management and platform operations software. This acquisition is a strategic move to enhance HPE GreenLake by integrating Morpheus' capabilities, further simplifying the management of complex, multi-vendor IT environments. The move underscores HPE's commitment to expanding its hybrid cloud operations and solidifying HPE GreenLake as the go-to platform for enterprises navigating the challenges of hybrid IT infrastructures.

Key Highlights:

Enhanced Hybrid Cloud Management: Morpheus will bring multi-vendor, multicloud application provisioning, orchestration, and automation to HPE GreenLake.

FinOps Capabilities: The acquisition will boost HPE’s ability to optimize cloud costs through advanced FinOps features.

Strategic Integration: This follows HPE's acquisition of OpsRamp in 2023, further strengthening its IT operations management portfolio.

Future-Proofing IT: HPE GreenLake aims to be the platform of choice for managing virtualized, cloud-native, and AI workloads across diverse environments.

Expected Closing: The transaction is anticipated to close in the fourth quarter of HPE’s 2024 fiscal year, with Morpheus Data’s technology integrated into HPE’s offerings while remaining available as standalone software.

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SpaceX Launches Maxar's 3rd and 4th WorldView Satellites

Maxar successfully launched its third and fourth WorldView Legion satellites aboard a SpaceX Falcon 9 rocket from Cape Canaveral Space Force Station, Florida. These satellites have begun communicating with Maxar’s ground teams and are now undergoing the commissioning process, with the first images expected in early fall. Positioned in mid-inclination orbit (MIO), these satellites will significantly boost Maxar’s ability to capture high-resolution, 30 cm-class imagery throughout the day, especially in regions frequently affected by weather events such as morning fog. These WorldView Legion satellites are equipped with advanced optical instruments from RTX's Raytheon, enabling them to capture the high-resolution 30 cm-class imagery that Maxar is known for, further enhancing their geospatial intelligence capabilities.

With the addition of these two satellites, Maxar’s constellation now consists of eight satellites in orbit, including four next-generation WorldView Legion satellites. The enhanced capacity provided by these satellites will enable Maxar to meet the growing global demand for high-resolution data. The company is set to launch the remaining two satellites in this block later this year, further expanding its ability to deliver real-time geospatial intelligence to both government and commercial customers.

• Third and fourth WorldView Legion satellites launched aboard SpaceX Falcon 9.
• Satellites positioned in mid-inclination orbit to enhance dawn-to-dusk imaging.
• First images from the new satellites expected in early fall 2024.
• Maxar’s constellation now includes eight operational satellites.
• Additional two WorldView Legion satellites to be launched later this year.

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Zayo Report Reveals 106% Surge in DDoS Attacks

 Zayo released its latest Distributed Denial of Service (DDoS) Insights Report, revealing a significant surge in cyber threats. The report shows a staggering 106% increase in DDoS attack frequency compared to the second half of 2023. Additionally, the average duration of these attacks has risen to 45 minutes, an 18% increase from last year, costing unprotected organizations approximately $270,000 per attack. The growing sophistication of AI-driven, bot-based attacks has made it easier for attackers to launch more frequent, sustained, and high-impact assaults across various industries.

The report highlights the pervasive impact of AI in escalating the scale and scope of DDoS attacks. For the first time, industries such as HR, legal, consulting, and transportation have emerged as top targets for the largest DDoS attacks. Zayo warns that if this trend continues, DDoS attacks could rise by another 24% by the end of the year. The report underscores the importance of adding protection to tech stacks as the primary defense against these increasingly persistent and frequent attacks.

Key Findings:

• Telecommunications remains the most targeted industry, accounting for 57% of all attacks, followed by education (19%), manufacturing (5%), and cloud/SaaS (5%).
• Manufacturing has overtaken retail as the industry facing the largest DDoS attacks, with a 308% increase in attack duration and a 200% increase in attack size compared to 2023.
• Healthcare saw a 128.5% rise in attack frequency, placing it among the most affected industries.
• Government entities experienced the longest-duration attacks, averaging over six hours, a 41% increase from H1 2023.

To view the full report and learn more about how Zayo can help protect your business from cyber attacks, visit Zayo's DDoS Insights Report.

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Dell'Oro: Lowered Forecast for Mobile Backhaul Transport

Demand for mobile backhaul transport equipment is projected to be $24.5 billion over the next five years. This figure represents the cumulative amount of transport systems that will be deployed from 2024 through 2028, according to a new report from Dell'Oro Group.

“We lowered the near-term forecast by approximately 6 percent since 5G rollouts have dramatically slowed at some operators while others are delaying deployments,” said Jimmy Yu, Vice President of Dell’Oro Group. “However, we believe that all operators will eventually roll out 5G to its fullest potential. Therefore, we believe the 5G build cycle will be more gradual and calculated. Thus, we have transplanted the reduction in mobile backhaul demand forecasted in 2024 and 2025 to the outer years of the forecast time period, creating a more moderate rise in demand over the next five years,” added Yu.

Additional highlights from the Microwave Transmission & Mobile Backhaul 5-Year Forecast July 2024 Report:

• Demand for mobile backhaul equipment, consisting of both wireless and fiber systems, to be used in 5G networks is forecast to grow at a five-year compounded annual growth rate (CAGR) of 13 percent.
• Use of Wireless Systems for backhaul is projected to grow at a higher rate than Fiber Systems in the next five years since more mobile radio deployments are expected to occur in countries that mostly use point-to-point microwave transmission systems for mobile backhaul.

https://www.delloro.com/news/mobile-backhaul-transport-market-forecasted-to-be-24-5-billion-over-next-five-years/

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Dell'Oro: Dropping Prices and Lower Demand for WLAN

 Wireless LAN (WLAN) revenues are expected to drop 13 percent in 2024, with lower prices exacerbating depressed demand, according to a new report from Dell'Oro Group.  Meanwhile, vendors sensitive to eroding prices are cutting back on some functions of their Wi-Fi 7 APs, and this is expected to increase the adoption of the new technology over the next five years.

“The digestion of previous WLAN shipments and the cautiousness of some enterprises due to macro-economic conditions has caused a dramatic drop in revenues in the past two quarters,” said Siân Morgan, Research Director at Dell’Oro Group. “We expect to see signs of recovery in 4Q 2024 once excess inventory is flushed through the system, and the market returns to demand-driven dynamics.

“IT budgets are stretched. On one hand, enterprises are under pressure to figure out how Generative AI can revolutionize their businesses. On the other hand, companies need highly performing networks to enable digital transformations. Vendors sensitive to these pressures are releasing cost-effective Wi-Fi 7 APs which will help accelerate the adoption of this latest generation of Wi-Fi,” added Morgan.

Additional highlights from the Wireless LAN 5-Year July 2024 Forecast Report:

• AIOps features are driving up license revenues and delivering significant value to enterprises facing labor difficulties.
• Wi-Fi 6E adoption is still growing but will be eclipsed by Wi-Fi 7 in 2025.
• If the closing of HPE’s acquisition of Juniper Networks is delayed due to regulatory concerns, WLAN revenues could suffer as enterprises opt to wait before buying.
• The first AP shipments of the standard expected to be branded as ‘Wi-Fi 8’ are expected in 2028 and will be focused on increasing reliability instead of expanding capacity.

https://www.delloro.com/news/cost-effective-wi-fi-7-models-will-drive-new-technologys-adoption-over-next-five-years/

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POET highlights partnerships with FIT and Luxshare in Q2 report

POET Technologies  reported its second-quarter 2024 financial results, highlighting  key partnerships that are driving its penetration into AI markets. Among the notable developments is a major design win with Foxconn Interconnect Technology (FIT) and an expanded partnership with Luxshare Tech, both of which are expected to significantly bolster POET’s market presence in high-speed optical solutions.

In addition to these strategic partnerships, POET also reported raising substantial capital through private placements and direct offerings, bringing its cash balance to $28.7 million as of July 31, 2024. This financial strength, combined with industry recognition such as the "Best Optical AI Solution" award from AI Breakthrough, positions POET for accelerated growth and product deployment.

Key Highlights:

• Partnership with Foxconn Interconnect Technology (FIT): Supplying 800G and 1.6T optical engines for high-speed data center networks and AI applications.
• Expanded Partnership with Luxshare Tech: Developing additional optical module products for AI networks, incorporating POET’s high-speed optical engines.
• Financial Performance: Reported a net loss of $8.0 million for Q2 2024, with a  cash position of $28.7 million as of July 31, 2024.
• Capital Raising: Secured $35.7 million through multiple private placements and direct offerings, strengthening financial stability.

https://poet-technologies.com/news.html

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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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