IDC: Public Cloud services spending to hit $1.35 trillion in 2027

Global spending on public cloud services is projected to reach $1.35 trillion in 2027, according to IT market research firm IDC. Although annual cloud spending growth is expected to slow slightly over the 2023-2027 forecast period, the market is forecast to achieve a five-year compound annual growth rate (CAGR) of 19.9%.

IDC forecasts that the U.S. will be the largest geographic public cloud market and will reach $697 billion in 2027. Western Europe is predicted to be in second place with $273 billion, followed by China at $117 billion in 2027.

Eileen Smith, program VP for data & analytics at IDC, said cloud is dominating spending in the tech sector across infrastructure, platforms and applications.  She wrote:

“Cloud now dominates tech spending across infrastructure, platforms, and applications.  Most organizations have adopted the public cloud as a cost-effective platform for hosting enterprise applications and for developing and deploying customer-facing solutions. Looking forward, the cloud model remains incredibly well positioned to serve customer needs for innovation in application development and deployment, including as data, artificial intelligence/machine learning (AI/ML), and edge needs continue to define the forefront of innovation.”

Of the 28 industries* covered in the IDC Spending Guide, the three largest in 2027 – Banking, Software and Information Services, and Telecommunications – will together represent $326 billion in public cloud services spending.

IDC forecasts that software-as-a-service (SaaS) applications to be the largest cloud computing category, garnering about 40% of all public cloud spending. Next largest is infrastructure as a service (IaaS) with a CAGR of 23.5%, followed by platform as a service (PaaS) with a five-year CAGR of 27.2%. SaaS – system infrastructure software (SIS) is forecast to be the smallest category of cloud spending, cornering about 15% of the market.

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References:

https://www.idc.com/getdoc.jsp?containerId=prUS51179523

https://www.idc.com/getdoc.jsp?containerId=IDC_P33214

IDC: Public Cloud software at 2/3 of all enterprise applications revenue in 2026; SaaS is essential!

Cloud infrastructure services market grows; AI will be a major driver of future cloud service provider investments

https://techblog.comsoc.org/2022/02/09/gartner-accelerated-move-to-public-cloud-to-overtake-traditional-it-spending-in-2025/

IDC: Worldwide Public Cloud Services Revenues Grew 29% to $408.6 Billion in 2021 with Microsoft #1?

 

 

Google Cloud infrastructure enhancements: AI accelerator, cross-cloud network and distributed cloud

Google is selling broad access to its most powerful artificial-intelligence technology for the first time as it races to make up ground in the lucrative cloud-software market.  The cloud giant now has a global network of 38 cloud regions, with a goal to operate entirely on carbon-free energy 24/7 by 2030.

At the Google Cloud Next conference today, Google Cloud announced several key infrastructure enhancements for customers, including:

  • Cloud TPU v5e: Google’s most cost-efficient, versatile, and scalable purpose-built AI accelerator to date. Now, customers can use a single Cloud TPU platform to run both large-scale AI training and inference. Cloud TPU v5e scales to tens of thousands of chips and is optimized for efficiency. Compared to Cloud TPU v4, it provides up to a 2x improvement in training performance per dollar and up to a 2.5x improvement in inference performance per dollar.
  • A3 VMs with NVIDIA H100 GPUA3 VMs powered by NVIDIA’s H100 GPU will be generally available next month. It is purpose-built with high-performance networking and other advances to enable today’s most demanding gen AI and large language model (LLM) innovations. This allows organizations to achieve three times better training performance over the prior-generation A2.
  • GKE Enterprise: This enables multi-cluster horizontal scaling ;-required for the most demanding, mission-critical AI/ML workloads. Customers are already seeing productivity gains of 45%, while decreasing software deployment times by more than 70%. Starting today, the benefits that come with GKE, including autoscaling, workload orchestration, and automatic upgrades, are now available with Cloud TPU v5e.
  • Cross-Cloud Network: A global networking platform that helps customers connect and secure applications across clouds. It is open, workload-optimized, and offers ML-powered security to deliver zero trust. Designed to enable customers to gain access to Google services more easily from any cloud, Cross-Cloud Network reduces network latency by up to 35%.
  • Google Distributed Cloud: Designed to meet the unique demands of organizations that want to run workloads at the edge or in their data center. In addition to next-generation hardware and new security capabilities, the company is also enhancing the GDC portfolio to bring AI to the edge, with Vertex AI integrations and a new managed offering of AlloyDB Omni on GDC Hosted.

Google’s launch on Tuesday puts it ahead of Microsoft in making AI-powered office software easily available for all customers,” wrote WSJ’s Miles Kruppa. Google will also open up availability to its large PaLM 2 model, which supports generative AI features, plus AI technology by Meta Platforms and startup Anthropic, reported Kruppa.

The efforts are Google’s latest attempt to spark growth in the cloud business, an important part of CEO Sundar Pichai’s attempts to reduce dependence on its cash-cow search engine. Recent advances in AI, and the computing resources they require, have added extra urgency to turn the technology into profitable products.

Google’s infrastructure and software offerings produce $32 billion in annual sales, about 10% of total revenue at parent company. Its cloud unit turned a quarterly operating profit for the first time this year. That still leaves Google firmly in third place in the cloud behind AWS and Microsoft Azure.  However, Google Cloud revenue is growing faster – at 31% – than its two bigger cloud rivals.

Google will make widely available its current large PaLM 2 model, which powers many of the company’s generative-AI features. It was previously only available for handpicked customers. The company also will make available AI technology developed by Meta Platforms and the startup Anthropic, in which it is an investor.

Google Cloud CEO Thomas Kurian who gave the keynote speech at Google Cloud Next 2023 conference.   Image Credit: Alphabet (parent company of Google)

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Google Cloud’s comprehensive AI platform — Vertex AI — enables customers to build, deploy and scale machine learning (ML) models. They have seen tremendous usage, with the number of gen AI customer projects growing more than 150 times from April-July this year.  Customers have access to more than 100 foundation models, including third-party and popular open-source versions, in their Model Garden. They are all optimized for different tasks and different sizes, including text, chat, images, speech, software code, and more.

Google also offer industry specific models like Sec-PaLM 2 for cybersecurity, to empower global security providers like Broadcom and Tenable; and Med-PaLM 2 to assist leading healthcare and life sciences companies including Bayer Pharmaceuticals, HCA Healthcare, and Meditech.

Partners are also using Vertex AI to build their own features for customers – including Box, Canva, Salesforce, UKG, and many others. Today at Next ‘23, we’re announcing:

  • DocuSign is working with Google to pilot how Vertex AI could be used to help generate smart contract assistants that can summarize, explain and answer what’s in complex contracts and other documents.
  • SAP is working with us to build new solutions utilizing SAP data and Vertex AI that will help enterprises apply gen AI to important business use cases, like streamlining automotive manufacturing or improving sustainability.
  • Workday’s applications for Finance and HR are now live on Google Cloud and they are working with us to develop new gen AI capabilities within the flow of Workday, as part of their multi-cloud strategy. This includes the ability to generate high-quality job descriptions and to bring Google Cloud gen AI to app developers via the skills API in Workday Extend, while helping to ensure the highest levels of data security and governance for customers’ most sensitive information.

In addition, many of the world’s largest consulting firms, including AccentureCapgeminiDeloitte, and Wipro, have collectively planned to train more than 150,000 experts to help customers implement Google Cloud GenAI.

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“The computing capabilities are improving a lot, but the applications are improving even more,” said Character Technologies CEO Noam Shazeer, who pushed for Google to release a chatbot to the public before leaving the company in 2021. “There will be trillions of dollars worth of value and product chasing tens of billions of dollars worth of hardware.”

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References:

https://cloud.google.com/blog/topics/google-cloud-next/welcome-to-google-cloud-next-23

https://www.wsj.com/tech/ai/google-chases-microsoft-amazon-cloud-market-share-with-ai-tools-a7ffc449

https://cloud.withgoogle.com/next

Cloud infrastructure services market grows; AI will be a major driver of future cloud service provider investments

Huawei launches new network products at HNS 2023 in Mexico

At the Huawei Network Summit (HNS) 2023, held in Cancun, Mexico August 25th, Huawei Data Communication (Huawei Datacom) announced its high-quality IP network solutions with three distinctive traits — versatile, premium, and cost-effective — for diverse industries like public service, education, healthcare, hospitality, and retail.

With the theme of “Innovation Never Stops,” HNS 2023 attracted over 500 customers and partners from more than 10 countries, including MexicoBrazilColombiaArgentinaPeru, and Chile. At the event, attendees from diverse industries — such as public service, finance, energy, Internet Service Provider (ISP), education, and healthcare — delved into data communication technology innovations and explored new ways to accelerate enterprise digital transformation and create new value together in Latin America.

Image Credit: Huawei

Saul Arjona Bueno, CTO of Huawei’s Latin America Enterprise Network Solutions, unveiled future-proof network solutions for five scenarios in the Latin America commercial markets. Subsequently, Francisco Jose Fuster Montiel, CTO of Huawei’s Mexico Enterprise Business Department, delved deep into these network solutions together with attending customers and partners.

Huawei Datacom Highlights:

  • High-quality government office network solution: Integral to this solution, one AP ensures a smooth 1080p video conference of 30 to 50 channels, without any lags.
  • High-quality primary and secondary school network solution: With its simplified network architecture, this solution enables fiber-to-the-room and facilitates network evolution over the next 5 to 10 years. It just takes 3 days to deploy the network for one school building.
  • High-quality hotel network solution: A core part of this solution, Huawei APs draw on smart antenna technology to ensure more focused Wi-Fi signals and deliver 30% greater coverage range than omnidirectional antennas. More importantly, Huawei’s lossless roaming technology ensures zero roaming disconnections and zero network complaints from guests.
  • High-quality small and midsize hospital network solution: As part of this solution, Huawei’s IoT-capable APs enable Wi-Fi and IoT converged deployment. Specifically, one AP provides both Wi-Fi coverage and IoT connectivity, making it easy to expand healthcare IoT use cases while improving the quality of hospital services.
  • High-quality retail network solution: A unique component of this solution is Huawei’s 6-in-1 gateway — NetEngine AR5710 router — which helps to lower network investments by 30% for retail stores.

At the event, Luis E. Juarez, Director of Security One at Mainbit and Héctor Cabrera, Executive Director at NGN also shared their successful practices of cooperating with Huawei in commercial markets. By leveraging Huawei’s high-quality IP network offerings, MainBit and NGN help their customers quickly address network pain points and enjoy the ultimate network experience.

Huawei’s high-quality IP network offerings have been proven valuable in numerous customers across diverse industries — such as public service, education, healthcare, hospitality, and retail — in more than 100 countries and regions. As a trusted partner for digital transformation, Huawei Datacom is committed to becoming a key contributor to the ICT infrastructures of small- and medium-sized enterprises (SMEs).  Huawei Datacom keeps integrating technologies into specific enterprise scenarios and helping global SMEs to lay a solid digital foundation for their digital transformation journey.

Huawei builds CloudCampus, CloudFabric, and CloudWAN solution capabilities, and launched many groundbreaking innovations, including the first-of-its-kind zero-roaming distributed Wi-Fi, high-quality experience assurance card (used on flagship campus switches), CloudEngine 16800-X (a 400GE data center network switch), NetEngine 8000 F8 (a converged transport router), and iMaster NCE-based network digital map.

All of these offerings empower networks with innovations and unleash digital productivity at an accelerated pace.

Intelligent Cloud-Network Solution with enhanced user experience, AI, and convergence includes:

  • CloudCampus 3.0 + Experience: Huawei’s high-quality 10 Gbps CloudCampus solution focuses on user experience and stands out with four unique features: ultra-high-speed access, simplified architecture, ultimate experience, and simplified O&M. This solution is a great fit for public service, finance, energy, education, healthcare, and other industries, where it can help to build a non-blocking office network. The resulting benefits include smooth video conferencing, 50% lower network construction costs, and fast fault recovery in minutes.
  • CloudFabric 3.0 + Intelligence: Huawei’s CloudFabric data center network solution becomes more intelligent than ever, and takes on three distinctive features: ultra-powerful performance, ultra-fast deployment, and ultra-intelligent O&M. In diverse industries like finance, public service, education, and ISP, this solution can improve AI training efficiency by 20%, provision services across clouds and data centers in minutes, locate network root causes for application exceptions with one click, and demarcate faults in minutes.
  • CloudWAN 3.0 + Convergence: Huawei’s converged CloudWAN solution creates new value for customers through converged networks, converged devices, and converged management. Leveraging Huawei’s solution, customers in industries such as public service, ISP, energy, and transportation can reduce the total cost of ownership (TCO) by 30% and capital expenditure (CAPEX) by 30% while increasing O&M efficiency by 60%.

Huawei says the company will continue to innovate and overcome technical bottlenecks through more R&D investments.  Also, Huawei will keep aligning best-in-class products and solutions with customers’ future business development. Doing so will help a wide range of industry customers to bridge technical divides and stay ahead of the competition. Huawei’s extensive training and communication platforms help customers gain fresh insight into leading products and solutions, and explore unique ways to unleash digital productivity.

References:

https://www.prnewswire.com/news-releases/huawei-network-summit-2023-latin-america-high-quality-connectivity-contributes-to-win-win-benefits-in-commercial-markets-301911040.html

https://www.prnewswire.com/news-releases/huawei-network-summit-2023-latin-america-innovations-never-stop-accelerating-industry-digital-transformation-301911037.html

Research on quantum communications using a chain of synchronously moving satellites without repeaters

Academic and industry researchers are increasingly eyeing the prospect of global communications networks that would take advantage of quantum technology. Long-distance quantum communication can be achieved by directly sending light through space using a train of orbiting satellites that function as optical lenses without using repeaters.

Some research groups are looking at satellite-based quantum communications, in which quantum information would ride on laser beams between spacecraft in low Earth orbit (LEO). However, the loss of photons in diffracting laser beams, as well as the curvature of the Earth itself, would likely limit realistic distances of high-efficiency quantum links between LEO satellites to less than 2000 km.

Image Credit: S. Goswami/University of Calgary

Recently, researchers Sumit Goswami of the University of Calgary, Canada, and Sayandip Dhara of the University of Central Florida, US, have laid out a proposal showing how those pitfalls could be overcome (Phys. Rev. Appl., doi: 10.1103/PhysRevApplied.20.024048). Their proposal involves relaying delicate quantum signals across a chain of relatively closely spaced, synchronously moving satellites. Those satellites, the pair suggests, could effectively act “like a set of lenses on an optical table,” focusing and bending beams along Earth’s curvature and preventing photon loss across distances as great as 20,000 km—without the need for quantum repeaters. Goswami said  that a chain of around 160 satellites would be needed to cover the full 20,000-km distance modeled in the paper. Such a single, geostationary chain, he noted, would cover most of the globe every three days as the Earth rotated beneath the satellite array—so, Goswami said, “even just one chain can be used for connecting many places at different times.” But a larger, 2D network, to enable uninterrupted worldwide quantum communications, would require tens of thousands of new satellites.

While Goswami and Dhara metaphorically refer to the nodes in their proposed all-satellite quantum network (ASQN) as satellite lenses, in reality the optical magic happens with mirrors, to keep absorption-related photon losses to an absolute minimum. In simplified terms, a given satellite in the chain sends a beam of light to the next one, perhaps 120 km away. That next satellite captures and refocuses the beam with a receiving mirror and bounces it off of two smaller mirrors to a final transmitting mirror, which relays the signal on to the next satellite in the chain.

In their modeling, Goswami and Dhara considered a chain of satellites, each separated from the next by 120 km; given expected beam divergence in Earth orbit, that implies a telescope diameter of 60 cm for each satellite. The team’s modeling suggests that such a relay setup, using vortex beams to pass the quantum signal from satellite to satellite, would virtually eliminate diffraction loss across distances of 20,000 km.

With diffraction loss taken care of, Goswami and Dhara methodically looked at other potential sources of loss in the satellite-lens system. One obvious one is reflection loss of some photons at the mirrors themselves, which the pair thinks could be kept manageable through a configuration combining large metal mirrors and small, ultrahigh-reflectivity Bragg mirrors. Another source of loss lies in tracking and positioning errors for the satellites in the chain; such hiccups would need to be held to a minimum to keep the satellites in sync with one another.

A final source of loss has nothing to do with the satellites. Depending on the quantum communication architecture, quantum information needs to be transmitted from and to stations on Earth’s surface. For free-space optical signals, that opens the prospect of data losses due to atmospheric turbulence, which can dramatically increase the beam size and spread.  Turbulence turns out to be a much bigger problem for data in the uplink (ground to satellite) than in the downlink (satellite to ground). That’s because in the uplink, the turbulence is doing its dirty work at the beginning of the communication chain rather than at its end; thus the turbulence-induced beam divergence and fragmentation is magnified across the large propagation distance of the satellite network as a whole.

Outperforming fiber—without repeaters:

 

Image Credit: S. Goswami and S. Dhara, Phys. Rev. Appl. 20, 024048 (2023), doi: 10.1103/PhysRevApplied.20.024048; copyright 2023 by the American Physical Society [Enlarge image]

For their proposed all-satellite quantum network (ASQN), Goswami and Dhara modeled two different quantum communication schemes. In one, qubit transmission (top), photons are transmitted from a ground-based source to a first satellite, relayed through space along a chain of reflector satellites, and beamed to another ground station, with beam diffraction controlled by focusing. In the other, entanglement distribution, an entanglement source is located either in a satellite (S1) or on the ground (S2), and entangled photons are distributed to widely separated ground stations, where they’re tested for quantum-secure communication.

Taking all of these sources of loss (and a few others) into account, Goswami and Dhara numerically simulated how such a chain of relay satellite lenses might work in transmitting quantum information under two scenarios. One is so-called entanglement distribution, the protocol demonstrated by researchers in China on the Micius satellite, in which photons are entangled in space and sent in different directions via the satellite lenses, ultimately to be transmitted down to widely separated stations on Earth and tested for quantum security.

The other is a simpler “qubit transmission” protocol, in which quantum bits (qubits) are simply sent from a ground station to the first satellite, transmitted across the chain and finally beamed down to a second, distant ground station. Such a system would require a different kind of optical design, to counteract the impact of turbulence on the satellite uplink. Goswami and Dhara think this approach may have certain advantages, however, as it keeps both the qubit source and detection in more controllable, better-outfitted ground stations.

Under both scenarios, the team found that the total signal loss across 20,000 km would come in at around 30 dB. That’s comparable to the loss experienced across only 200 km of a direct optical-fiber link (assuming a loss rate of 0.15 dB/km in the fiber). “Such a low-loss satellite-based optical-relay protocol,” Goswami and Dhara write, “would enable robust, multimode global quantum communication and would not require either quantum memories or repeater protocol.”

“What this proposal basically does,” Goswami observed in an email to OPN, “is that it shifts the task of creating quantum network from physics to engineering.” He added, however, that some of the engineering likely wouldn’t be trivial, particularly with respect to designing and developing the satellites in the fleet. Still, he and Dhara stress in the paper that recent developments in space technology—embodied in reusable launch vehicles from organizations such as SpaceX and the vast constellations of classical-communications satellites being lofted into LEO by a number of private companies—make a system such as their ASQN considerably more feasible than it would have been in the past.  Goswami and Dhara stress that recent developments in space technology make a system such as their ASQN considerably more feasible than it would have been in the past.

Goswami and Dhara believe that, by dispensing with the need for quantum repeaters or memory, the scheme they’ve proposed and modeled could open a range of possibilities implicit in a quantum network. Such prospects include secure communication via quantum key distribution, the linking of quantum computers, and precision long-distance quantum sensing.

The researchers admit, however, that a more complex network—that is, the long-term vision of a “quantum internet” now being fleshed out in a variety of research labs—would still require some sort of quantum memory to ensure completely lossless transmission.

This research could pave the way for the development of globally secure quantum communications networks, as the use of satellites would provide a high level of security against hacking and eavesdropping. The proposed system still needs further development and testing, but it presents a promising solution for enabling long-distance quantum communication without the need for repeaters.

References:

https://www.optica-opn.org/home/newsroom/2023/august/building_a_quantum_network_with_satellite_lenses/

https://physics.aps.org/articles/v16/s103

 

New Proposal for a Global Quantum Communications Network

 

Fiber Connect 2023: Telcos vs Cablecos; fiber symmetric speeds vs. DOCSIS 4.0?

Derek Kelly, Lumos’ VP of market development, went as far as to say that “fiber is always the answer,” and suggested cable alternatives will not stand the test of time.  Kelly claimed that as $42.5 billion is set to roll out through the Broadband, Equity, Access, and Deployment (BEAD) program, relying on investments in fiber will provide stability over the next 15 years.

“I think we’ve all seen DSL and fixed wireless projects get funded over the last couple of years. And then what happens? Those areas ultimately become blocked from future funding until the definitions change. And then they become available for another grant. And we see public dollars going on top of previous public dollars.” Kelly said.  He noted Lumos defines “unserved being no cable, underserved means they’re stuck with cable. And then there’s everyone else that has life-changing fiber. So we don’t care about speeds at this point.”

While acknowledging the need for funding in areas without even cable access, he noted another large-scale program after the BEAD initiative is unlikely. “Cable modems aren’t going to keep up with these definitions forever. Their lobbyists aren’t going to be able to convince people forever just make sure that they just barely can meet the definition of unserved,” he said. “We have communities that don’t have access to fiber. The FCC and NTIA may consider them as served today. And I agree the funding should go to areas that don’t even have cable yet, but the time is coming, where cable is going to be what’s unserved or underserved.”

Fiber execs mostly targeted cable’s “Achilles heel,” which is its lacking symmetric speed capabilities (upstream and downstream).

AT&T Fiber’s EVP Chris Sambar told a large keynote audience, “Don’t ask cable about symmetrical speeds, they don’t even know what that means.”  In an earlier blog post, he wrote, “Fiber is superior technology for things like uploading large files and increased bandwidth. It delivers an amazing experience, with multi-gig speeds and equally fast up- and downlinks. It’s also critical for powering technologies like 5G (backhaul) and edge computing (fiber access for ultra low latency). And with a far superior upgradeable capacity to handle soaring demand for high-quality bandwidth well into the future.”

However, Jay Lee, CTO of ATX Networks said that cable operators are “right in the throes” of upgrading their networks to get to full DOCSIS 3.1, and that high-split type of architecture will allow them to achieve competitive speeds in the upstream.  “Their downstream is probably two gigabits per second now and there’s a line of sight to be more than that,” he said. “Is it 10 Gig PON? No. But it’s still in that gig threshold that I think is as important from a consumer standpoint,” he added.

The next plan phase for cable is to move up to DOCSIS 4.0, which starts to get toward multi-gigabit upstream and five-plus in the downstream, sometimes upwards of 10 in the downstream. Lee noted that plenty of cable companies are doing “lots” of their own fiber buildouts.  “Some of the statements made on cable were like ‘they can’t do anything about it’ and certainly they can. DOCSIS 3.1 high-split is just the start.”

Jeff Heynen, VP at Dell’Oro Group echoed Lee’s comments, noting that current DOCSIS 3.1 mid-split can deliver 2 Gbps downstream and up to 200 Mbps upstream, which is what Comcast is offering today. Charter and Cox’s high-split offerings can go even further, delivering 2 Gbps downstream and up to 1 Gbps upstream.

A recent interoperability test conducted by Cable Labs showed that DOCSIS 4.0 modems paired with CCAP and vCMTS platforms in high-split configurations could deliver up to 8.6 Gbps downstream and 1.5 Gbps upstream.  Cable operators have claimed DOCSIS 4.0 modems should become available later this year, with volumes in 2024. Those downstream speeds would give cable “very comparable service tiers to most fiber providers,” Heynen said. “And this is before the outside plant is upgraded to DOCSIS 4.0, which will be capable of delivering up to 10 Gbps down and 6 Gbps up.”  However, other analysts have hinted that DOCSIS 4.0 rollouts will take longer than cable companies are saying.

References:

https://www.fiercetelecom.com/broadband/cable-fiber-rivalry-separating-fact-fiction

https://www.business.att.com/learn/articles/docsis-vs-fiber-why-knowing-the-difference-matters.html

https://about.att.com/innovationblog/2022/sambar-fiber-expansion.html

Huawei and Ericsson renew global patent cross-licensing agreement

The top two global RAN equipment makers, Huawei and Ericsson, have announced the renewal of a multi-year global patent cross-licensing agreement, which enables each to use the other’s standardized (3GPP, ITU, IEEE, and IETF standards for 3G, 4G, and 5G cellular technologies) and patented technologies. The patent sharing agreement includes network infrastructure, as well as endpoint devices.

“We are delighted to reach a long-term global cross-licensing agreement with Ericsson,” said Alan Fan, Head of Huawei’s Intellectual Property Department. “As major contributors of standard essential patents (SEPs) for mobile communication, the companies recognize the value of each other’s intellectual property, and this agreement creates a stronger patent environment. It demonstrates the commitment both parties have forged that intellectual property should be properly respected and protected.”

“Both companies are major contributors to mobile communication standards and recognize the value of each other’s intellectual property. This agreement demonstrates the commitment of both parties that intellectual property should be respected and rewarded, and that leading technological innovations should be shared across the industry. A balanced approach to licensing ensures that the interests of both patent holders and implementers are served fairly, driving healthy, sustainable industry development for the benefit of consumers and enterprises everywhere.”

Over the past 20 years, Huawei has been a major contributor to mainstream ICT standards, including those for cellular, Wi-Fi, and multimedia codecs. In 2022, Huawei topped the European Patent Office’s applicant ranking for number of patent applications filed, with 4,505 applications.

“Our commitment to sharing leading technological innovations will drive healthy, sustainable industry development and provide consumers with more robust products and services,” added Fan.

Huawei is both a holder and implementer of SEPs and seeks to take a balanced approach to licensing. Through the signing of this agreement, it is both giving and receiving access to key technologies. Fan said, “This agreement is the result of intensive discussions that ensured the interests of both patent holders and implementers are served fairly.”

Christina Petersson, Ericsson’s chief IP officer said, “This agreement demonstrates the commitment of both parties that intellectual property should be respected and rewarded, and that leading technological innovations should be shared across the industry. A balanced approach to licensing ensures that the interests of both patent holders and implementers are served fairly.”

The last time the two companies extended a cross-licensing agreement was in 2016. Over the past few years, both companies have actively contributed to developing key mobile standards.

Earlier this year, the European Patent Office published the EPO Patent Index 2022: with 4,505 patents filed, Huawei was the top contributor, while Ericsson came in fifth with 1,827. Currently, according to the Financial Times, Huawei owns 20% of global patents which makes it the world’s largest 5G patent owner.  Ericsson says they’ve been granted 60,000 patents.

Both Huawei and Ericsson are part of the Avanci patent pool, although the Chinese company is a recent addition following Avanci’s launch of a 5G vehicular programme earlier this month, which it says will “simplify the licensing of the cellular technologies used in next generation connected vehicles.”

Other Avanci patent licencees include Samsung, Philips, Panasonic and ZTE.

However, while Huawei and Ericsson have not engaged in active patent litigation, towards the end of last year Huawei demonstrated an intention to be more litigious over its patent portfolio. This included filing lawsuits against car manufacturer Stellantis over mobile phone patents, as well as launching a series of lawsuits over Wi-Fi 6 patents against Amazon, Netgear and AVM.

Around the same time, in the midst of a US FRAND trial, Ericsson and Apple signed a global patent licence agreement. This ended one of the largest disputes over implementation patents and SEPs in recent years, which spanned the US, Germany, the Netherlands, Belgium, the UK, Colombia and Brazil.

References:

https://www.prnewswire.com/news-releases/huawei-and-ericsson-sign-long-term-patent-cross-licensing-agreement-301909802.html

https://www.prnewswire.com/news-releases/ericsson-and-huawei-renew-global-patent-license-agreement-301909874.html

https://www.juve-patent.com/people-and-business/huawei-and-ericsson-renew-global-5g-patent-licensing-deal/

Nikkei Asia: Huawei demands royalties from Japanese companies

Chinese companies’ patents awarded in the U.S. increased ~10% while U.S. patent grants declined ~7% in 2021

Huawei or Samsung: Leader in 5G declared Standard Essential Patents (SEPs)?

5G Specifications (3GPP), 5G Radio Standard (IMT 2020) and Standard Essential Patents

GreyB study: Huawei undisputed leader in 5G Standard Essential Patents (SEPs)

 

LightCounting: Wireless infrastructure market down in 2Q-23 (no surprise)

Executive Summary:
As anticipated, it was almost a carbon copy of 1Q23. This sustained declining pattern confirms our prediction that we have entered the post-peak era. While the U.S. market posted its steepest drop, the strong 5G rollouts in China and India along with steady activity in EMEA and Southeast Asia were not enough to keep the wireless infrastructure market out of decline. On the open vRAN front, DISH in the U.S., Rakuten Mobile in Japan, and a few Rakuten Symphony customers failed to produce sequential growth for the market but did create double digit YoY growth. Meanwhile, the mobile packet core market was the only category that grew sequentially.
Despite a weak quarter, Huawei extended its lead over Ericsson, which managed to keep its share stable. In the meantime, once again, Nokia gained market share at the expense of the Japanese vendors. Samsung lost share while ZTE’s remained stable.
“The vibrant secondhand market for 4G and 5G equipment coming from the removal of the Chinese vendors banned in specific countries is not helping either, and that is here to stay and will contribute to the downward trend. In fact, what was supposed to be a boon for Ericsson and Nokia in particular is at this point negatively affecting the short-term market in pockets of EMEA and CALA,” said Stéphane Téral, Chief Analyst at LightCounting Market Research and Founder of Téral Research.
As a result, this year (2023), we expect the market to decline over 2022 with India in the 5G driver’s seat. In the long run, our service provider 20-year wireless infrastructure footprint pattern analysis points to a 2022-2028 CAGR of -3% characterized by low single-digit declines through 2027, which appears to be the bottom leading to flatness or slight growth in 2028. In fact, we expect 5G to slightly pick up in 2027, driven by upgrades needed to prepare networks for 6G. Given the ongoing 6G activity, we believe something labeled 6G will be deployed in 2028.
About the report:
Wireless Infrastructure quarterly report analyzes the wireless infrastructure market worldwide and covers 2G, 3G, 4G and 5G radio access network (RAN) and core network nodes. It presents historical data from 2016 to 2022 of quarterly market size and vendor market shares, and a detailed market forecast through 2028 for 2G/3G/4G/5G RAN, including open vRAN, and core networks (EPC, vEPC, and 5GC) for each region (North America, Europe Middle East Africa, Asia Pacific, Caribbean Latin America). The historical data accounts for the sales of more than 30 wireless infrastructure vendors, including vendors that shared confidential sales data with LightCounting and Téral Research. The market forecast is based on a model correlating wireless infrastructure vendor sales with 20 years of service provider network rollout pattern analysis and upgrade and expansion plans.
More information about the report is available at:
Historical data accounts for sales of the following vendors:
Vendor Segments Source of Information
Altran vRAN Estimates
Amdocs 5GC Estimates
ASOCS vRAN (DU) None, supplies other RAN/vRAN vendors
Baicell RAN (RU) None, supplies other RAN/vRAN vendors
Benetel Open RAN (RU) None, supplies other RAN/vRAN vendors
Cisco EPC, vEPC, 5GC Survey data and estimates
China Information and Communication Technologies Group (CICT) RAN Estimates
Comba Telecom RAN/vRAN (RU) None, supplies other RAN/vRAN vendors
CommScope (acquired Phluido vRAN patents, October 2020) vRAN (RU, DU) Estimates
Corning vRAN Estimates
Dell vRAN (DU) None, supplies other RAN/vRAN vendors
Enea 5GC Estimates
Ericsson RAN, vRAN, 2/3G Core, EPC, vEPC, 5GC Estimates
Fairwaves RAN/vRAN (RU) None, supplies other RAN/vRAN vendors
Fujitsu RAN Survey data and estimates
HPE 2G/3G core, 5GC Estimates
Huawei RAN, vRAN, 2/3G Core, EPC, vEPC, 5GC Survey data and estimates
JMA Wireless vRAN Estimates
KMW RAN/vRAN (RU) None, supplies other RAN/vRAN vendors
Kontron vRAN (DU) None, supplies other RAN/vRAN vendors
Mavenir (acquired ip.access, September 2020) vEPC, vRAN, 5GC Survey data and estimates
Microsoft (acquired Metaswitch and Affirmed Networks, 2020) 5GC, vEPC and 2G/3G core Estimates
Movandi RAN/vRAN (RU/repeater) Estimates
MTI Mobile vRAN (RU) None, supplies other RAN/vRAN vendors
Node-H vRAN (small cells) Estimates
Nokia RAN, vRAN, 2/3G Core, EPC, vEPC, 5GC Survey data and estimates
NEC (including Blue Danube Systems, January 2022) RAN, vRAN (RU), EPC, 5GC Survey data and estimates
Oracle 5GC Estimates
Parallel Wireless vRAN (CU, DU) Estimates
Pivotal RAN/vRAN (RU/mmWave repeater) Estimates
Quanta Cloud Technology (QCT) vRAN (DU) None, supplies other RAN/vRAN vendors
Qucell RAN, vRAN Estimates
Rakuten Symphony (acquired Altiostar, August 2021) vRAN (CU, DU) Estimates
Ribbon Communications 2G/3G core Survey data and estimates
Samsung RAN, vRAN, vEPC, 5GC Estimates
Silicom Open RAN (DU) None, supplies other RAN/vRAN vendors
SuperMicro Computer vRAN (DU) None, supplies other RAN/vRAN vendors
Verana Networks RAN/vRAN (RU/mmWave) Estimates
ZTE RAN, vRAN, 2/3G Core, EPC, vEPC, 5GC Survey data and estimates

T-Mobile US at “a pivotal crossroads” CEO says; 5,000 employees laid off

T-Mobile US Chief Executive Mike Sievert says the company is at a “pivotal crossroads.” Sievert’s comments come in a letter to staff in which he says the company is laying off 5,000 employees, or some 7% of the company.

T-Mobile CEO Mike Sievert argued the new job cuts would better position T-Mobile for the future. Sievert also cited increasing customer acquisition and retention costs. He described the layoffs as a “large change, and an unusual one for our company.”

Sievert wrote in a letter to T-Mobile employees:

“What it takes to attract and retain customers is materially more expensive than it was just a few quarters ago. We’ve been out-running this trend by accelerating merger synergies, and building our high-speed Internet business faster than expected, and out-performing in a few other areas. However, it is clear that doing everything we are doing and just doing it faster is not enough to deliver on these changing customer expectations going forward.

Today’s changes are all about getting us efficiently focused on a finite set of winning strategies, so that we can continue to out-pace our competitors and have the financial capability to deliver a differentiated network and customer experience to a continually growing customer base, while simultaneously meeting our obligations to our shareholders.”

T-Mobile CEO Mike Sievert (Source: UPI/Alamy Stock Photo)

T-Mobile’s layoffs will come over the next five weeks.  Sievert wrote that the cuts would primarily affect corporate and back-office roles, along with some technology positions.   These job cuts should come as no surprise.  T-Mobile has been steadily reducing the number of its employees since it merged with Sprint in 2020. Earlier this year T-Mobile laid off an unspecified number of employees as it worked to overhaul its retail sales strategy.  Can Sievert be trusted when he wrote, “After this process is complete, I do not envision any additional widespread company reductions again in the foreseeable future.”???

Telecom layoffs this year are surging.  AT&T, Verizon, Crown Castle, Ericsson, Airspan, Cambium Networks, Cisco Systems and Dish Network are among telecom companies cutting jobs. Moreover, both AT&T and Verizon have recently embarked on new cost-cuttingprograms on top of previous cost reduction campaigns.

The layoffs come as T-Mobile and its rival cell carriers face increased competition from cable companies that are offering mobile plans and piggybacking on the carrier’s networks via MVNO relationships.   Other MVNOs, or mobile virtual network operators, unrelated to the cable companies are also offering lower-priced cell plans.

References:

https://www.sec.gov/Archives/edgar/data/1283699/000119312523219679/d507613dex991.htm

https://www.lightreading.com/5g-and-beyond/how-and-why-t-mobile-is-cutting-5000-jobs/d/d-id/786245?

https://www.geekwire.com/2023/t-mobile-will-lay-off-5000-employees-7-of-its-workforce-read-ceos-memo/

https://www.wsj.com/business/telecom/t-mobile-us-to-lay-off-7-of-workforce-df368047

Inside AT&T’s newly expanded $8 billion cost-reduction program & huge layoffs

T-Mobile and Google Cloud collaborate on 5G and edge compute

Ookla Q2-2023 Mobile Network Operator Speed Tests: T-Mobile is #1 in U.S. in all categories!

 

BT, Nokia and Qualcomm demonstrate 2CC CA on uplink of a 5G SA network

UK incumbent telco BT announced today that it has successfully demonstrated two component carrier aggregation (2CC CA) on the uplink of a 5G SA network at its Adastral Park research centre.  The 5G SA technology was supplied by Nokia and Qualcomm.

BT also simultaneously achieved 4CC CA on the downlink, and claims it is the first telco in Europe to have demonstrated 5G SA uplink and downlink carrier aggregation at the same time. In terms of throughput, BT recorded a peak download speed of 1 Gbps and peak upload of 230 Mbps.

  • BT Group and Nokia demonstrated enhanced 5G SA uplink performance through aggregation of two spectrum carriers in field trial in live network spectrum
  • Aggregation of two frequency bands for uplink boosts performance for EE’s future 5G SA network, key to supporting growing customer use-cases such as gaming and live-streaming
  • BT Group first in Europe to achieve both 2CC CA uplink and 4CC CA downlink simultaneously

When BT detailed its wideband FDD trial, it noted that the 5G SA specification from 3GPP is currently based on a single uplink carrier, so why try and aggregate uplink carriers?  BT said that uplink carrier aggregation is something to have handy in future, when data demand inevitably calls for ever more uplink capacity.

5G Carrier Aggregation over a 5G SA network, which combines several transmission bands into one connection, is a key capability to deliver the high-performance 5G service that customers expect. Every new carrier added allows for higher capacity and speed directly to customer devices.

Last year, BT and Nokia announced 5G SA 4CC CA downlink. Now, by achieving both 5G SA 2CC CA uplink and 4CC CA downlink simultaneously, BT can deliver significant uplift in connections performance from the device to the network by increasing throughput and capacity, as well as unlocking scope to push uplink performance further in the future.

The tests were conducted at BT Group’s facility in Adastral Park, UK, using Nokia’s 5G AirScale portfolio and a device powered by a Snapdragon® 5G Modem-RF System from Qualcomm Technologies, Inc., following initial lab-based trials.* Speeds of over 230 Mbps in the uplink were reached — including the wider 5G FDD carrier at 40 MHz in 2600 MHz — as well as over 1 Gbps in the downlink. The demonstration was conducted with 15, 30 and 40 MHz NR2600 carrier independently aggregated with a 40 MHz NR3500 carrier component.

The work is part of BT Group’s efforts to ensure that, when 5G SA services are launched over EE, it maintains its unbeatable 5G network for customers.**

Greg McCall, Chief Networks Officer, BT Group, commented: “Carrier aggregation will be key to delivering the very best 5G experience to our customers, with this latest trial in partnership with Nokia demonstrating significant performance increases in terms of uplink speeds. This builds on last year’s success of achieving 4CA in 5G SA downlink, and we look forward to achieving further milestones in this space as we continue to progress towards 5G SA.”

Mark Atkinson, SVP, Radio Access Networks PLM at Nokia, said: “This successful trial with our long-standing partner BT, is another great example of Nokia’s unrivalled leadership in 5G carrier aggregation technology. Multi-component carrier aggregation helps mobile operators to maximise their radio network assets and provide the highest 5G data rates to subscribers in more locations.”

Enrico Salvatori, Senior Vice President and President, Qualcomm Europe/MEA, Qualcomm Europe Inc, said: “We are proud of our continued collaboration with BT to bring our latest 5G technologies to consumers. 2CC uplink carrier aggregation is expected to improve uplink speeds by up to 2X, to give a better user experience overall.  Consumers would potentially be able to upload and share higher quality videos faster online, such as when attending concerts and when watching and streaming games online. We look forward to the future and what else is to come with our continued collaboration with BT.

* Snapdragon is a trademark or registered trademark of Qualcomm Incorporated.

** ‘Unbeatable 5G network’: Based on analysis from the RootMetrics® UK RootScore® Report, H1 (Jan – June) 2023. Tested at locations across the UK with the best commercially available smartphones on 4 national mobile networks across all available network types. Your experiences may vary. The RootMetrics award is not an endorsement of EE. Visit ee.co.uk/claims for more details.

About BT Group:

BT Group is the UK’s leading provider of fixed and mobile telecommunications and related secure digital products, solutions and services. We also provide managed telecommunications, security and network and IT infrastructure services to customers across 180 countries.

BT Group consists of three customer-facing units: Business covers companies and public services in the UK and internationally; Consumer serves individuals and families in the UK; Openreach is an independently governed, wholly owned subsidiary wholesaling fixed access infrastructure services to its customers – over 650 communications providers across the UK.

British Telecommunications plc is a wholly owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on the London Stock Exchange.

For more information, visit www.bt.com/about

References:

https://newsroom.bt.com/bt-group-and-nokia-demonstrate-new-network-capabilities-to-meet-future-consumer-demand/

https://telecoms.com/523289/bt-and-nokia-reach-new-5g-sa-carrier-aggregation-milestone/

BT tests 4CC Carrier Aggregation over a standalone 5G network using Nokia equipment

https://telecoms.com/523069/bt-teases-5g-sa-progress-with-wideband-fdd-trial/

Ericsson and MediaTek set new 5G uplink speed record using Uplink Carrier Aggregation

T-Mobile US achieves speeds over 3 Gbps using 5G Carrier Aggregation on its 5G SA network

Nokia, China Mobile, MediaTek speed record of ~3 Gbps in 3CC carrier aggregation trial

 

Dell’Oro: RAN market declines at very fast pace while Mobile Core Network returns to growth in Q2-2023

A new report from Dell’Oro Group says RAN sales declined at their fastest pace in nearly seven years during Q2-2023. According to preliminary findings from the market research firm, following the ‘intense ramp-up’ from 2017 through 2021.  While RAN revenues stabilized in 2022 and 1Q23, market conditions worsened in the second quarter, resulting in RAN declining at the fastest pace in nearly seven years. The decline was not unexpected by Dell’Oro, yet the magnitude of the reversal was much steeper than anticipated.

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The RAN market decline was surely expected by IEEE Techblog readers, as this publication has warned for years about the commercial failure of 5G mobile networks.

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“It is tempting to point the finger at data traffic patterns, 5G monetization challenges, and the odds stacked against an economy struggling with persistent levels of elevated inflation,” said Stefan Pongratz, Vice President at Dell’Oro Group. “Although these are, of course, important factors, we attribute the poor performance in the quarter to the clouds forming in North America. Alongside challenging 5G comparisons, the decline was amplified by the extra inventory accumulated over the past couple of years to mitigate supply chain risks,” Pongratz added.

Additional highlights from the Q2-2023 RAN report:

  • Top 5 RAN suppliers for 1H23 include Huawei, Ericsson, Nokia, ZTE, and Samsung.
  • Nokia recorded the largest RAN revenue share gains between 2022 and 1H23.
  • Huawei’s quarterly RAN share reached the highest level in three years. Huawei’s 2Q23 RAN revenue share outside of North America was as large as Ericsson and Nokia combined.
  • Ericsson and Samsung’s RAN revenue shares declined between 2022 and 1H23.
  • Regional projections are mostly unchanged; however, the short-term outlook has been revised upward in APAC excluding China and downward in the North American region.
  • Global RAN revenues are expected to decline in 2023.

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In a separate report, Dell’Oro says the Mobile Core Network (MCN) market returned to growth in 2Q 2023. The China region returned to growth and Europe, the Middle East, and Africa (EMEA) had the strongest quarterly growth rate since 3Q 2020.

“The MCN market shined on many fronts this quarter. The China region returned to growth with increased spending by two of the four Mobile Network Operators (MNOs). The EMEA region had its best quarterly growth rate since 2020, Huawei had record high revenues for the quarter, and Ericsson had its highest growth rate since 2Q20, as examples,” stated Dave Bolan, Research Director at Dell’Oro Group. “As a result, we are raising our outlook for 2023 year-over-year (Y/Y) growth rate from low single-digit percent to mid-single-digit percent.”

“As of 2Q 2023, we counted 44 Mobile Network Operators (MNOs) that have launched commercial 5G SA networks. One was added in 2Q 2023, Telefónica – Spain. The North America and EMEA regions of the 5G MCN segment Y/Y growth rates were in the triple-digit percent, signaling capacity additions to the 5G SA networks in both regions,” continued Bolan.

Editor’s Note:  Despite years of promises, neither AT&T or Verizon has yet to deploy a 5G SA core network, without which no 3GPP defined 5G features/functions are possible.

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Additional highlights from the 2Q 2023 Mobile Core Network and Multi-Access Edge Computing Report include:

  • The top MCN vendors worldwide for 2Q 2023 were Huawei, Ericsson, Nokia, and ZTE.
  • The top 5G MCN vendors worldwide for 2Q 2023 were Huawei, Ericsson, ZTE, and Nokia.
  • Five MNOs launched commercial 5G SA networks in 1H 2023.

References:

RAN Declines at the Fastest Pace in Seven Years, According to Dell’Oro Group

Mobile Core Network Market Returns to Growth in 2Q 2023, According to Dell’Oro Group

Dell’Oro: RAN Market to Decline 1% CAGR; Mobile Core Network growth reduced to 1% CAGR

Dell’Oro: OpenRAN revenue forecast revised down

​ through 2027

Dell’Oro: U.S. suppliers ~20% of global telecom equipment market; struggling in RAN business

 

 

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