AT&T deal with AST SpaceMobile to provide wireless service from space

AT&T and satellite network provider AST SpaceMobile are teaming up to provide wireless service from space — a challenge to Elon Musk’s SpaceX, which struck a similar deal two years ago with T-Mobile US.  AT&T and AST SpaceMobile formalized the partnership following an earlier testing period. They said on Wednesday that their agreement to build a space-based broadband network will run through 2030.

AT&T head of network Chris Sambar will join the AST SpaceMobile board, deepening a relationship that dates back to at least 2018. Sambar said in an interview that his team is confident in AST SpaceMobile’s technology, as demonstrated by the performance of the BlueWalker 3 test satellite. The relationship is moving from “loose partner to a strategic partner,” he said.

Wireless providers are in a race to offer connections for the world’s estimated 5 billion mobile phones when those devices are in remote areas beyond the reach of cell towers. For consumers, these services hold the promise of connectivity along rural roads and in places likes national parks. The service is typically marketed as a supplement to standard wireless coverage.

The new satellite network will work with ordinary mobile phones, offering a level of convenience that’s lacking in current call-via-satellite services, which require the assistance of bulky specialized equipment.

“Space-based direct-to-mobile technology is designed to provide customers connectivity by complementing and integrating with our existing mobile network,” said Jeff McElfresh, Chief Operating Officer, AT&T. “This agreement is the next step in our industry leadership to use emerging satellite technologies to provide services to consumers and in locations where connectivity was not previously feasible.”

“Working together with AT&T has paved the way to unlock the potential of space-based cellular broadband directly to everyday smartphones. We are thrilled to solidify our collaboration through this landmark agreement,” said Abel Avellan, AST SpaceMobile Founder, Chairman, and CEO. “We aim to bring seamless, reliable service to consumers and businesses across the continental U.S., transforming the way people connect and access information.”

AST SpaceMobile this summer will send five satellites to Cape Canaveral, Florida, for launch into low Earth orbit. AT&T’s Sambar didn’t say when service to customers might begin. “This will be a full data service, unlike anything you can get today from a low-Earth orbit constellation,” Sambar said.

T-Mobile is working with the low-Earth orbiting Starlink service from Musk’s Space Exploration Technologies Corp. The mobile carrier earlier said that its calling-via-satellite service could begin this year.

SpaceX has roughly 6,000 satellites aloft in low-Earth orbit — far more than any other company. The trajectory, with satellites circling near the Earth’s surface, allows communications signals to travel quickly between spacecraft and a terrestrial user.

SpaceX in January launched its first set of satellites capable of offering mobile phone service. The service “will allow for mobile phone connectivity anywhere on Earth,” Musk said in a post on X, the social network formerly known as Twitter, though he added that technical limitations mean “it is not meaningfully competitive with existing terrestrial cellular networks.”

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About AST SpaceMobile

AST SpaceMobile, Inc. is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio, and designed for both commercial and government applications. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today’s five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTubeX (formerly Twitter)LinkedIn and Facebook. Watch this video for an overview of the SpaceMobile mission.

References:

https://www.bloomberg.com/news/articles/2024-05-15/at-t-strikes-space-broadband-deal-in-challenge-to-musk-s-spacex

https://about.att.com/story/2024/ast-spacemobile-commercial-agreement.html

AST SpaceMobile: “5G” Connectivity from Space to Everyday Smartphones

AST SpaceMobile achieves 4G LTE download speeds >10 Mbps during test in Hawaii

AST SpaceMobile completes 1st ever LEO satellite voice call using AT&T spectrum and unmodified Samsung and Apple smartphones

AST SpaceMobile Deploys Largest-Ever LEO Satellite Communications Array

 

 

An IEEE Communications Resource Designed for Telecom Engineers

by Danielle Novello, IEEE Associate Marketing Manager (edited by Alan J. Weissberger)

IEEE DiscoveryPoint for Communications is a machine-learning-powered, all-in-one platform specifically designed for engineers in the telecommunications industry.

Engineers designing communications products need access to the most up-to-date information—the latest research, lists of parts and components, and technical standards to help ensure that their design will work correctly and integrate seamlessly with other elements in the system. However, tracking down resources across multiple websites can be very time-consuming, the material might not be relevant or the sources could be questionable.

The IEEE DiscoveryPoint for Communications platform aims to solve those problems by providing one-stop access to searchable, curated content from trusted sources on just about any telecommunications topic. The platform library contains:

  • More than 1.4 million full-text research documents.
  • 14,000 technical standards.
  • 7,500 online courses.
  • 1,300 ebook titles.
  • 18.4 million parts and components data from manufacturers and distributors.
  • 1,300 industry and product news sources, blogs, and white papers.

The documents in our library are sourced from reputable publishers, including AT&T, the IEEE Xplore Digital Library, River Publishers, and John Wiley & Sons, Inc, ensuring the highest quality and reliability of the content. 

IEEE standards are also included in the library. The IEEE Standards Association has developed more than 900 communications related standards, including the popular IEEE 802.11 WiFi and IEEE 802.3 Ethernet standards.

With a single query users can find answers to technical questions by referencing relevant content from multiple high-quality sources, including full-text IEEE publications and standards.  IEEE DiscoveryPoint returns only the most applicable information to user search queries and then organizes the results in resource-specific channels, making it easier to browse different content types cohesively. It can also help accelerate project workflow with time-saving tools such as custom dashboards, alerts, saved searches, bookmarks, and collaboration tools to work through projects in less time and avoid duplicative queries.

“There’s nothing on the market right now that fully supports the design engineer’s workflow and delivers all the information needed in one place,” says Mark Barragry, senior product manager for corporate markets at IEEE Global Products and Marketing.

In designing IEEE DiscoveryPoint, Barragry comments, “We reconstructed the work process of a product design engineer and put together a set of resources that meet all the information needs they would have during a standard product-development cycle.”  Barragry adds that design engineers who tested the platform before launch said they liked that it came from IEEE, a trusted source.

The subscription-based product’s intuitive search engine saves users time by zeroing in on key concepts related to the topic they’re searching for. To get started, the user types a word, phrase, concept, the name of an author or company, or another term into the search bar. The search engine’s ranking algorithm analyzes the documents’ full text and metadata to find relevant material.

The results are organized into curated channels and categorized by resource types, such as research papers, standards, books, or industry news. For each search result, a machine-learning feature examines the document and generates a short summary of key points highlighted in the document. This solution allows time-strapped engineers to find relevant information more efficiently. 

In one testimonial about IEEE DiscoveryPoint, a director of technology development said, “I really appreciated the thought that went into this product. It’s an unmet need for people like me.”

Subscription prices depend on the size of the organization and the number of engineers and technical professionals using it. Contact us to learn more.

References:

https://discoverypoint.ieee.org/

https://innovate.ieee.org/introducing-ieee-discoverypoint-for-communications/

Practical Applications of IEEE DiscoveryPoint for Communications (IDPC)

 

e& UAE sets new world record with fastest 5G speed of 30.5Gbps

e& UAE network operator today announced registering the world’s fastest recorded speed of 30.5Gbps on its live 5G network, marking a significant milestone in its evolution towards 5G-Advanced. This global achievement was unveiled during a demonstration held at SAMENA Leaders’ Summit 2024, showcasing the successful aggregation of multiple carriers across high-band and mid-band spectrums (1600 MHz in mmWave and 300MHz in C-band), with network speeds reaching 30.5Gbps. This achievement underscores e& UAE’s commitment to delivering unparalleled user experiences, ensuring seamless connectivity to meet the increasing demand for a broad spectrum of digital services.

Khalid Murshed, Chief Technology and Information Officer of e& UAE, said, “We are thrilled to announce e& UAE’s achievement of the world’s fastest 5G network speed. With this accomplishment, we are poised to unleash the boundless potential of 5G technology, empowering innovative services and applications that will transform the fabric of society and the economy. “Aligned with the UAE’s ambitious digital agenda, e& UAE’s continuous investment in its network and technologies underscores its commitment to delivering premium digital services. By adopting the latest 5G solutions, we are providing our customers with premium digital experiences today but also paving the way for the 6G era by 2030 in line with the UAE’s recently unveiled 6G Roadmap by TDRA.”

As the demand for advanced network capabilities continues to surge, e& UAE is poised to revolutionize the landscape of connectivity in the UAE. This vision integrates state-of-the-art technologies and innovative services, including network slicing, private 5G network, RedCap, mobile VPN, and premium Fixed Wireless Access (FWA) leased lines, offering a superior experience for consumers, home, and enterprise customers alike. e& UAE has also harnessed the power of AI to deliver seamless and personalized experiences to every customer.

AI technologies will spearhead intelligent energy-saving and smart network planning initiatives, driving environmental responsibility and technological excellence to new heights. This monumental achievement solidifies e& UAE’s position as a trailblazer in the telecommunications industry, reaffirming its dedication to pushing the boundaries of innovation and delivering connectivity solutions for the digital era.

References:

https://www.wam.ae/en/article/b34rucp-uae-sets-new-world-record-with-fastest-speed

UAE network operator “etisalat by e&” achieves 5G mmWave distance milestone

UAE’s “etisalat by e&” announces first software defined quantum satellite network

du (UAE) deploys Microchip’s TimeProvider 4100 Grandmaster clock for advanced 5G network services

Nokia and du (UAE) complete 5G-Advanced RedCap trial; future of RedCap?

UScellular adds NetCloud from Cradlepoint to its 5G private network offerings; Buyout coming soon?

UScellular has added NetCloud Private Networks from Cradlepoint (part of Ericsson) to expand its portfolio of private cellular solutions. The company now offers Ericsson Private 5G and Ericsson’s Mission Critical Networks to its customers. By building on these capabilities, UScellular is able to support even more customers across varying areas of business.

Some existing private cellular network ecosystems are pulled together piece by piece from different providers, which requires additional training and agreements. This makes it difficult for enterprise IT teams to have seamless visibility across the entire network. NetCloud Private Networks is an end-to-end private cellular network solution that removes these complexities to simplify building and operating 5G private networks.

“With the addition of NetCloud Private Networks to our portfolio, we can better address business challenges for customers of all sizes to connect business, industry and mission critical applications,” said Kim Kerr, senior vice president, enterprise sales and operations for UScellular. “The agility, flexibility and scalability of NetCloud Private Networks helps improve coverage, security, mobility, and reliability for applications where Wi-Fi may not be enough.”

NetCloud Private Networks supports enterprises who need more scalable, reliable and secure connectivity than they are getting today with traditional Wi-Fi solutions. There is significant opportunity in warehouses, logistics facilities, outdoor storage yards, manufacturing and retail operations environments to provide more connectivity. This will alleviate manual work, improve safety, and provide increased visibility.

“UScellular is a leader in this space by showing how a public carrier enhances the value of private network solutions,” said Manish Tiwari, head of private cellular networks, Cradlepoint and Ericsson Enterprise Wireless Networks.

“By adding NetCloud Private Networks to their portfolio of Ericsson private networks solutions, UScellular unlocks new opportunities for organizations to have local network coverage and address their reliability and security challenges. With solutions available to cater to both OT and IT in industrial and business environments, their customers have a choice in adopting the right private network solution for their use-cases with secure, policy-based wireless connectivity at scale.”

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Separately,  The Wall Street Journal reported Thursday that T-Mobile is seeking to buy $2 billion worth of UScellular and take over some operations and wireless spectrum licenses. A deal could be announced this month, according to people familiar with the matter.

Meanwhile, Verizon is considering a deal for some of the rest of the company which is 80% owned by Telephone & Data Systems (TDS).   Last year, TDS put the wireless company’s operations up for sale, as it struggled with competition from national wireless telco rivals and cable-broadband providers.

Verizon is the biggest U.S. cellphone carrier by subscribers, while T-Mobile became the second largest soon after it bought rival Sprint. T-Mobile gained more customers this month after it completed its purchase of Mint Mobile, an upstart brand.

The rising value of wireless licenses is a driving force behind the deal. U.S. Cellular’s spectrum portfolio touches 30 states and covers about 51 million people, according to regulatory filings.

U.S. companies have spent more than $100 billion in recent years to secure airwaves to carry high-speed fifth-generation, or 5G, signals and are hunting for more. But the Federal Communications Commission has lacked the legal authority to auction new spectrum for more than a year. The drought has driven up the price of spectrum licenses at companies that already hold them.

The U.S. wireless business has also matured: Carriers have sold a smartphone subscription to most adults and many children, which leaves less room for expansion as the country’s population growth slows. AT&T and Verizon have meanwhile retreated from expensive bets on the media business to focus on their core cellphone and home-internet customers.

A once-crowded field of small, midsize and nationwide cellphone carriers in the U.S.  is now split among Verizon, T-Mobile and AT&T, leaving few players left to take over. As one of the last pieces left on the board, U.S. Cellular has long been an attractive takeover target. For many years, the home of the Chicago White Sox has been UScellular field.

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About UScellular:

UScellular offers wireless service to more than four million mostly rural customers across 21 states from Oregon to North Carolina. It also owns more than 4,000 cellular towers that weren’t part of the latest sale talks. The company has a market value of about $3 billion.

UScellular provides a range of solutions from public/private hybrid networks, MVNO models, localized data (aka CUPS) and custom VPN approaches. Private 5G offers unparalleled reliability, security and speed, enabling seamless communication and automation. For more information:

https://business.uscellular.com/products/private-cellular-networks/

References:

https://www.prnewswire.com/news-releases/uscellular-adds-cradlepoint-to-its-private-cellular-network-portfolio-302140782.html

https://www.wsj.com/business/telecom/t-mobile-verizon-in-talks-to-carve-up-u-s-cellular-46d1e5e6

Betacom and UScellular Introduce 1st Private/Public Hybrid 5G Network

Highlights of 3GPP Stage 1 Workshop on IMT 2030 (6G) Use Cases

This 3GPP May 8-10,2024 workshop held in Rotterdam, Nederlands brought the 3GPP community closer to the initiatives of regional and global research organizations, market partners (MRPs), operators’ associations and the ITU.

The workshop presented the opportunity for different communities to share their views on 6G/IMT2030 Use Cases. Those communities are Operators; Verticals; Regional Alliances and ITU.

The workshop was co-chaired by Mr. Jose Almodovar, SA1 Chair, and by Mr. Puneet Jain, SA Chair. It was supported by ETSI MCC, coordinated by Mr. Alain Sultan.

3GPP WG SA1 now has the task to define the 6G stage 1 requirements to be met by future 3GPP specifications.

Among the more important sessions were:

Day 1: Opening, Operators, Verticals

Speakers: Puneet Jain (Intel), SA Chair and Jose Almodovar (TNO), SA1 Chair


Operators:

Panel#1: “6G Drivers for Operators”

Moderator: Balazs Bertenyi (Nokia)
Panellists: Scott Migaldi (T-Mobile USA), Eric Hardouin (Orange), Xu Xiaodong (CMCC), Minsoo Na (SK Telecom), Shin-Ichi Isobe (NTT DoCoMo)

Panel#2 :  “6G Drivers for Verticals” 

Moderator: Toon Norp (KPN), former SA1 Chair
Panellists: Maxime Flament (5GAA), Andreas Müller (Bosch), Jordi Gimenez (5G-MAG), Nicolas Chuberre (Thales), Tero Pesonen (TCCA), Bruno Tomas (WBA)

 

Panel #2

Potential Drivers for 6G include:

•Security. Used in different contexts, both about network security and user data confidentiality (interesting to note that 5G Security is not widely deployed. It requires a 5G SA network few of which are commercially available).

• Maintaining continuity of service and robust security, especially crucial in times of crisis

• Identify all relevant new threat-factors for 6G, and develop mitigation solution (e.g. detection and protection against electromagnetic threats)

• Quantum-safe security mechanisms

• Network-design/performance: network optimization and automation (Intelligent Network management, Network Performance)

• Energy efficiency/saving/ sustainability

• AI-assisted air interface/ Radio Performance

• AI for improving positioning

• Enabling AI at the application level

• AI data management, model distribution for all AI-assisted “smart” areas (cities, industries, surgeries, robot control, manufacturing plant, rescue missions etc.

• AI as a Service (AIaaS)

• To implement a range of media’s personalization and customization (sport TV program, etc)


ITU & 3GPP:

Panel#4: ITU & 3GPP synergies for 6G

Moderator: Giovanni Romano (Novamint), ITU/3GPP liaison officer
Panellists: Hiroyuki Atarashi (NTT DOCOMO), ITU-R WP 5D Chair, Puneet Jain (3GPP SA Chair – Intel), Peter Schmitt (3GPP CT Chair – Huawei), Wanshi Chen (3GPP RAN Chair – Qualcomm), Jose Almodovar (SA1 Chair – TNO)

Closing:

Speakers: Puneet Jain (Intel), SA Chair; Jose Almodovar (TNO), SA1 Chair; Alain Sultan (ETSI MCC), SA1 Secretary & 3GPP Work Plan Coordinator

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References:

https://www.3gpp.org/component/content/article/stage1-imt2030-uc-ws?catid=67&Itemid=101

https://www.3gpp.org/ftp/workshop/2024-05-08_3GPP_Stage1_IMT2030_UC_WS/Docs

https://www.3gpp.org/ftp/workshop/2024-05-08_3GPP_Stage1_IMT2030_UC_WS

NGMN issues ITU-R framework for IMT-2030 vs ITU-R WP5D Timeline for RIT/SRIT Standardization

IMT-2030 Technical Performance Requirements (TPR) from ITU-R WP5D

Juniper Research: Global 6G Connections to be 290M in 1st 2 years of service, but network interference problem looms large

Draft new ITU-R recommendation (not yet approved): M.[IMT.FRAMEWORK FOR 2030 AND BEYOND]

New ETSI Reports: 1.] Use cases for THz communications & 2.] Frequency bands of interest in the sub-THz and THz range

SK Telecom, DOCOMO, NTT and Nokia develop 6G AI-native air interface

Ericsson and IIT Kharagpur partner for joint research in AI and 6G

SK Telecom, Intel develop low-latency technology for 6G core network

ETSI Integrated Sensing and Communications ISG targets 6G

IEEE 5G/6G Innovation Testbed for developers, researchers and entrepreneurs

 

 

How Network Repository Function Plays a Critical Role in Cloud Native 5G SA Network

NRF (Network Repository Function) facilitates cloud-native 5G networks by enabling dynamic and efficient discovery of peer Network Functions, enhancing scalability.

Ajay Lotan Thakur

Introduction:

DNS (Domain Name Service) has been widely used by networks to discover 3G and 4G Network Functions (NFs). Every time there is a change in the network, this entails adding or updating records in the DNS server. This solution was not cohesive. The 5G Network Repository Function (NRF), which was introduced in the 5G specification, addresses this issue. Every Network Function needs to register its profile with NRF when it’s ready to service the APIs. Every NF type contains unique information in the NF profile. For example, Session Management Function (SMF) might provide the set of Data Network Names (DNN) it serves.

It’s important to note is that SMF may still choose User Plane Function (UPF) using proprietary logic because the UPF interface to NRF is still optional. In this article we shall see various advantages provided by 3GPP’s NRF network function over traditional 3G/4G networks.

Advantages of 5G NRFs:

Using 5G Network Resource Function (NRF) for discovering peer Network Functions (NFs) compared to relying on DNS servers in 4G networks brings several advantages:

  1. Efficiency in Resource Discovery: NRF offers a more efficient and dynamic way of discovering peer NFs within the network. Unlike DNS servers, which rely on static records and hierarchical lookup mechanisms, NRF enables direct discovery of available NFs, reducing latency and enhancing resource utilization. NRF can search the NFs based on many parameters like load, slice Ids, DNN name etc.
  2. Enhanced Security: NRF can incorporate security features such as authentication and authorization mechanisms, ensuring that only authorized NFs can be discovered and accessed. This helps in mitigating security threats such as DNS spoofing or cache poisoning, which are concerns in traditional DNS-based architectures.
  3. Support for Network Slicing: NRF is well-suited for 5G network slicing, where multiple virtualized networks coexist on the same physical infrastructure. It allows for efficient discovery and allocation of NFs specific to each network slice, enabling tailored services and resource optimization.
  4. Service Orchestration: NRF facilitates service orchestration by providing real-time information about the available NFs and their capabilities. This enables dynamic service composition and adaptation based on changing network conditions and application requirements. NRF can be used to put some of the NFs under maintenance mode as well.
  5. Low Latency: With NRF, the latency in discovering and connecting to peer NFs is significantly reduced compared to DNS-based approaches. This is crucial for applications requiring real-time communication or low-latency services, such as edge computing or autonomous vehicles. In case NRF is overloaded then it can scale-out to bring down the latency.
  6. Scalability: NRF architecture is designed to handle the scalability demands of 5G networks, where the number of NF instances and their dynamic nature can be high. It allows for efficient scaling of network resources without relying on centralized DNS servers, which may face scalability challenges under heavy loads.  This allows Network Functions to implement dynamic scale in & scale out without touching any DNS servers.
  7. Dynamic Network Updates: NRF supports dynamic updates of network information, allowing for real-time changes in the availability and status of NF instances. These are NRF notifications supported as per 3gpp specification.  In contrast, DNS records may require time to propagate changes across the network, leading to potential inconsistencies or delays in service discovery. Each NF can update its profile as and when it sees changes.

Conclusions:

Overall, leveraging NRF for NF discovery in 5G networks offers improved efficiency, scalability, low latency, security, and support for advanced network functionalities compared to relying solely on DNS servers in 4G networks.

References:

3GPP TS 23.501 – System Architecture for the 5G System

3GPP TS 29.510 – Network Function Repository Services

Building and Operating a Cloud Native 5G SA Core Network

GSA: More 5G SA devices, but commercial 5G SA deployments lag

Global 5G Market Snapshot; Dell’Oro and GSA Updates on 5G SA networks and devices

Ericsson Mobility Report touts “5G SA opportunities”

Analysys Mason: 40 operational 5G SA networks worldwide; Sub-Sahara Africa dominates new launches

Samsung and VMware Collaborate to Advance 5G SA Core & Telco Cloud

5G SA networks (real 5G) remain conspicuous by their absence

GSM 5G-Market Snapshot Highlights – July 2023 (includes 5G SA status)

 

About the Author:

Ajay Lotan Thakur, Senior IEEE Member, IEEE Techblog Editorial Board Member, BCS Fellow, TST Member of ONF’s open source Aether (Private 5G) Project, Cloud Software Architect at Intel Canada.

Blog post edited by Alan J Weissberger

GSA: More 5G SA devices, but commercial 5G SA deployments lag

Findings from the latest GSA report on the 5G standalone (SA) ecosystem include:

  • 1,764 announced devices with claimed support for 5G SA, up 43.7% from 1,227 at the end of 2022.
  • Devices with support for 5G SA account for 68.1% of all 5G devices, as of the end of March 2024, up from 43.3% in December 2019.
  • 97 modems or mobile processors/platform chipsets state support for 5G SA, 93 of which are understood to be commercially available.

5G mobile Communications Mast

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Other Estimates of deployed 5G SA core networks:

According to a recent LinkedIn post by Kaneshwaran Govindasamy, at least 49 network 29 have launched or deployed public 5 , one of which has only soft-launched their 5G SA networks.

A February 2024 report from Counterpoint Research in February 2024 states that only 55 operators have commercially implemented 5G SA, with many more in testing and trial stages.

As of January 2024, Dell’Oro Group has identified 50 5G SA enhanced Mobile BroadBand (eMMB) networks that have been deployed worldwide. Dell’Oro Group’s Research Director, Dave Bolan, stated that the build-out of 5G SA networks is slower than expected, and that the number of new 5G SA networks deployed in 2023 (12) was lower than in 2022 (18). However, Bolan predicts that 2024 will see more 5G SA launches than 2022, and that 5G SA launches will occur in almost all global markets except Africa.

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It should be noted that there is only one 5G SA network deployed in the U.S. from T-Mobile.  AT&T and Verizon have promised 5G SA for years but it’s not commercially deployed by either operator at this time.

5G SA networks support higher-density device deployments and improved network performance.  Without a 5G SA network, there are no 3GPP defined 5G features available, such as 5G Security, Network Slicing, MEC, etc.

References:

5G-Standalone April 2024 Member report

 

GSA 5G SA Core Network Update Report – Technology Blog

Building and Operating a Cloud Native 5G SA Core Network

Mobile Core Market Stagnant Due to Lack of 5G Standalone Deployments, According to Dell’Oro Group

Operator Transitions to 5G SA Core Decline YoY in 2023

https://www.ericsson.com/en/5g/5g-sa

 

 

 

 

Summit Broadband deploys 400G using Ciena’s WaveLogic 5 Extreme

Florida-based fiber optic telecommunications provider Summit Broadband has launched 400G services following a network upgrade with Ciena. Summit Broadband is leveraging Ciena’s WaveLogic 5 Extreme (WL5e) [1.] to offer 400 Gbps wavelength services to enterprise customers in Central and Southwest Florida, Ciena said last week.

Summit Broadband owns and operates over 4,300 fiber-route miles of infrastructure and serves industries and communities throughout the state with voice, video, data, internet, and Ethernet services, as well as dark fiber transport.

Note 1. Summit Broadband is deploying Ciena’s WaveLogic Ai coherent optics across a flexible 6500 ROADM network, delivering 400GbE wave services to increase capacity and reach more users. Summit Broadband is also utilizing Ciena’s 3926 and 5164 Routing and Switching platforms for cost effective service delivery, as well as Adaptive IP Apps and Manage, Control and Plan (MCP) domain controller for real-time visibility and analysis of routing behaviors to optimize network performance and identify issues with greater ease for faster resolution.

Ciena noted that Summit Broadband has rolled out 400 Gbps wavelength to support the rise in data consumption of high-bandwidth applications such as cloud computing, IoT devices, video streaming, and enterprise services. This upgrade builds on the longstanding relationship between both companies, with Ciena powering Summit’s optical network.

In his first year as CEO, Kevin Coyne has transformed Summit Broadband’s network to create data superhighways encircling the Florida peninsula, serving customers in Central, West, and Southwest Florida. This recent network expansion gives Summit Broadband even greater flexibility and adaptability to respond to the increasing needs of its customers, including school districts and municipalities.

“The past year has shown us how having access to high-quality connectivity is a necessity for everyday life,” said Coyne. “We chose to invest in deploying Ciena’s cutting edge solutions to bring an enhanced digital experience across Florida, connecting more people and businesses using higher speeds and lower latency services.”

“The demand for bandwidth shows no signs of slowing down, and our new 400 Gbps service ensures that our business customers have the high performance and scalability essential for applications like data center interconnect, which require fast speeds and low latency.”

Additionally, the upgrade will allow Summit to deliver more data per unit of energy over our existing infrastructure, maximizing network utilisation and providing capex and opex savings, Summit Broadband added.

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In January, BW Digital, the owner of the Hawaiki Submarine Cable, confirmed the availability of commercial 400 GbE services on the Hawaiki trans-Pacific cable, powered by Ciena’s GeoMesh Extreme subsea network solution.

References:

https://www.ciena.com/about/customer-stories/summit-broadband-expands-network-across-florida-with-cienas-adaptive-ip

Summit Broadband Launches 400 Gbps Services With Ciena

 

SNS Telecom & IT: Private 5G Network market annual spending will be $3.5 Billion by 2027

SNS Telecom & IT’s new “Private 5G Networks: 2024 – 2030” report exclusively focuses on the market for private networks built using the 3GPP-defined 5G specifications (there are no ITU-R recommendations for private 5G networks or ITU-T recommendations for 5G SA core networks). In addition to vendor consultations, it has taken us several months of end user surveys in early adopter national markets to compile the contents and key findings of this report. A major focus of the report is to highlight the practical and tangible benefits of production-grade private 5G networks in real-world settings, as well as to provide a detailed review of their applicability and realistic market size projections across 16 vertical sectors based on both supply side and demand side considerations.

The report states report that the real-world impact of private 5G networks – which are estimated to account for $3.5 Billion in annual spending by 2027 – is becoming ever more visible, with diverse practical and tangible benefits such as productivity gains through reduced dependency on unlicensed wireless and hard-wired connections in industrial facilities, allowing workers to remotely operate cranes and mining equipment from a safer distance and significant, quantifiable cost savings enabled by 5G-connected patrol robots and image analytics in Wagyu beef production.

SNS Telecom & IT estimates that annual investments in private 5G networks for vertical industries will grow at a CAGR of approximately 42% between 2024 and 2027, eventually accounting for nearly $3.5 Billion by the end of 2027. Although much of this growth will be driven by highly localized 5G networks covering geographically limited areas for Industry 4.0 applications in manufacturing and process industries, sub-1 GHz wide area critical communications networks for public safety, utilities and railway communications are also anticipated to begin their transition from LTE, GSM-R and other legacy narrowband technologies to 5G towards the latter half of the forecast period, as 5G Advanced becomes a commercial reality. Among other features for mission-critical networks, 3GPP Release 18 – which defines the first set of 5G Advanced specifications – adds support for 5G NR equipment operating in dedicated spectrum with less than 5 MHz of bandwidth, paving the way for private 5G networks operating in sub-500 MHz, 700 MHz, 850 MHz and 900 MHz bands for public safety broadband, smart grid modernization and FRMCS (Future Railway Mobile Communication System).

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Private LTE networks are a well-established market and have been around for more than a decade, albeit as a niche segment of the wider cellular infrastructure segment – iNET’s (Infrastructure Networks) 700 MHz LTE network in the Permian Basin, Tampnet’s offshore 4G infrastructure in the North Sea, Rio Tinto’s private LTE network for its Western Australia mining operations and other initial installations date back to the early 2010s. However, in most national markets, private cellular networks or NPNs (Non-Public Networks) based on the 3GPP-defined 5G specs are just beginning to move beyond PoC (Proof-of-Concept) trials and small-scale deployments to production-grade implementations of standalone 5G networks, which are laying the foundation for Industry 4.0 and advanced application scenarios.

Compared to LTE technology, private 5G networks – also referred to as 5G MPNs (Mobile Private Networks), 5G campus networks, local 5G or e-Um 5G systems depending on geography – can address far more demanding performance requirements in terms of throughput, latency, reliability, availability and connection density. In particular, 5G’s URLLC (Ultra-Reliable, Low-Latency Communications) and mMTC (Massive Machine-Type Communications) capabilities, along with a future-proof transition path to 6G networks in the 2030s, have positioned it as a viable alternative to physically wired connections for industrial-grade communications between machines, robots and control systems. Furthermore, despite its relatively higher cost of ownership, 5G’s wider coverage radius per radio node, scalability, determinism, security features and mobility support have stirred strong interest in its potential as a replacement for interference-prone unlicensed wireless technologies in IIoT (Industrial IoT) environments, where the number of connected sensors and other endpoints is expected to increase significantly over the coming years.

It is worth noting that China is an outlier and the most mature national market thanks to state-funded directives aimed at accelerating the adoption of 5G connectivity in industrial settings such as factories, warehouses, mines, power plants, substations, oil and gas facilities and ports. To provide some context, the largest private 5G installations in China can comprise hundreds to even thousands of dedicated RAN (Radio Access Network) nodes supported by on-premise or edge cloud-based core network functions depending on specific latency, reliability and security requirements. For example, home appliance manufacturer Midea’s Jingzhou industrial park hosts 2,500 indoor and outdoor 5G NR access points to connect workers, machines, robots and vehicles across an area of approximately 104 acres, steelmaker WISCO (Wuhan Iron & Steel Corporation) has installed a dual-layer private 5G network – spanning 85 multi-sector macrocells and 100 small cells – to remotely operate heavy machinery at its steel plant in Wuhan (Hubei), and Fujian-based manufacturer Wanhua Chemical has recently built a customized wireless network that will serve upwards of 8,000 5G RedCap (Reduced Capability) devices, primarily surveillance cameras and IoT sensors.

As end user organizations in the United States, Germany, France, Japan, South Korea, Taiwan and other countries ramp up their digitization and automation initiatives, private 5G networks are progressively being implemented to support use cases as diverse as wirelessly connected machinery for the rapid reconfiguration of production lines, distributed PLC (Programmable Logic Controller) environments, AMRs (Autonomous Mobile Robots) and AGVs (Automated Guided Vehicles) for intralogistics, AR (Augmented Reality)-assisted guidance and troubleshooting, machine vision-based quality control, wireless software flashing of manufactured vehicles, remote-controlled cranes, unmanned mining equipment, BVLOS (Beyond Visual Line-of-Sight) operation of drones, digital twin models of complex industrial systems, ATO (Automatic Train Operation), video analytics for railway crossing and station platform safety, remote visual inspections of aircraft engine parts, real-time collaboration for flight line maintenance operations, XR (Extended Reality)-based military training, virtual visits for parents to see their infants in NICUs (Neonatal Intensive Care Units), live broadcast production in locations not easily accessible by traditional solutions, operations-critical communications during major sporting events, and optimization of cattle fattening and breeding for Wagyu beef production.

Despite prolonged teething problems in the form of a lack of variety of non-smartphone devices, high 5G IoT module costs due to low shipment volumes, limited competence of end user organizations in cellular wireless systems and conservatism with regards to new technology, early adopters are affirming their faith in the long-term potential of private 5G by investing in networks built independently using new shared and local area licensed spectrum options, in collaboration with private network specialists or via traditional mobile operators. Some private 5G installations have progressed to a stage where practical and tangible benefits – particularly efficiency gains, cost savings and worker safety – are becoming increasingly evident. Notable examples include but are not limited to:

  • Tesla’s private 5G implementation on the shop floor of its Giga-factory Berlin-Brandenburg plant in Brandenburg, Germany, has helped in overcoming up to 90 percent of the overcycle issues for a particular process in the factory’s GA (General Assembly) shop. The electric automaker is integrating private 5G network infrastructure to address high-impact use cases in production, intralogistics and quality operations across its global manufacturing facilities.
  • John Deere is steadily progressing with its goal of reducing dependency on wired Ethernet connections from 70% to 10% over the next five years by deploying private 5G networks at its industrial facilities in the United States, South America and Europe. In a similar effort, automotive aluminum die-castings supplier IKD has replaced 6 miles of cables connecting 600 pieces of machinery with a private 5G network, thereby reducing cable maintenance costs to near zero and increasing the product yield rate by ten percent.
  • Lufthansa Technik’s 5G campus network at its Hamburg facility has removed the need for its civil aviation customers to physically attend servicing by providing reliable, high-resolution video access for virtual parts inspections and borescope examinations at both of its engine overhaul workshops. Previous attempts to implement virtual inspections using unlicensed Wi-Fi technology proved ineffective due to the presence of large metal structures.
  • The EWG (East-West Gate) Intermodal Terminal’s private 5G network has increased productivity from 23-25 containers per hour to 32-35 per hour and reduced the facility’s personnel-related operating expenses by 40 percent while eliminating the possibility of crane operator injury due to remote-controlled operation with a latency of less than 20 milliseconds.
  • The Liverpool 5G Create network in the inner city area of Kensington has demonstrated significant cost savings potential for digital health, education and social care services, including an astonishing $10,000 drop in yearly expenditure per care home resident through a 5G-connected fall prevention system and a $2,600 reduction in WAN (Wide Area Network) connectivity charges per GP (General Practitioner) surgery – which represents $220,000 in annual savings for the United Kingdom’s NHS (National Health Service) when applied to 86 surgeries in Liverpool.
  • NEC Corporation has improved production efficiency by 30 percent through the introduction of a local 5G-enabled autonomous transport system for intralogistics at its new factory in Kakegawa (Shizuoka Prefecture), Japan. The manufacturing facility’s on-premise 5G network has also resulted in an elevated degree of freedom in terms of the factory floor layout, thereby allowing NEC to flexibly respond to changing customer needs, market demand fluctuations and production adjustments.
  • A local 5G installation at Ushino Nakayama’s Osumi farm in Kanoya (Kagoshima Prefecture), Japan, has enabled the Wagyu beef producer to achieve labor cost savings of more than 10 percent through reductions in accident rates, feed loss, and administrative costs. The 5G network provides wireless connectivity for AI (Artificial Intelligence)-based image analytics and autonomous patrol robots.
  • CJ Logistics has achieved a 20 percent productivity increase at its Ichiri center in Icheon (Gyeonggi), South Korea, following the adoption of a private 5G network to replace the 40,000 square meter warehouse facility’s 300 Wi-Fi access points for Industry 4.0 applications, which experienced repeated outages and coverage issues.
  • Delta Electronics – which has installed private 5G networks for industrial wireless communications at its plants in Taiwan and Thailand – estimates that productivity per direct labor and output per square meter have increased by 69% and 75% respectively following the implementation of 5G-connected smart production lines.
  • An Open RAN-compliant standalone private 5G network in Taiwan’s Pingtung County has facilitated a 30 percent reduction in pest-related agricultural losses and a 15 percent boost in the overall revenue of local farms through the use of 5G-equipped UAVs (Unmanned Aerial Vehicles), mobile robots, smart glasses and AI-enabled image recognition.
  • JD Logistics – the supply chain and logistics arm of online retailer JD.com – has achieved near-zero packet loss and reduced the likelihood of connection timeouts by an impressive 70 percent since migrating AGV communications from unlicensed Wi-Fi systems to private 5G networks at its logistics parks in Beijing and Changsha (Hunan), China.
  • Baosteel – a business unit of the world’s largest steelmaker China Baowu Steel Group – credits its 43-site private 5G deployment at two neighboring factories with reducing manual quality inspections by 50 percent and achieving a steel defect detection rate of more than 90 percent, which equates to $7 Million in annual cost savings by reducing lost production capacity from 9,000 tons to 700 tons.
  • Dongyi Group Coal Gasification Company ascribes a 50 percent reduction in manpower requirements and a 10 percent increase in production efficiency – which translates to more than $1 Million in annual cost savings – at its Xinyan coal mine in Lvliang (Shanxi), China, to private 5G-enabled digitization and automation of underground mining operations.
  • Sinopec’s (China Petroleum & Chemical Corporation) explosion-proof 5G network at its Guangzhou oil refinery in Guangdong, China, has reduced accidents and harmful gas emissions by 20% and 30% respectively, resulting in an annual economic benefit of more than $4 Million. The solution is being replicated across more than 30 refineries of the energy giant.
  • Since adopting a hybrid public-private 5G network to enhance the safety and efficiency of urban rail transit operations, the Guangzhou Metro rapid transit system has reduced its maintenance costs by approximately 20 percent using 5G-enabled digital perception applications for the real-time identification of water logging and other hazards along railway tracks.

Some of the most technically advanced features of 5G Advanced – 5G’s next evolutionarily phase – are also being trialed over private wireless installations. Among other examples, Chinese automaker Great Wall Motor is using an indoor 5G Advanced network for time-critical industrial control within a car roof production line as part of an effort to prevent wire abrasion in mobile application scenarios, which results in production interruptions with an average downtime of 60 hours a year.

In addition, against the backdrop of geopolitical trade tensions and sanctions that have restricted established telecommunications equipment suppliers from operating in specific countries, private 5G networks have emerged as a means to test domestically produced 5G network infrastructure products in controlled environments prior to large-scale deployments or vendor swaps across national or regional public mobile networks. For instance, Russian steelmaker NLMK Group is trialing a private 5G network in a pilot zone within its Lipetsk production site, using indigenously built 5G equipment operating in Band n79 (4.8-4.9 GHz) spectrum.

To capitalize on the long-term potential of private 5G, a number of new alternative suppliers have also developed 5G infrastructure offerings tailored to the specific needs of industrial applications. For example, satellite communications company Globalstar has launched a 3GPP Release 16-compliant multipoint terrestrial RAN system that is optimized for dense private wireless deployments in Industry 4.0 automation environments while German engineering conglomerate Siemens has developed an in-house private 5G network solution for use at its own plants as well as those of industrial customers.

The “Private 5G Networks: 2024 – 2030 – Opportunities, Challenges, Strategies & Forecasts” report presents an in-depth assessment of the private 5G network ecosystem, including the value chain, market drivers, barriers to uptake, enabling technologies, operational and business models, vertical industries, application scenarios, key trends, future roadmap, standardization, spectrum availability and allocation, regulatory landscape, case studies, ecosystem player profiles and strategies. The report also presents global and regional market size forecasts from 2024 to 2030. The forecasts cover three infrastructure submarkets, two technology generations, 16 vertical industries and five regional markets.  The report comes with an associated Excel datasheet suite covering quantitative data from all numeric forecasts presented in the report, as well as a database of over 7,000 global private cellular engagements – including more than 2,200 private 5G installations – as of Q2’2024.

The key findings of the report include:

  • SNS Telecom & IT estimates that annual investments in private 5G networks for vertical industries will grow at a CAGR of approximately 42% between 2024 and 2027, eventually accounting for nearly $3.5 Billion by the end of 2027. Much of this growth will be driven by highly localized 5G networks covering geographically limited areas for high-throughput and low-latency Industry 4.0 applications in manufacturing and process industries.
  • Sub-1 GHz wide area critical communications networks for public safety, utilities and railway communications are also anticipated to begin their transition from LTE, GSM-R and other legacy narrowband technologies to 5G towards the latter half of the forecast period, as 5G Advanced – 5G’s next evolutionarily phase – becomes a commercial reality.
  • As end user organizations ramp up their digitization and automation initiatives, some private 5G installations have progressed to a stage where practical and tangible benefits are becoming increasingly evident. Notably, private 5G networks have resulted in productivity and efficiency gains for specific manufacturing, quality control and intralogistics processes in the range of 20 to 90%, cost savings of up to 40% at an intermodal terminal, reduction of worker accidents and harmful gas emissions by 20% and 30% respectively at an oil refinery, and a 50% decrease in manpower requirements for underground mining operations.
  • Some of the most technically advanced features of 5G Advanced are also being trialed over private wireless installations. Among other examples, Chinese automaker Great Wall Motor is using an indoor 5G Advanced network for time-critical industrial control within a car roof production line as part of an effort to prevent wire abrasion in mobile application scenarios, which results in production interruptions with an average downtime of 60 hours a year.

In addition, against the backdrop of geopolitical trade tensions and sanctions that have restricted established telecommunications equipment suppliers from operating in specific countries, private 5G networks have emerged as a means to test domestically produced 5G network infrastructure products in controlled environments prior to large-scale deployments or vendor swaps across national or regional public mobile networks. For example, Russian steelmaker NLMK Group is trialing a private 5G network in a pilot zone within its Lipetsk production site, using indigenously built 5G equipment operating in Band n79 (4.8-4.9 GHz) spectrum.

To capitalize on the long-term potential of private 5G, a number of new alternative suppliers have also developed 5G infrastructure offerings tailored to the specific needs of industrial applications. For example, satellite communications company Globalstar has launched a 3GPP Release 16-compliant multipoint terrestrial RAN system that is optimized for dense private wireless deployments in Industry 4.0 automation environments while German engineering conglomerate Siemens has developed an in-house private 5G network solution for use at its own plants as well as those of industrial customers.

Spectrum liberalization initiatives – particularly shared and local spectrum licensing frameworks – are playing a pivotal role in accelerating the adoption of private 5G networks. Telecommunications regulators in multiple national markets – including the United States, Canada, United Kingdom, Germany, France, Spain, Netherlands, Switzerland, Finland, Sweden, Norway, Poland, Slovenia, Bahrain, Japan, South Korea, Taiwan, Hong Kong, Australia and Brazil – have released or are in the process of granting access to shared and local area licensed spectrum.

By capitalizing on their extensive licensed spectrum holdings, infrastructure assets and cellular networking expertise, national mobile operators have continued to retain a significant presence in the private 5G network market, even in countries where shared and local area licensed spectrum is available. With an expanded focus on vertical B2B (Business-to-Business) opportunities in the 5G era, mobile operators are actively involved in diverse projects extending from localized 5G networks for secure and reliable wireless connectivity in industrial and enterprise environments to sliced hybrid public-private networks that integrate on-premise 5G infrastructure with a dedicated slice of public mobile network resources for wide area coverage.

New classes of private network service providers have also found success in the market. Notable examples include but are not limited to Celona, Federated Wireless, Betacom, InfiniG, Ataya, Smart Mobile Labs, MUGLER, Alsatis, Telent, Logicalis, Telet Research, Citymesh, Netmore, RADTONICS, Combitech, Grape One, NS Solutions, OPTAGE, Wave-In Communication, LG CNS, SEJONG Telecom, CJ OliveNetworks, Megazone Cloud, Nable Communications, Qubicom, NewGens and Comsol, and the private 5G business units of neutral host infrastructure providers such as Boldyn Networks, American Tower, Boingo Wireless, Crown Castle, Freshwave and Digita.

NTT, Kyndryl, Accenture, Capgemini, EY (Ernst & Young), Deloitte, KPMG and other global system integrators have been quick to seize the private cellular opportunity with strategic technology alliances. Meanwhile, hyperscalers – most notably AWS (Amazon Web Services), Google and Microsoft – are offering managed private 5G services by leveraging their cloud and edge platforms.

Although greater vendor diversity is beginning to be reflected in infrastructure sales, larger players are continuing to invest in strategic acquisitions as highlighted by HPE’s (Hewlett Packard Enterprise) acquisition of Italian mobile core technology provider Athonet.

The service provider segment is not immune to consolidation either. For example, Boldyn Networks has recently acquired Cellnex’s private networks business unit, which largely includes Edzcom – a private 4G/5G specialist with installations in Finland, France, Germany, Spain, Sweden and the United Kingdom.

Among other examples, specialist fiber and network solutions provider Vocus has acquired Challenge Networks – an Australian pioneer in private LTE and 5G networks, while mobile operator Telstra – through its Telstra Purple division – has acquired industrial private wireless solutions provider Aqura Technologies.

The report will be of value to current and future potential investors into the private 5G network market, as well as 5G equipment suppliers, system integrators, private network specialists, mobile operators and other ecosystem players who wish to broaden their knowledge of the ecosystem.

About SNS Telecom & IT:

Part of the SNS Worldwide group, SNS Telecom & IT is a global market intelligence and consulting firm with a primary focus on the telecommunications and information technology industries. Developed by in-house subject matter experts, our market intelligence and research reports provide unique insights on both established and emerging technologies. Our areas of coverage include but are not limited to 5G, LTE, Open RAN, private cellular networks, IoT (Internet of Things), critical communications, big data, smart cities, smart homes, consumer electronics, wearable technologies and vertical applications.

References:

https://www.snstelecom.com/private5g

What is 5G Advanced and is it ready for deployment any time soon?

Nokia and Kyndryl extend partnership to deliver 4G/5G private networks and MEC to manufacturing companies

https://www.kyndryl.com/us/en/about-us/news/2024/02/it-ot-convergence-in-manufacturing

India Telcos say private networks will kill their 5G business

WSJ: China Leads the Way With Private 5G Networks at Industrial Facilities

SNS Telecom & IT: Q1-2024 Public safety LTE/5G report: review of engagements across 86 countries, case studies, spectrum allocation and more

 

 

Big Tech post strong earnings and revenue growth, but cuts jobs along with Telecom Vendors

Tech companies have been consistently laying off employees since late 2022. As of April 25th, some 266 tech companies have laid off nearly 75,000 workers in 2024, according to the independent layoff-tracking site layoffs.fyi.  A total of 262,682 workers in tech lost their jobs in 2023 compared with 164,969 in 2022. The volume of layoffs in 2023 — a total of 1,186 companies — also surpassed 2022, when 1,061 companies in tech laid off workers — and that total was more than in 2020 and 2021 combined.

Big Tech companies Alphabet (Google’s parent), Amazon, Apple, Meta, Microsoft and Netflix, collectively cut nearly 45,500 jobs in their most recent full fiscal year. Since 2020, however, they have added more than 358,500, bringing total headcount to nearly 2,170,000. Excluding Amazon, which accounts for 70% of that figure, job numbers fell by around 29,700 last year but have grown by 131,500 since 2020 (data from earnings reports and SEC filings – see chart below).

  • Today, Amazon reported better-than-expected earnings and revenue for the first quarter, driven by growth in advertising and cloud computing. Operating income soared more than 200% in the period to $15.3 billion, far outpacing revenue growth, the latest sign that the company’s cost-cutting measures and focus on efficiency is bolstering its bottom line. AWS accounted for 62% of total operating profit. Net income also more than tripled to $10.4 billion, or 98 cents a share, from $3.17 billion, or 31 cents a share, a year ago. Sales increased 13% from $127.4 billion a year earlier.
  • Google parent Alphabet also posted robust profits, with net income in the latest quarter soaring 57% to $23.7 billion while revenue grew 15% in the quarter.  That’s despite job cuts of 12,115 and net headcount reduction of ~8,000 in 2023.
  • Microsoft last week managed 20% year-over-year growth in third-quarter net income, to around $21.9 billion, on 17% growth in sales, to $61.9 billion. The number of Microsoft employees was unchanged in 2023 from the previous year, despite the company laying off 11,158 employees.  Future headcount reductions may be necessary to help pay for Microsoft’s multi-billion-dollar splurge on AI and the data centers needed to train the Large Language Models and associated generative AI technology. But few expect job cuts to slow Microsoft down.

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As expected, telecom vendors, which have many fewer employees, than Big Tech had a higher percentage of job reductions.  CommScope, Corning, Dell, Ericsson, and Nokia, suppliers to some of the world’s biggest telcos, shed nearly 36,500 jobs last year as large IT customers spent less on new equipment.

The following table shows the total number of jobs per year for many vendors/cloud service providers.

Screenshot_2024-04-29_at_15.51.25.png

Source: Light Reading & company reports/SEC filings

Huawei was the exception to the telecom vendor layoff craze (even ZTE reduced its workforce in 2023). Despite U.S. sanctions and a European backlash against the company, Huawei gained 12,000 employees in 2022, giving it a workforce of 207,000 that year. The number was unchanged in 2023, according to its recently published annual report. Restrictions have not been as effective at hindering Huawei’s progress as the U.S. had hoped.

On the semiconductor side, Intel experienced a net workforce reduction of 7,100 jobs. Profits have tanked because of market share losses, a downturn in customer spending on equipment (explained partly by the earlier build-up of inventory that happened after the pandemic) and investments in new foundries designed to challenge the Asian giants of TSMC and Samsung. Big Tech moves to build in-house AI augmented processor chips that can substitute for Intel’s microprocessors are among the problems the company faces.   Intel’s profits have collapsed, just as they have at the mobile networks business group of silicon customer Nokia, and it is at risk of displacement by chip rivals in important markets.

These big tech layoffs are a peculiar outlier in an otherwise strong employment environment: The unemployment rate has hovered between 3.4% and 3.8% since Feb. 2022, bureau data shows.  And quit rates, which reflect a lack of worker confidence, this year are consistently at some of the highest levels in more than 20 years, according to the Federal Reserve Bank of St. Louis.

In summary, Big Tech companies continue to thrive financially, but they are also making strategic adjustments, including job cuts, as they navigate the evolving landscape of technology and generative AI. The emphasis on AI development, large language models, and cloud services remains a key driver for their growth and profitability.  Telecom vendors are facing tremendous pain due to continued reduction in telco CAPEX which may persists for many years.

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References:

https://www.lightreading.com/ai-machine-learning/big-tech-it-and-telecom-vendors-axed-70-000-jobs-last-year

https://www.nerdwallet.com/article/finance/tech-layoffs

US cable and telecom network operators feel the pain

Bloomberg: Higher borrowing costs hurting indebted wireless companies; industry is 2nd largest source of distressed debt

Telecom layoffs continue unabated as AT&T leads the pack – a growth engine with only 1% YoY growth?

High Tech Layoffs Explained: The End of the Free Money Party

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