Author: Alan Weissberger
Initiatives and Analysis: Nokia focuses on data centers as its top growth market
Telco is no longer the top growth market for Nokia. Instead, it’s data centers, said Nokia’s CEO Pekka Lundmark on the company’s Q3 2024 earnings call last week. “”Across Nokia, we are investing to create new growth opportunities outside of our traditional communications service provider market,” he said. “We see a significant opportunity to expand our presence in the data center market and are investing to broaden our product portfolio in IP Networks to better address this.”There will be others as well, but that will be the number one. This is obviously in the very core of our strategy.”
Lundmark said Nokia’s telco total addressable market (TAM) is €84 billion, while its data center total addressable market is currently at €20 billion. “I mean, telco TAM will never be a significant growth market,” he added to no one’s surprise.
Nokia’s recent deal to acquire fiber optics equipment vendor Infinera for $2.3 Billion might help. The Finland based company said the combination with Infinera is expected to accelerate its path to double-digit operating margins in its optical-networks business unit (which was inherited from Alcatel-Lucent) . The transaction (expected to close in the first half of 2025) and the recent sale of submarine networks will reshape Nokia’s Network Infrastructure business to be built around fixed networks, internet-protocol networks and optical networks, the company said. Data centers not only require GPUs, but they also require optical networking to support their AI workloads. Lundmark said the role of optics will increase, not only in connections between data centers, but also inside data centers to connect servers to each other. “Once we get there, that market will be of extremely high volumes,” he said.
Pekka Lundmark, Nokia CEO– Photo: Arno Mikkor
- In September, Nokia announced the availability of its AI era, Event-Driven Automation (EDA) platform. Nokia EDA raises the bar on data center network operations with a modern approach that builds on Kubernetes to bring highly reliable, simplified, and adaptable lifecycle management to data center networks. Aimed at driving human error in network operations to zero, Nokia’s new platform reduces network disruptions and application downtime while also decreasing operational effort up to 40%. Nokia says its new EDA platform helps data center operators reduce errors in network operations. Nokia said it hopes to remove the risk of human error and reduce network disruptions and application downtime.
- A highlight of the recent quarter is a September deal with self proclaimed “AI hyperscalar” CoreWeave [1.] which selected Nokia to deploy its IP routing and optical transport equipment globally as part of its extensive backbone build-out, with immediate roll-out across its data centers in the U.S. and Europe. Raymond James analyst Simon Leopold said the CoreWeave win was good for Nokia to gain some exposure to AI, and he wondered if Nokia had a long-term strategy of evolving customers away from its telco base into more enterprise-like opportunities. “The reason why CoreWeave is so important is that they are now the leading GPU-as-a- service company,” said Lundmark. “And they have now taken pretty much our entire portfolio, both on the IP side and optical side. And as we know, AI is driving new business models, and one of the business models is clearly GPU-as-a-service,” he added.
Note 1. CoreWeave rents graphical processing units (GPUs) to artificial intelligence (AI) developers. A modern, Kubernetes native cloud that’s purpose-built for large scale, GPU-accelerated workloads. Designed with engineers and innovators in mind, CoreWeave claims to offer unparalleled access to a broad range of compute solutions that are up to 35x faster and 80% less expensive than legacy cloud providers.
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Nokia says its IP Interconnection can provide attractive business benefits to data center customers including:
- Improved security – Applications and services can be accessed via private direct connections to the networks of cloud providers collocated in the same facility without traversing the internet.
- Reduced transport costs – Colocated service providers, alternative network providers and carrier neutral network operators offer a wide choice of connections to remote destinations at a lower price.
- Higher performance and lower latency – As connections are direct and are often located closer to the person or thing they are serving, there is a reduction in latency and an increase in reliability as they bypass multiple hops across the public internet.
- More control – Through network automation and via customer portals, cloud service providers can gain more control of their cloud connectivity.
- Greater flexibility – With a wider range of connectivity options, enterprises can distribute application workloads and access cloud applications and services globally to meet business demands and to gain access to new markets.
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Nokia’s Data Center Market Risks:
The uncertainty is whether spending on GPUs and optical network equipment in the data center will produce the traffic growth to justify a decent ROI for Nokia. Also, the major cloud vendors (Amazon, Google, Microsoft and Facebook) design, develop, and install their own fiber optic networks. So it will likely be the new AI Data Center players that Nokia will try to sell to. William Webb, an independent consultant and former executive at Ofcom told Light Reading, “There may be substantially more traffic between data centers as models are trained but this will flow across high-capacity fiber connections which can be expanded easily if needed.” Text-based AI apps like ChatGPT generate “minuscule amounts of traffic,” he said. Video-based AI will merely substitute for the genuinely intelligent form.
References:
https://www.datacenterdynamics.com/en/news/nokia-eyes-data-center-market-growth-as-q3-sales-fall/
https://www.nokia.com/blog/enhance-cloud-services-with-high-capacity-interconnection/
https://www.lightreading.com/5g/telecom-glory-days-are-over-bad-news-for-nokia-worse-for-ericsson
Nokia wins multi-billion dollar contract from Bharti Airtel for 5G equipment
Nokia has secured a multi-billion dollar contract with India’s Bharti Airtel, one of the country’s leading telecom operators, which is expanding its 5G network. The deal with Airtel would be for Nokia’s latest AirScale mobile radios that support upgrading an existing network to 5G-Advanced and reduces energy costs, according to the sources.
- Ericsson won a multi-billion dollar contract from Bharti Airtel, Reuters reported on Monday. Airtel is also in talks with Samsung about buying 5G equipment, a source told Reuters.
- Samsung has been trying to grow its network equipment business, but has so far lagged Nokia and Ericsson. Samsung won its first 5G contract with Airtel in 2022. India has blocked its mobile carriers from using 5G telecom equipment made by China’s Huawei.
Backgrounder:
India is the world’s second-largest smartphone market where telcos such as Airtel, Reliance Jio and Vodafone Idea have been spending billions of dollars to upgrade their networks to 5G. Bharti Airtel’s 5G market share in India is over 90 million subscribers, as of June 2024. Airtel and Reliance Jio are the only two telcos in India that offer 5G services.
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The Nokia-Bharti Airtel deal is indicative of the intensifying competition among telecom operators and equipment manufacturers in India’s 5G market. For Nokia, the agreement represents a significant rebound and consolidation of its presence in India, amidst previous challenges and the competitive pressures exerted by rivals such as Ericsson and Samsung.As India stands on the cusp of a 5G revolution, the successful execution of this deal could serve as a blueprint for similar agreements, thereby accelerating the pace of 5G deployment across the nation.
India Mobile Congress 2024 dominated by AI with over 750 use cases
As expected, Artificial Intelligence (AI) took center stage at India Mobile Congress 2024 (IMC 2024), as a diverse spectrum of tech and telecom companies, including startups and educational institutions, showcased over 900 technology use case scenarios, including 750 AI-based use cases during the 4-day conference in New Delhi, India. IMC 2024 hosted over 400 exhibitors, about 900 startups and participation from over 120 countries.
The focus of the AI-enabled use cases was on conservation, convenience, efficiency, safety, automating hazardous tasks, assisting humans and others. AI-based virtual agents were taking over the workloads at contact centers while addressing the shortage of doctors in remote areas. Some key use cases included solutions for railway safety, including AI-based systems that can detect and send alerts on unusual activity on tracks. In particular:
- Reliance Jio offered attendees a glimpse of PhoneCall AI, a highly anticipated feature for transcribing and summarizing phone calls, which is currently in alpha testing phase. Jio also presented a 5G intelligent village concept powered by AI. Farmers can now use their mobile phones to take pictures of crops, allowing AI to detect diseases and recommend solutions, improving crop health and yield. Jio facilitates the delivery of these solutions to homes or nearby retail stores, empowering farmers by enabling higher revenue and better employment opportunities. Jio also showcased its JioKrishi Agri IoT device for agriculture. The IoT device with multiple sensors takes farming into the digital age, providing real-time data on crop health and enabling optimal irrigation and fertilization. Connected to the AI-enabled JioKrishi app, farmers can receive recommendations for fertilizers or pesticides, including the quantities to use, and order farm supplies—ensuring end-to-end farm solutions.
- Bharti Airtel launched India’s first AI-powered spam detection solution to combat spam calls and messages. This network-based tool provides real-time alerts, helping users reduce spam effectively. Ericsson showcased a 5G-powered robotic dog, Rocky, who can assist authorities with efficient emergency response by sending alerts in time that can help authorities deal with emergencies like fire outbreaks.
- Vodafone Idea demonstrated the transmission of real-time diagnostic reports over its high-speed network, enabling doctors to conduct video consultations remotely. The solution offers over 30 medical tests, including vitals and blood screenings, at a cost of under ₹250, making healthcare more accessible in rural areas.
- C3iHub, a Technology Innovation Hub established at IIT Kanpur and funded by Department of Science & Technology (DST), addressed cybersecurity of cyber-physical systems, with a key focus on critical infrastructure, automotive, and drones.
- Indian Council of Agriculture Research (ICAR) showcased over a dozen AI-based solutions for smart agriculture and even aquarium management, with AI-enabled feed for fish. The AI system detects the right time for feeding and releases food accordingly while also monitoring water quality and sending alerts to owners. Mahindra University students displayed AI-based solutions to bolster shrimp farming (raising shrimp in controlled environments). The tool constantly monitors and ensures conditions are ideal for shrimp farming. India Mobile Congress, Asia’s largest digital technology forum, has become a well-known platform across the globe for showcasing innovative solutions, services and state-of-the-art use cases for industry, government, academics, startups and other key stakeholders in the technology and telecom ecosystem.
- Nokia showcased technologies spanning 5G, 6G, AI/ML and network infrastructure, aimed at driving innovation and promoting a sustainable future.
- Prime Minister Narendra Modi interacted with pioneering startups including Signalchip, Wisig Networks, and female led startups like Astrome and Easiofy Solutions, showcasing India’s leadership in cutting-edge technology innovations.
IMC 2024 showcased groundbreaking ideas and innovations from prestigious academic institutions like IITs and IIMs. Through LLMs such as BharatGen, IMC highlighted the cutting-edge research and technological advancements emerging from these institutions, demonstrating their role in shaping the future of telecom and technology in India.
References:
https://telecomtalk.info/jio-showcases-ai-tools-industry5-5g-imc2024/983400/
India’s Success in 5G Standards; IIT Hyderabad & WiSig Networks Initiatives
At long last: India enters 5G era as carriers spend $ billions but don’t support 5Gi
India Mobile Congress 2018: Telecom Equipment Vendors to Invest over Rs 4,000 crore in India; Samsung in Spotlight
U.S. Cellular to Sell Spectrum Licenses to Verizon in $1 Billion Deal
The WSJ reports that U.S. Cellular is selling a portion of its retained spectrum licenses to Verizon for $1 billion in cash as it looks to monetize the spectrum that wasn’t included in the proposed sale to T-Mobile. The Chicago-based telco, which caters to a base of mostly rural customers (approximately 4.5 million) across several states, on Friday said the deal includes the sale of 663 million megahertz point-of-presences of its cellular spectrum licenses. The deal is expected to close in mid-2025.
Under the terms of the agreement, U.S. Cellular will also sell 11 million megahertz point-of-presences of its advanced wireless services, and 19 million megahertz point-of-presences of its personal communications services licenses. The company said it has entered into additional agreements with two other mobile operators for the sale of other selected spectrum licenses.
TDS, the majority shareholder of U.S. Cellular, has delivered its written consent to approve the Verizon transaction.
Each transaction is dependent upon the closing of the proposed sale of the company’s cellular wireless operations and select spectrum assets to T-Mobile.
In May, T-Mobile agreed to buy much of U.S. Cellular’s operations which included about 30% of UScellular spectrum holdings, all of its customers and its retail stores in a deal worth $4.4 billion. That deal still requires regulatory approvals. It would give T-Mobile more than four million new customers and a trove of valuable spectrum rights to carry more of their data over the air.
According to the financial analysts at New Street Research, UScellular managed to score a higher-than-expected sale price to Verizon. “We valued these licenses at $812 million, and so this transaction is a 23% premium,” they wrote in a note to investors Friday morning.
Importantly, they argued that, as a result, the low band spectrum owned by EchoStar’s Dish Network might be worth more than they had previously calculated. “If we apply the premium to lowband licenses, based on this new mark, Dish’s 600 MHz portfolio would be worth $16 billion, up from $12 billion currently,” they wrote.
The New Street analysts speculated that UScellular’s remaining spectrum holdings will eventually be sold.
“This spectrum transaction took longer than we expected, and it is for fewer of the licenses than we expected,” they wrote of UScellular’s new deal with Verizon. “The monetization of the remaining [UScellular] spectrum could take time, but it will all be sold eventually.”
They argued that UScellular’s remaining, unsold spectrum holdings – which stretch across lowband holdings like 700MHz as well as mid band spectrum like C-band – could be worth as much as $3.2 billion.
But the analysts cautioned that it can be difficult to extrapolate spectrum values from just one transaction alone. For example, the licenses involved in the transaction between Verizon and UScellular are mostly located in smaller markets and therefore may not be directly comparable to spectrum licenses located in bigger cities. Further, most of the spectrum involved in the deal is low band, and so values might be different for large chunks of mid band spectrum.
References:
https://www.lightreading.com/5g/how-verizon-s-1b-uscellular-spectrum-deal-affects-echostar-s-dish
T-Mobile to acquire UScellular’s wireless operations in $4.4 billion deal
UScellular adds NetCloud from Cradlepoint to its 5G private network offerings; Buyout coming soon?
Betacom and UScellular Introduce 1st Private/Public Hybrid 5G Network
UScellular’s Home Internet/FWA now has >100K customers
UScellular Launches 5G Mid-Band Network in parts of 10 states
Dell’Oro: Global RAN Market to Drop 21% between 2021 and 2029
According to a new report from Dell’Oro Group, the overall RAN market is now facing a second consecutive year of steep declines. That follows 40 to 50% revenue growth between 2017 and 2021. While the pace of decline is expected to moderate after 2024, downward pressure is likely to persist until 6G becomes a reality.
In addition to the typical market fluctuations that have shaped the RAN landscape over the past 30-plus years, the overpromising of 5G and its inability to significantly alter the flat revenue trend among operators are fueling increased skepticism regarding the need for substantial investments in new technologies (like 5G Advanced, 5G RedCap or O-RAN).
“Some skepticism is warranted. After all, operators invested over $2 trillion in wireless capex between 2010 and 2023 to build out 4G and 5G, yet revenues remain flat,” said Stefan Pongratz, Vice President of RAN and Telecom Capex research at Dell’Oro Group. “Looking ahead, operators will need to optimize their spectrum roadmaps to address various data traffic scenarios. Our base case assumes that mobile data traffic growth will continue to slow, enabling operators to improve their capital intensity ratios, which will in turn put further downward pressure on the RAN market. However, additional capacity will eventually be required, and at that point, leveraging larger spectrum bands and the existing macro grid will likely offer the most cost-effective solution,” Pongratz added.
Additional highlights from the new 6G Advanced Research Report:
- Total RAN revenues are projected to trend downward until 2029
- 6G RAN revenues to approach $30 B by 2033
- Sub-7 GHz and CM-wave macros are expected to dominate the 6G mix by 2033
Dell’Oro Group’s 6G Advanced Research Report offers a complete overview of the RAN market by region and by technology, with tables covering manufacturers’ revenue for 5G NR and 6G by frequency, including Sub-7 GHz, cmWave, and mmWave. The report also covers Cloud RAN, small cells, and Massive MIMO. To purchase this report, please contact by email at [email protected].
References:
6G RAN to Approach $30 B by 2033, According to Dell’Oro Group
https://www.ericsson.com/en/blog/2023/6/cm-wave-spectrum-6g-potent-enabler
Dell’Oro: RAN market still declining with Huawei, Ericsson, Nokia, ZTE and Samsung top vendors
Dell’Oro & Omdia: Global RAN market declined in 2023 and again in 2024
Highlights of Dell’Oro’s 5-year RAN forecast
Dell’Oro: RAN market declines at very fast pace while Mobile Core Network returns to growth in Q2-2023
Dell’Oro: 2023 global telecom equipment revenues declined 5% YoY; Huawei increases its #1 position
Nokia, Windstream Wholesale and Colt complete world’s first ultra-fast 800GbE optical and IP service trial
Nokia, Windstream, and Colt Technology Services have completed an 800 Gigabit Ethernet (800 GbE) trial spanning 8,500km between London and Chicago over a subsea and terrestrial route. The trial showcased innovative power-saving networking technologies from the three global tech businesses to test the boundaries of next-generation wavelength, capacity, speed and latency between two of the world’s largest financial trading hubs.
Colt’s five transatlantic subsea cables and part of its extensive terrestrial fiber optic network were connected with Windstream Wholesale’s domestic U.S. low latency, optical fiber Intelligent Converged Optical Network (ICON) monitoring speed and performance. Colt and Windstream Wholesale have partnered to demonstrate the world’s first transoceanic 800 gigabit ethernet (GbE) end-to-end service transport from router to router over 1Tbps optical transport. The trial was successfully delivered using Nokia’s sixth-generation Photonic Service Engine (PSE-6s) coherent optics and 7750 Service Router (SR) high-performance routing platforms boosting internet service speeds and supporting ultra-high wavelength capacity, while maintaining power efficiency.
The companies say that 800G marks a breakthrough in service bandwidth, doubling capacity to support advanced network applications like AI data center networking, content delivery networks, and financial data hub connections.
| Ethernet Rate | AUI | BP | Cu Cable | MMF 50m | MMF 100m | SMF 500m | SMF 2km |
|---|---|---|---|---|---|---|---|
| 400 Gb/s | — | — | — | — | — | — | 4 pairs |
| 800 Gb/s | 8 lanes | 8 lanes | 8 pairs | 8 pairs | 8 pairs | 8 pairs | 8 pairs |
Quotes:
Buddy Bayer, Chief Operating Officer of Colt Technology Services, said: “Pushing the boundaries of technology innovation is a fundamental part of our customer commitment: it means we stay a step ahead of the market, so we’re ready when our customers ask, “What’s next for us?” This trial has seen us build a powerful industry collaboration to explore the ‘what’s next?’. It’s tested the limits of infrastructure performance and capability across thousands of miles of land and sea with incredible networking technologies, and it’s demonstrated the power and potential of what can be achieved, without skipping a beat.”
Joe Scattareggia, President of Windstream Wholesale, said: “Our latest innovation represents a true game-changer for global connectivity. By partnering with two extraordinary leaders in the industry, we’re enabling unprecedented bandwidth capabilities that are essential for driving AI-powered applications worldwide for our customers. As an optical technology leader, Windstream Wholesale and our partners are establishing 800GbE as the next evolutionary advancement increase for wave services. This collaboration has pushed the boundaries of what’s possible, creating a network solution like no other. Together, we’re not just meeting the demands of the future—we’re shaping it.”
Federico Guillén, President of Network Infrastructure at Nokia, said: “Such an ambitious project — to link two of the world’s most important financial hubs — sets the bar very high for network capacity, speed, security and reliability. This demonstration would simply not have been possible without the commitment of Nokia and our partners to the highest standards of innovation in networking technology. Together, we are redefining the art of the possible for IP and optical networks enabling cross-continental subsea and terrestrial communications.”
Following the successful completion of the trial, the organizations are currently exploring options to bring 800GbE connectivity services to market for global business customers.
Resources and additional information:
Webpage: Nokia PSE-6s
Webpage: Nokia Optical Networks
About Nokia:
As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs.
With truly open architectures that seamlessly integrate into any ecosystem, our high-performance networks create new opportunities for monetization and scale. Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.
About Colt Technology Services:
Colt Technology Services (Colt) is a global digital infrastructure company which creates extraordinary connections to help businesses succeed. Powered by amazing people and like-minded partners, Colt is driven by its purpose: to put the power of the digital universe in the hands of its customers, wherever, whenever and however they choose.
Since 1992, Colt has set itself apart through its deep commitment to its customers, growing from its heritage in the City of London to a global business spanning 40+ countries, with over 6,000 employees and more than 80 offices around the world. Colt’s customers benefit from expansive digital infrastructure connecting 32,000 buildings across 230 cities, more than 50 Metropolitan Area Networks and 250+ Points of Presence across Europe, Asia, the Middle East, Africa and North America’s largest business hubs.
Privately owned, Colt is one of the most financially sound companies in the sector. Obsessed with delivering industry-leading customer experience, Colt is guided by its dedication to customer innovation, by its values and its responsibility to its customers, partners, people and the planet.
For more information, please visit www.colt.net
About Windstream Wholesale:
Windstream Wholesale is an innovative optical technology leader that delivers fast, flexible, and customized wavelength and dark fiber solutions to carriers, content providers, and hyperscalers in the U.S. and Canada. Windstream Wholesale is one of three brands managed by Windstream. The company’s quality-first approach connects customers to new opportunities and possibilities by delivering a full suite of advanced communications services. Windstream also offers fiber-based broadband to residential and small business customers in 18 states as well as managed cloud communications and security services to mid-to-large enterprises and government entities across the U.S. Windstream is a privately held company headquartered in Little Rock, Ark. Additional information about Windstream Wholesale is available at windstreamwholesale.com. Follow us on X (Twitter) @Windstream and LinkedIn at @Windstream.
To view the Windstream Wholesale network map, visit https://www.windstreamwholesale.com/wp-content/uploads/2022/05/Windstream-Wholesale-National-Network.pdf
References:
https://standards.ieee.org/beyond-standards/ethernets-next-bar/
AI adoption to accelerate growth in the $215 billion Data Center market
Ethernet Alliance multi-vendor interoperability demo (10GbE to 800GbE) at OFC 2023
Cisco 800G line card for Cisco 8000 Series Routers powered by Silicon One ASIC
Reliance Jio vs Starlink: administrative process or auction for satellite broadband services in India?
Reliance Jio has argued that India’s telecom regulator incorrectly concluded that home satellite broadband spectrum should be allocated and not auctioned, according to a letter seen by Reuters. That intensifies Jio’s face-off with Elon Musk’s Starlink.
Starlink is expected to launch broadband satellite service in India soon after receiving a Global Mobile Personal Communication by Satellite (GMPCS) license. The Telecom Ministry has granted in-principle approval, and the Home Ministry is expected to finalize the vetting process. Starlink’s initial strategy was to provide satellite broadband directly to consumers, but the company may now only offer business services in India
India’s telecom regulator, TRAI, is holding a public consultation, but Reliance in a private Oct. 10 letter seen by Reuters asked for the process to be started afresh as the watchdog has “pre-emptively interpreted” that allocation is the way forward. “TRAI seems to have concluded, without any basis, that spectrum assignment should be administrative,” Reliance’s senior regulatory affairs official Kapoor Singh Guliani wrote in the letter to India’s telecoms minister Jyotiraditya Scindia.
References:
https://www.reuters.com/business/media-telecom/ambanis-reliance-lobbies-india-minister-satellite-spectrum-new-face-off-with-2024-10-13/
India’s TRAI releases Recommendations on use of Tera Hertz Spectrum for 6G
FCC: More competition for Starlink; freeing up spectrum for satellite broadband service
SpaceX launches first set of Starlink satellites with direct-to-cell capabilities
Communications Minister: India to be major telecom technology exporter in 3 years with its 4G/5G technology stack
India’s Trai: Coexistence essential for efficient use of mmWave band spectrum
OneWeb, Jio Space Tech and Starlink have applied for licenses to launch satellite-based broadband internet in India
Starlink to explore collaboration with Indian telcos for broadband internet services
SNS Telecom & IT: $6 Billion Private LTE/5G Market Shines Through Wireless Industry’s Gloom
SNS Telecom & IT’s latest research report estimates that the private LTE and 5G network market revenues will be $6 Billion by the end of 2027. It’s one of the few bright spots in the otherwise gloomy wireless telecommunications industry, which is marked by a slowdown in public mobile network infrastructure spending and service providers struggling to monetize their existing 5G investments, particularly in the consumer segment.
Historically a niche segment of the wider wireless telecommunications industry, private 4G-LTE and 5G networks – also referred to as NPNs (Non-Public Networks) in 3GPP terminology – have rapidly gained popularity in recent years due to privacy, security, reliability and performance advantages over public mobile networks and competing wireless technologies as well as their potential to replace hardwired connections with non-obstructive wireless links.
Their expanding influence is evident from the recent use of rapidly deployable private cellular network-in-a-box systems for professional TV broadcasting, enhanced fan engagement and gameplay operations at major sports events, including Paris 2024 Olympics, 2024 UEFA European Football Championship, North West 200 Motorcycle Race, 2024 World Rowing Cup III, New York Sail Grand Prix, 2024 PGA Championship, 2024 UFL Championship Game and 2024 NFL International Games, as well as the Republican and Democratic national conventions in the run up to the 2024 United States presidential election.
Other examples of high-impact private LTE/5G engagements include but are not limited to multi-site, multi-national private cellular deployments at the industrial facilities of Airbus, BMW, Chevron, John Deere, LG Electronics, Midea, Tesla, Toyota, Volkswagen, Walmart and several other household brand names; Aramco’s 450 MHz 3GPP network project in Saudi Arabia and ADNOCS’ 11,000-square kilometer private 5G network for connecting thousands of remote wells and pipelines in the UAE; defense sector 5G programs for the adoption of tactical cellular systems and permanent private 5G networks at military bases in the United States, Germany, Spain, Norway, Japan and South Korea; service territory-wide private wireless projects of 450connect, Ameren, CPFL Energia, ESB Networks, Evergy, Neoenergia, PGE (Polish Energy Group), SDG&E (San Diego Gas & Electric), Tampa Electric, Xcel Energy and other utility companies; and the recent implementation of a private 5G network at Belgium’s Nobelwind offshore wind farm as part of a broader European effort to secure critical infrastructure in the North Sea.
There has also been a surge in the adoption of private wireless small cells as a cost-effective alternative to DAS (Distributed Antenna Systems) for delivering neutral host public cellular coverage in carpeted enterprise spaces, public venues, hospitals, hotels, higher education campuses and schools. This trend is particularly prevalent in the United States due to the open accessibility of the license-exempt GAA (General Authorized Access) tier of 3.5 GHz CBRS spectrum. Some examples of private network deployments supporting neutral host connectivity to one or more national mobile operators include Meta’s corporate offices, City of Hope Hospital, SHC (Stanford Health Care), Sound Hotel, Gale South Beach Hotel, Nobu Hotel, ASU (Arizona State University), Cal Poly (California Polytechnic State University), University of Virginia, Duke University and Parkside Elementary School.
SNS Telecom & IT estimates that global spending on private LTE and 5G network infrastructure for vertical industries will grow at a CAGR of approximately 20% between 2024 and 2027, eventually accounting for more than $6 Billion by the end of 2027. Close to 60% of these investments – an estimated $3.5 Billion – will be directed towards the buildout of standalone private 5G networks, which will become the predominant wireless communications medium to support the ongoing Industry 4.0 revolution for the digitization and automation of manufacturing and process industries. This unprecedented level of growth is likely to transform private LTE and 5G networks into an almost parallel equipment ecosystem to public mobile operator infrastructure in terms of market size by the late 2020s. By 2030, private networks could account for as much as a fifth of all mobile network infrastructure spending.
The “Private LTE & 5G Network Ecosystem: 2024 – 2030 – Opportunities, Challenges, Strategies, Industry Verticals & Forecasts” report presents an in-depth assessment of the private LTE and 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, four spectrum licensing models, 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 7,300 global private LTE/5G engagements – as of Q4’2024.
The report will be of value to current and future potential investors into the private LTE and 5G market, as well as LTE/5G equipment suppliers, system integrators, private network specialists, mobile operators and other ecosystem players who wish to broaden their knowledge of the ecosystem.
For further information concerning the SNS Telecom & IT publication “Private LTE & 5G Network Ecosystem: 2024 – 2030 – Opportunities, Challenges, Strategies, Industry Verticals & Forecasts” please visit: https://www.snstelecom.com/private-lte
About SNS Telecom & IT:
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 6G, 5G, LTE, Open RAN, vRAN (Virtualized RAN), small cells, mobile core, xHaul (Fronthaul, Midhaul & Backhaul) transport, network automation, mobile operator services, FWA (Fixed Wireless Access), neutral host networks, private 4G/5G cellular networks, public safety broadband, critical communications, MCX (Mission-Critical PTT, Video & Data), IIoT (Industrial IoT), V2X (Vehicle-to-Everything) communications and vertical applications.
References:
https://www.snstelecom.com/private-lte
SNS Telecom & IT: Private 5G Network market annual spending will be $3.5 Billion by 2027
SNS Telecom & IT: Private LTE & 5G Network Infrastructure at $6.4 Billion by end of 2026
Dell’Oro: Private RAN revenue declines slightly, but still doing relatively better than public RAN and WLAN markets
Wipro and Cisco Launch Managed Private 5G Network-as-a-Service Solution
Markets and Markets: Global AI in Networks market worth $10.9 billion in 2024; projected to reach $46.8 billion by 2029
According to research firm Markets and Markets, the global AI in Networks market is expected to be valued at USD 10.9 billion in 2024 and is projected to reach USD 46.8 billion by 2029 and grow at a CAGR of 33.8% from 2024 to 2029. AI in networks market is experiencing high growth driven by increasing adoption of 5G technology, edge computing, IoT connected devices, and expansion of smart cities. Increasing deployment of 5G networks has led to the vast amount of network data, generated by high bandwidth application such as video streaming and online gaming, driving network operators to integrate AI driven solutions to manage network data and allocate resources to reduce network congestion. Network operators are also integrating AI driven solutions to automate network operations and predictive maintenance, to reduce human dependency and errors, leading to efficient network management.
Network operators invest heavily in developing AI-driven solutions to manage and optimize network traffic. AI in networks allows operators to efficiently perform network management tasks such as traffic routing, resource allocation, and network security. As the 5G technology advances, the demand for cybersecurity solutions will also rise, driving the AI in networks market.
Constraint: Data privacy and security concerns in AI in networks
Integration of artificial intelligence technology in the networking leads to various risks affiliated with collecting, storing, and transmitting network traffic data. AI driven network collect users and network operations data information, creating a high risk environment of privacy breaches, due to the rising cyberthreats. These cyberattacks may lead to unauthorized access to network and user data, disrupting network operations. Additionally, data generated by connected and Iot devices such as smartphones, smart home systems, surveillance system is collected by network, leads to concerns regarding unauthorized surveillance and cyberattacks.
Opportunity: Increasing prevalence of smart city initiatives
Rapid urbanization has led to the exapsnion of smart cities globally. Countries around the world are investing heavily towards smart infrastructure by integrating advanced technologies such as artificial intelligence (AI). For instance, smart city ecosystem consist of various sensors and connected and IoT devices, and to ensure efficient transmission and processing of data generated by these sensor and devices. AI driven network solutions play a vital role in collecting and processing of data, identifying anomalies and equipment failure based on present and historical data, helping network operator to schedule maintenance in advance and reduce downtime.
Challenge: Rapid change in the technology landscape
As the technology landscape evolves rapidly, AI presents a major challenge in the network market. As new technologies appear and current technology evolves, companies in the ecosystem must continuously invest in the research and development of changing market demand and advancements. Additionally, intense competition in the market and pressure to offer innovative solutions further restrict companies from maintaining market leadership. Companies’ negligence in identifying the technological shift can result in a decline in market share and revenue.
AI in networks market in North America will hold the highest market share during the forecast period.
The AI in networks market for North America is expected to hold the highest market share during the forecast period. This growth is attributed to the presence of leading AI and network technology companies in the region. These companies are investing heavily towards the advancement of technologies such as AI, 5G, edge computing, due to the high internet penetration rate in the region. The demand for high bandwidth network application such as video streaming and online gaming also on the rise, driving the investments and innovations towards AI driven solutions in network management.
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References:
https://www.marketsandmarkets.com/Market-Reports/ai-in-networks-market-131514910.html
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2021 U.S. Broadband Infrastructure law has been a colossal failure – who’s to blame?
The 2021 U.S. Investment and Jobs Act (IIJA), AKA the Bipartisan Infrastructure Law was signed into law November 15, 2021. It included $42.5 billion for states to expand broadband to “unserved,” mostly rural, communities. The White House said it would “Ensure every American has access to high-speed internet…. The Bipartisan Infrastructure Deal will deliver $65 billion to help ensure that every American has access to reliable high-speed internet through a historic investment in broadband infrastructure deployment. The legislation will also help lower prices for internet service and help close the digital divide, so that more Americans can afford internet access.”
In his speech at the Democratic National Convention, President Joe Biden trumpeted his broadband program in historic terms, calling it a national build-out “not unlike what Roosevelt did with electricity.” Democratic presidential nominee Kamala Harris helped create and promote the program as vice president, and on the campaign trail it could offer a way to show how the White House has delivered for rural Americans.
Yet almost three years later, ground hasn’t been broken on a single project! The Biden-Harris Administration recently said construction won’t start until next year at the earliest, meaning many projects won’t be up and running until the end of the decade. Who’s to blame?
- NTIA was expected to play a major role in the endeavor to connect every American to high-speed, affordable broadband. They intended to work closely with all stakeholders, including State and local governments, Tribal governments, industry, and community leaders, as well as across the Federal government to ensure that this bold investment is targeted to those who need it most. But they haven’t helped a bit!
- States must submit plans to the U.S. Commerce Department about how they’ll use the funds and their bidding process for providers. The Commerce Dept. has piled on mandates that are nowhere in the law and has rejected state plans that don’t advance progressive goals. Commerce hoped to spread the cash to small rural cooperatives, but the main beneficiaries will be large providers that can better manage the regulatory burden. Bigger businesses always win from bigger government.
- Commerce is all but refusing to fund anything other than fiber broadband, though satellite services like SpaceX’s Starlink and wireless carriers 5G FWA can expand coverage at lower cost. Extending 5G to rural communities costs a couple thousand dollars per connection. Building out fiber runs into the tens of thousands. Fiber networks will require more permits, which delay construction. But fiber will require more union labor to build. Commerce wants grant recipients to pay union-scale wages and not oppose union organizing.
- The Administration has also stipulated hiring preferences for “underrepresented” groups, including “aging individuals,” prisoners, racial, religious and ethnic minorities, “Indigenous and Native American persons,” “LGBTQI+ persons,” and “persons otherwise adversely affected by persistent poverty or inequality.”
- In Virginia, that leaves thousands of mostly rural residents stuck in a long-outdated version of the internet. According to the official state count, there are more than 100,000 homes and offices across Virginia with connection speeds slow enough to qualify for the $1.48 billion in funding. “People need to see it,” said Lynlee Thorne, a political director for Democratic campaign group Rural Ground Ggame, which helps lead campaigns for Virginia state seats. “It’s got to be a lot more concrete. We’re past the point of being able to earn people’s votes based on the status quo or just hope.”
- Last week, Cox Communications last week sued Rhode Island over the state’s plan to “build taxpayer-subsidized and duplicative high-speed broadband internet in affluent areas of Rhode Island like the Breakers Mansion in Newport and affluent areas of Westerly,” where Taylor Swift owns a $17 million vacation home. Cox says there are better ways to spend taxpayer dollars. According to the Federal Communications Commission, 99.97% of U.S. households already have access to high-speed internet.
References:
https://www.politico.com/news/2024/09/04/biden-broadband-program-swing-state-frustrations-00175845