STL Launches Accellus End-To-End Fiber Broadband And 5G Wireless Solution; India’s PLI scheme explained

India based telecom equipment company STL (Sterlite Technologies Limited) has launched Accellus, its flagship solution for 5G-ready, open and programmable networks. This new product line raises the position of STL as a provider of disruptive solutions for Access and Edge networks. For the past 5 years, STL has been investing in research and development to expand its capabilities in converged networks based on fiber optic broadband and Open RAN.

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India’s PLI Scheme

The Cellular Operators Association of India (COAI), which represents service providers and network equipment vendors, said that the production-linked incentive (PLI) scheme will boost local manufacturing, exports and also create employment opportunities.  STL plans to take advantage of that initiative. Nokia (through its India subsidiary) said the guidelines were an encouraging initiative by the government towards making India a global manufacturing hub. “Nokia is committed to this vision with our Chennai factory that manufactures telecom equipment from 2G to 5G-making for India and the world.”

“India is already the second largest telecom market globally and this will go a long way in making the country a global hub for telecom innovation,” said SP Kochhar, director general, COAI.

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STL’s Accellus is built on this industry-leading converged optical-radio architecture. The company expects the global adoption of this decision to accelerate at a rate of 250% on an annual basis, stimulating better TCO for customers and gross margin for shareholders. Accellus will allow four main benefits for network builders – scalable and flexible operations, faster time to market, lower TCO and greener networks.

Accellus will lead the industry’s transition from tightly integrated, proprietary products to neutral and programmable converged wireless and optical networking solutions. It offers wireless and fiber-based solutions:

1. 5G multiband radios: Exhaustive portfolio of RAN radios with single and multiband macro radios. Co-developed in partnership with Facebook Connectivity to build total availability for Open RAN-based radios

2. Internal small cells: O-RAN compliant, highly efficient internal 5G small cell solution, with level 1 edge treatment

3. Wi-Fi 6 access solutions: Outdoor Wi-Fi 6 solutions providing carrier-class public connectivity in dense environments

4. Intelligent RAN Controller (RIC): An Open RAN 5G operating system that allows the Open RAN ecosystem to use third-party applications to improve performance and save costs

5. Programmable FTTx (pFTTx): A complete solution that offers programmability and software-defined networks in large-scale FTTH, business and cellular sites (FTTx) networks

Commenting on the launch of Accellus, Philip Leidler, Partner and Consulting Director, STL Partners, said: “One of the goals of the O-RAN alliance was to expand the RAN ecosystem and encourage innovation from a wider base of technology companies worldwide. the message is the last indication that this goal has been achieved. “

Commenting on the launch of Accellus, Chris Rice, CEO of Access Solutions at STL, said: “Disaggregated 5G and FTTx networks based on open standards are becoming more common for both greenfield and brownfield deployments. These networks will require unprecedented scalability and flexibility, possible through an open and programmable architecture. STL’s Accellus will unlock business opportunities for our customers and provide a immersive digital experience worldwide.”

Optical fiber has evolved in its maturity and in its form factors to drive the infrastructure medium for the “wireline” side of the network. It continues to be the preferred medium for high-speed network delivery, Rice said.

“What network infrastructure is needed for 5G to become a reality and deliver expected Performance?” 

Answer:  “Upgrade the network backhaul and core IP infrastructure for the expected growth in bandwidth that 5G Applications will enable. The necessity of wireline 5G upgrades sometimes does not get the attention it deserves; this includes IP equipment (e.g. cell site routers) and the necessary fiber upgrades to the cell sites.

Perform the network planning for the new cell site builds required to get the coverage and capacity required for ubiquitous 5G at the speeds users expect. For 5G to pay off for Telcos, there have to be new capabilities and services to sell that deserve higher price points from consumers and business users.

Ensure that operational automation is available to keep operating costs reasonable, especially as the number of cell sites grows. CAPEX is typically only 20 to 25% of the Total Cost of Ownership (TCO) for a RAN, meaning that operating costs are 3X to 4X what CAPEX is. The RAN Intelligent Controller (RIC) is an example in ORAN / Open RAN that helps Telcos fulfil this need in an open way. It is essentially the operating system for Open RAN. It provides a platform for third-party applications to deliver these operational benefits and automation.”

How Is STL Helping Industry Stakeholders to Explain to Government Officials the Importance of Fiber for 5G or High-Speed Broadband?

Answer: “Network speed in the RAN air interface is essentially meaningless without the ability to ensure that the connected IP network can backhaul the required bandwidth. This fact necessitates additional fiber deployments to the existing cell sites (where it does not exist) and to new cells sites.”

In conclusion, Rice opined, “Our (STLs) newest business unit, the Access Solutions BU, focuses on fiber broadband and 5G wireless products. These products are based on open networking principles and give STL the opportunity to participate in the disruption that is occurring in the open networking markets, like ORAN and Open RAN initiatives. While Access Solutions BU is new, it has an R&D and innovation heritage of almost four years. During that time, a top talent team has been put in place, fundamental technology and innovation have been developed and matured, and now a well-defined product roadmap has been put in place as the BU launches many new products in its Accellus product line.”

References:

https://www.prnewswire.com/ae/news-releases/stl-launches-accellus—an-end-to-end-fiber-broadband-and-5g-wireless-solution-301382941.html

https://telecomtalk.info/5g-ecosystem-in-india-to-pli-scheme/468656/

https://economictimes.indiatimes.com/industry/telecom/telecom-news/pli-scheme-for-telecom-gear-to-make-india-a-global-manufacturing-hub-industry/articleshow/83208259.cms

IQ Fiber to launch service in Jacksonville, FL after majority investment from SDC Capital Partners

Start-up network operator IQ Fiber has received a majority investment from SDC Capital Partners, which also owns a 48% stake in Midwest fiber provider Allo Communications.   The transaction provides IQ Fiber with significant equity funding to complete the first phase of its all-fiber network build, passing more than 60,000 homes in the Jacksonville area.

“Consumers deserve a smarter internet choice,” said IQ Fiber CEO Ted Schremp. “High-speed internet has become a necessity and is truly the heartbeat of the modern home. With the launch of IQ Fiber, Jacksonville residents will soon have access to a state-of-the-art, 100% fiber-optic network with gigabit upload and download speeds, simple subscription plans and service experts who live and work in our community.”

“We are thrilled to partner with IQ Fiber in its initial launch in Jacksonville and are excited about the larger opportunity in Northeast Florida and beyond,” said Clinton Karcher, partner at SDC. “IQ Fiber’s commitment to providing exceptional customer service, coupled with state-of-the-art fiber network infrastructure in an underserved market, creates a formula for success.”

IQ Fiber plans to offer simple month-to-month rates with no hidden fees, surcharges or surprise price increases. IQ Fiber’s three service plans will deliver symmetrical internet speeds between 250 and 1,000 Mbps, with whole-home Wi-Fi service always included.

Fiber to the home represents the state-of-the-art for the delivery of broadband services, yet it is accessible to only 36% of the U.S. population. Compounding the consumer challenge, approximately 83 million Americans can only access broadband through a single provider. With today’s announcement, Jacksonville will soon have the freedom to choose a 100% fiber-optic network with simple, no-hassle plans, supported by local experts.

Though its initial plan will see it offer service in Jacksonville starting in early Q2 2022, CEO Ted Schremp said the company is eyeing an opportunity to expand across at least four counties, including Duval (where Jacksonville is located), Clay, Nassau and St. Johns.

“That four county area represents an opportunity for us that is five times bigger than our initial Phase I build,” he said. “So we know we’ve got not just opportunity to get this first 60,000 that we’ve announced, but plenty of additional opportunity as we go forward just inside this little corner of Florida that’s growing as quickly as it is.”

The company is deploying an XGS-PON fiber network and plans to offer three service tiers with symmetrical speeds of 250 Mbps for $65 per month, 500 Mbps for $75 per month and 1 gig for $85 per month. Those prices include taxes as well as whole-home Wi-Fi, Schremp said. While it’s not alone in providing the latter, he pitched it as a differentiator for consumers who just want simplicity and a good customer experience.  The company states on its website:

Our 100% fiber-optic network is built for the modern home. With symmetrical speeds, your entire can stream, game, and work from home all at the same time and it won’t slow you down.

“A gig to the side of your house is useless if you went to Best Buy and bought a router five years ago and are just bumping along, and the average consumer just really doesn’t know how to contend with that,” he said. “The reality is they’re looking at the service provider to solve that for them and certainly that’s good for us in terms of the management of churn and the delivery of the full speeds.”

More than anything, Schremp said IQ Fiber is “trying to be what the incumbents are not.  The incumbents here are Comcast with their traditional HFC [hybrid fiber coax] service, AT&T with some fiber build and a lot of legacy DSL and we know it can be done better,” the CEO said. “We certainly know that consumers react positively to choice. They certainly are irritated by the practices of many of the incumbent providers. And we’re trying to deliver the converse of that.”

References:

https://www.businesswire.com/news/home/20210915005165/en/SDC-Capital-Partners-Closes-Investment-in-IQ-Fiber

https://www.fiercetelecom.com/operators/iq-fiber-prepares-to-take-at-t-comcast-florida

 

Analysts: Combined ADTRAN & ADVA will be a “niche player”

ADTRAN is positioning its acquisition of ADVA as building a complementary combination of assets that can better capitalize on what it sees as an unprecedented investment cycle in fiber. However, analysts argue that the new combined company would still be just a “niche player” in the market.

On Monday, ADTRAN wrote in an email to this author (and many others):

ADTRAN has entered into a business combination agreement with ADVA, a Germany-based global leader in business ethernet, metro WDM, Data Center Interconnect and network synchronization solutions, to combine our two companies.
We believe our combination will create many opportunities to better serve end-to-end fiber networking solutions spanning metro edge, aggregation, access and subscriber connectivity. Additionally, we anticipate that by utilizing our collective world-class R&D teams, we will be better positioned to accelerate innovation and offer differentiated solutions.
Going forward, it will be business as usual and all existing customer, partner and supplier relationships will remain intact. Until we receive all required regulatory approvals and close the transaction, ADVA and ADTRAN will continue to operate as separate companies. As we integrate the two companies, we will be focused on the best ways to offer our enhanced value proposition and partner with you.

Highlights of the Deal:

  • Combination expands product offering and strengthens position as a global fiber networking innovation leader with combined revenue of $1.2B
  • Highly complementary businesses create a global, scaled end-to-end provider to better serve customers with differentiated fiber networking solutions, spanning metro edge, aggregation, access and subscriber connectivity
  • Creates a stronger and more-profitable company, poised to benefit from the unprecedented investment cycle in fiber, an expanded market opportunity and increased scale
  • Meaningful value creation with over $50 million in annual run-rate cost synergies
  • All-stock transaction with ADTRAN shareholders to own approximately 54% and ADVA shareholders to own approximately 46% of the combined company, assuming a tender of 100% of ADVA shares
  • Combined company to be dual-listed on the NASDAQ and Frankfurt Stock Exchange

The two vendors produced a combined $1.2 billion in revenues last year. However, ADTRAN’s presentation in support of the deal showed that market heavyweights Nokia,  Ciena, and smaller player Infinera had much higher revenues over that same time period.

“It’s not going to reshape the optical networking industry,” John Lively, principal analyst at LightCounting, told SDxCentral about the deal. “ADTRAN and ADVA are going to improve their position in combination, [but] don’t really threaten the large players.”

Companies that are potentially threatened by this deal are smaller competitors such as Infinera ($1.4 billion in 2020 revenues) and Calix ($500 million in 2020 revenues), Lively noted.

“The challenges pressured by the global pandemic have clearly shown that fiber connectivity has become an essential foundation for the modern digital economy,” ADTRAN Chairman and CEO Thomas Stanton explained to investors about the deal. “This transformation will significantly increase the scale of the combined businesses, enhancing our ability to serve as a trusted supplier to our customers and worldwide.”

Stanton added that “our combination will make us one of the largest western suppliers for the markets we serve. Our greater size will increase cross-selling opportunities to existing customers, accelerating our combined growth, and allowing us to further penetrate our target markets.”

Although ADTRAN will remain a mid-tier player after the deal closes, LightCounting’s Lively and Dell’Oro Group VP Jimmy Yu both think in general, “it’s a good move.”

Yu noted that industry mergers can destroy value if too many products and workforces overlap. But in this case, ADTRAN and ADVA are from adjacent markets of fixed access and optical layer, and both sides will help each other grow the product line, so “it seems like a complementary combined company that’s going to come out of this,” he added.

Jimmy had this general comment on optical network trends:

Disaggregated DWDM systems outperformed the broader market, demonstrating the growing adoption of this platform type.  Really what we see is that this type of platform architecture, where transponder units are independent of the line systems, is being more widely embraced beyond the Internet content providers. Also, it is no longer just for metro applications. Recently, the highest growth rates have been from long-haul applications,”

Lively noted that there is almost no overlap in the product line, and “for the networks, the two companies logically fit together [as] ADTRAN makes access to equipment and ADVA makes the gear that connects the access equipment to the core.”

“So if you are a smaller service provider, and you want to upgrade to 10 Gb/s internet service for your customers, you could potentially buy everything you need from the new ADTRAN, from the passive optical networking, all the way through to connect to the core,” he said.

Yu also mentioned that the deal will help increase the scale and diversity in products as ADTRAN will be able to offer access and a backhaul solution, especially in tier-two and tier-three markets where most service providers want to work with one solution company instead of multiple vendors.

“2022 should be positive for sales,” argued the analysts at WestPark Capital in a note to investors earlier this month, following the release of Adtran’s second quarter results.

The WestPark Capital analysts pointed out that ADTRAN stands to gain ground in part from government broadband funding, as well as moves by some American and European network operators away from China’s Huawei.

The Raymond James analysts concurred on the Huawei opportunity. “We believe that the Huawei backlash outside of China presents among the largest opportunities,” they wrote on Monday.

The combined company will maintain ADTRAN’s global headquarters in Huntsville, Alabama. It will maintain ADVA’s headquarters in Munich, Germany, as its European base. Currently, ADTRAN has a geographical revenue split of 74% in the Americas, 21% in Europe, the Middle East, and Africa, and 5% in Asia Pacific, while ADVA is split 62% in EMEA, 29% in the Americas, and 9% in Asia Pacific, according to Stanton.

The deal expands ADVA’s presence in North America and ADTRAN’s ability to reach the European market more effectively, Lively said.  One of the drivers for this combination is “we see our customers making significant capital investments to transition their supply chains to trusted vendors with our roots in the U.S. and Germany, our company will be viewed favorably by customers who increasingly specify Western vendors,” Stanton explained.

“It’s kind of a race to build out their digital infrastructure to make the country competitive,” which presents a real opportunity for the new ADTRAN and also its competitors, Lively added.

References:

Zayo to deploy 400G b/s network across North America and Western Europe

Zayo Group Holdings today announced the planned deployment of 31 high capacity, 400G b/s enabled long haul routes across North America and Western Europe.

The availability of 400G b/s client-side wavelength capabilities will enable Zayo to deliver multi-terabit capacity across its underlying global network, enabling higher transmission rates, reduced cost per bit, increased data transfer speeds and significantly greater bandwidth capacity — key features that support enterprises on their digital transformation journeys. Up to 800G transmission will be available in select areas as Zayo deploys significant speed enhancements in anticipation of future network needs.

This optimized wavelength network is designed to provide a direct route for multi-cloud and multi-market connectivity, ideal for content providers, hyper-scalers, carriers and data centers. The upgrade will also enable reduced physical space requirements as well as reduced operation and maintenance costs resulting from a 40% reduction in power consumption.

The race to 400Gb/s has accelerated in recent years, with an increasing number of users, applications and devices driving exponential demand for increased bandwidth. Exceeding the current standard of 100G, Zayo’s new routes will provide a fourfold increase in maximum data transfer speed, supporting 5G technologies including Internet of Things, cloud-based computing, edge computing, virtual reality, high-definition video streaming and artificial intelligence.

“400G is rapidly becoming the prevailing requirement for networks and Zayo is breaking new ground with its 800G capabilities,” said Brian Lillie, Zayo Chief Product and Technology Officer. “This deployment underscores Zayo’s commitment to maintaining the leading edge of communications infrastructure and providing state-of-the art network solutions critical to our customers’ digital transformation journeys.”

CChart courtesy of Avery Anderson of Zayo Group

 

About Zayo Group:

Zayo’s 126,000-mile network in North America and Europe includes extensive metro connectivity to thousands of buildings and data centers. Zayo’s communications infrastructure solutions include dark fiber, private data networks, wavelengths, Ethernet, dedicated internet access and data center connectivity solutions.

Zayo owns and operates a Tier 1 IP backbone and through its CloudLink service, Zayo provides low-latency private connectivity that attaches enterprises to their public cloud environments. Zayo serves wireless and wireline carriers, media, tech, content, finance, healthcare and other large enterprises. For more information, visit https://zayo.com

References:

https://www.businesswire.com/news/home/20210823005123/en/Zayo-Announces-400G-Enabled-Network-Across-North-American-and-Western-European-Footprint

https://zayo.com/products/fiber

AT&T’s fiber buildout reduced due to supply constraints

AT&T has experienced recent disruptions in the supply of fiber optic cable, which has caused the company to trim back its planned fiber-to-the-premises (FTTP) buildout for 2021, according to senior EVP and CFO Pascal Desroches.

AT&T had previously said it would build out its fiber network to an additional 3 million homes passed this year. But that’s now been reduced by 1/2 million.

“Since the start of the third quarter, we are seeing dislocation across the board, including in fiber supply. We’re probably going to come in a little bit light of 3 million homes passed, probably around 2.5 million,” Desroches said Tuesday at the Oppenheimer Technology, Internet & Communications Conference, according to this transcript.

 An AT&T technician working on a fiber project

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Specifically, this is what Pascal said:

But since the start of the third quarter, we are seeing dislocation across the board, including in fiber supply. And as a result of those dislocations, we had previously provided guidance of 3 million homes past this year (unedited- very bad grammar). We’re probably going to come in a little bit in light of that, probably around 2.5 million. We don’t think it’s going to impact us long term. But I think it’s really important context because if we’re feeling the pain of this, I can only imagine what others in the industry are experiencing.

John Stankey (AT&T CEO) has always been a believer in fiber. I think when he took over he identified that as a priority area because he understood from a technology standpoint, there is no better technology for connectivity. And therefore, in a world where the demands for symmetrical speed are increasing significantly, this is the technology to bet heavily on. And so we have a great position, and we are leaning into adding to that position. So it’s really a function of when you — and I think others are now recognizing it as a result of what you’ve seen in the last year in the pandemic, the need to do what we’re doing now, 2-way communication can only happen with symmetrical speed. So I think everyone has had an aha moment, like we need to deploy fiber. And so we’ve long believed that. John has long believed that, and this is just really leading into that opportunity.

As we deploy fiber, our goal is to get at least 40% penetration on homes passed. And we think in certain markets, we’ll have an opportunity to do better than that. And the other thing that is great about is when you lay fiber, you lay fiber to a community where there is both homes and businesses. So it also helps boost returns in your enterprise business. And so that’s why it is so critical that we roll this out because the ability to grow both your enterprise and your consumer business is attractive. And we think these investments will provide us with mid-teen returns over time.

I know we’re largest fiber purchaser in the country. And we have prices that are at the best and most competitive among the industry. So we feel really good about the ability to secure inventory, fiber inventory and at attractive price points and the ability to execute and the build-out at scale, something that many others don’t have.

Oppenheimer moderator question: “Can you talk a little bit about where your supply comes from, I guess, both the fiber and the optical components or any other key suppliers? Is that U.S. sourced? Or is it a lot of it outsourced internationally?”

Pascal’s answer: “It is a U.S. company which has locations both domestically and outside the U.S.”  [We suspect that it’s Corning].

AT&T typically has had no problem getting fiber at a low cost, Desroches said. “We’re the largest fiber purchaser in the country and we have prices that are the best and most competitive in the industry,” he said. “We feel really good about the ability to secure fiber inventory at attractive price points and the ability to execute the buildout at scale, something that many others don’t have.”

AT&T expects to catch up to its original fiber-construction estimates in the years after 2021, largely because of what Desroches called its “preferred place in the supply chain” and “committed pricing.” As AT&T said in a news release yesterday, AT&T is “working closely with the broader fiber ecosystem to address this near-term dislocation” and “is confident it will achieve the company’s target of 30 million customer locations passed by the end of 2025.”

AT&T added another 246,000 fiber broadband subs in Q2 2021, extending its total to 5.43 million, and said last month it was on pace to add about 1 million net fiber subscribers for all of 2021.

AT&T has estimated that nearly 80% of new fiber subscribers are also new AT&T customers, reversing a previous trend that saw a sizable portion of its FTTP customer net adds coming from upgrades of existing AT&T high-speed Internet customers on older VDSL and DSL platforms (which have been largely discontinued).

Speaking on AT&T’s 2Q-2021 earnings call last month, Desroches stated that the company’s consumer wireline business had reached a “major inflection point” as broadband revenues continue to surpass legacy declines. Meanwhile, AT&T’s broadband average revenue per user (ARPU) reached $54.76 in Q2 2021, improving from $51.61 in the year-ago period.

References:

https://investors.att.com/~/media/Files/A/ATT-IR-V2/events-and-presentations/final-oppenheimer-transcript-8-10-21.pdf

https://www.lightreading.com/opticalip/supply-chain-constraints-cut-into-atandts-fiber-buildout-plan/d/d-id/771438?

https://arstechnica.com/information-technology/2021/08/att-delays-500000-fiber-to-the-home-builds-due-to-severe-fiber-shortage/

Will AT&T’s huge fiber build-out win broadband market share from cablecos/MSOs?

Frontier Communications Accelerates Fiber Build Out -10 Million locations passed by 2025

On August 5th, Frontier Communications announced an accelerated fiber optics buildout plan that will result in their fiber-to-the-premises (FTTP) network passing 10 million locations (homes/offices) by 2025.  Frontier says they will end 2021 with 4 million locations passed by fiber and will then add another 6 million in a revised, multi-year “Wave 2” plan.

Nick Jeffery, President and Chief Executive Officer of Frontier, said, “The acceleration of our fiber network expansion is clear evidence that Frontier’s transformation is taking hold. Over the past several months, we’ve made real progress in executing our strategy – by adding world-class leadership, introducing a purpose-driven culture, improving the customer experience, and making our operations more efficient and sustainable.

“Demand for high-speed broadband is growing rapidly, and fiber is the best product to meet the needs of consumers and businesses. Frontier is already doing what customers want and cable can’t – delivering symmetrical download and upload speeds with far lower latency than our competition. Early next year, we will start delivering 2 gigabit per second services, further stretching our performance lead to where only fiber can compete. We have hard work ahead of us, but momentum is increasing as we rally the Frontier team around our mission to Build Gigabit America.”

Jeffery added, “Our second-quarter results reflect continuing momentum in our fiber expansion strategy, with all key fiber metrics in line or above expectations. In particular, we accelerated our fiber build out, continued our customer momentum with another strong quarter of consumer fiber net adds, and reduced our consumer churn. Taken together, it was another strong quarter that positions Frontier well as we head into the second half of the year.”

At its virtual investor day, Frontier provided an update on the fiber buildout and other priorities resulting from its strategic review. These include:

  • Frontier’s current ability to provide a best-in-class offering featuring symmetrical 1 gigabit per second download and upload speeds;
  • Plans to launch a symmetrical 2 gigabit per second offering in the first quarter of 2022 that will unlock next-generation digital experiences for customers;
  • Plans to deploy fiber to reach 10 million locations by 2025; and
  • A new target of $250 million run rate savings by 2023 from simplifying the Company’s operations and improving the customer experience.

Image Credit: Frontier Communications

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Frontier also offered some revised predictions on service penetration, expecting them to be in the mid-teens to 20% at the end of year one, rise to 25% to 30% at the end of year two, and then on up to 45%.  Frontier introduced new pricing for residential fiber broadband service, with entry-level service at 500 Mbit/s.

MoffettNathanson analyst Nick Del Deo (a colleague) wrote in a note to clients:

The single most important data points from today’s analyst day relate to Frontier’s FTTH deployment plans (Exhibit 1). For 2021, the company increased its expectation for new passings from 495K to >600K, which will complete “wave one” of its fiber upgrade project and leave it with ~4M total FTTH passings. Between 2022 and 2025, the company plans to build to another 6M passings, bringing its total to 10M, or about two thirds of its broadband-enabled locations. The remaining 5M, part of wave three, are currently in a holding pattern, with the company working through the optimal approach: do nothing, upgrade, upgrade with government assistance, divest, swap, or do something more creative that we haven’t come up with.

Image Credit: Frontier Communications

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The company also announced it will start to introduce 2-Gig services over FTTP in early 2022, but didn’t disclose pricing.

Del Deo summarized his assessment of Frontier’s fiber buildout (emphasis added):

Frontier plans to build FTTH to 7M incremental homes through 2025, a rapid acceleration from its current pace. This will leave two thirds of its broadband-enabled footprint served by fiber, with the status of the remaining one third TBD. The deployment costs appear somewhat higher, and returns a bit lower, than what we would have expected, but we had haircut the value of its FTTH expansion in our prior work to account for such risks. The faster pace and certainty now reduce the need for such haircuts. The path to financing the build remains open, but the company will need at least a couple of billion dollars in fresh funding. It’s not clear to us that management’s optimism regarding the commercial unit is warranted, but time will tell whether it can engineer a turnaround.

Management has high hopes for the commercial part of its business, and we don’t doubt that growth can get better from where it is today, but we think this will continue to be a segment that weighs on the company’s overall results.

Light Reading’s Jeff Baumgartner opines that “Frontier’s accelerated FTTP buildout plan, revised pricing and plans for 2-Gig service should pressure cable competitors to match up with speeds and pricing. Frontier’s moves might also cause those cable operators to give more consideration to “mid-split” or “high-split” upgrades that dedicate more upstream capacity to their DOCSIS 3.1 networks, accelerate their pursuit of new DOCSIS 4.0 technologies, or shift to full FTTP upgrades in select areas.”

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References:

https://www.businesswire.com/news/home/20210805005317/en/Frontier-Communications-Accelerates-Fiber-Build-Out-to-Reach-10-Million-Locations-By-End-of-2025

PowerPoint Presentation (q4cdn.com)

https://www.lightreading.com/opticalip/fttx/frontiers-fiber-frenzy-10m-fttp-locations-by-end-of-2025/d/d-id/771336?

Fujitsu and HFR unveil Smart xHaul optical transport for 5G traffic

Fujitsu Network Communications, Inc. and HFR Networks, Inc. today introduced new and enhanced Smart xHaul solutions for versatile, cost-efficient, scalable optical network transport for 5G traffic.
Enhancements include new innovative optics for the M6424 time sensitive networking (TSN) aggregation and transport switch —which is in use with a Tier 1 U.S. service provider as the lead customer — and the new M6208E TSN switch for hardened environments.
Smart xHaul Solutions from Fujitsu
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As service providers ramp up 5G mobile and fixed wireless service, they’ve begun to merge radio access network (RAN) traffic across legacy 4G frequencies and newly acquired C-band spectrum.  Cloud RAN (C-RAN) transport requires high performance and optimized economics to scale capacity efficiently per macro cell site.
The enhanced M6424 delivers up to 400G transport capacity with the new xWave 400G optical solution for high-capacity TSN with precision time protocol (PTP) over a single fiber. This significant increase in transport efficiency results in an 8 to 1 fiber savings, with a pay-as-you-grow solution provisioned in 100G increments.
Moreover, the M6424 switch includes integration of 10Gbps/25Gbps Smart Tunable Optics, offering a powerful “semi-active” transport solution when cell site power and space challenges exist. The M6424 utilizes its management software to access the smart self-tuning optics for automated turn-up and remote visibility at passive cell sites, allowing proactive Operations, Administration and Management (OA&M) capabilities, resulting in high availability services support. In this way, optics can be disaggregated from the transport system and plugged directly into radios at space constrained or zoning-restricted locations such as lamp posts, utility poles or building facades, solving challenges related to power, aesthetics and space.
The new M6208E switch is a scalable, high-capacity TSN switch in a compact, hardened enclosure for outside plant wall or pole mounting, built for rapid site deployment in challenging conditions ranging from rural cell sites to constrained environments, such as subways or venues. The versatile M6208E reduces fiber needs by enabling service blending across legacy 3G or 4G LTE common public radio interface (CPRI) infrastructure at remote radio heads with 5G enhanced CPRI traffic and Ethernet services on a common RAN.
As an HFR Networks’ partner, Fujitsu offers the M6424, xWave 400G and M6208E switching solutions as part of its Smart xHaul transport portfolio, along with network integration and management services.
Here’s a network system block diagram that illustrates three different deployment configurations: Active, Semi-Active and Passive:
Source: Fujitsu 
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Quotes:
“As service providers face the complexities of building out ubiquitous 5G coverage, they need operational flexibility with greater efficiency and performance. Leveraging TSN and innovative optics optimized for xHaul enables significant cost savings, business agility and faster time to market,” said Paul Havala, vice president of technology business unit, Fujitsu Network Communications, Inc. “The combination of Fujitsu’s integration services and HFR Networks’ standards-compliant technology empowers versatile Smart xHaul solutions with centralized management across multiple RAN types to support a wide variety of 5G transport use cases.”
“HFR Networks continues to listen to customers as we expand our flexiHaul solutions portfolio,” said Paul Crann, chief executive officer, HFR Networks. “These enhanced switching solutions help operators to accelerate 5G coverage to more locations, including sites that require rugged, passive or compact solutions with the ability to converge multiple services onto common infrastructure.”
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References:

Digital Realty & Zayo plan next gen fiber interconnection and security capabilities

Digital Realty, the largest global provider of carrier- and cloud-neutral data center, colocation and interconnection solutions, announced today a significant step in its plan to create next-generation interconnection and security capabilities and build the largest open fabric-of-fabrics interconnecting key centers of data exchange.

As part of this development strategy, Digital Realty is working with Zayo Group Holdings, Inc., a leading global provider of fiber-based communications solutions, to lay the physical and virtual foundations of a new open fabric.

This collaboration represents a significant milestone on the cross-industry roadmap outlined earlier this year in Digital Realty’s industry manifesto for open interconnection and next-generation colocation solutions.  The collaborative approach aims to unlock trapped value and remove legacy barriers to digital transformation by more closely aligning with the hybrid IT and security considerations of multinational enterprises. 

“As businesses continue to shift globally towards hybrid IT to enable new digital workplace models, create new lines of business, and control costs, Zayo and Digital Realty are in an excellent position to enable customers’ growth through a shared interest in globally secure, software-defined interconnection,” said Brian Lillie, Chief Product and Technology Officer at Zayo.  “We look forward to working together to power next-generation interconnection and security capabilities that will unlock the true potential of digital transformation.”

This initiative builds upon new and existing innovative capabilities, including PlatformDIGITAL®, Digital Realty’s first of its kind global data center platform, which already brings together over 4,000 participants in connected data communities around the world, as well as Zayo’s extensive global fiber network.  The new collaboration also follows Digital Realty’s recent announcement of its plan to build native SDN-enabled multi-platform orchestration and global fabric connectivity across its global platform.

“We’re excited to advance our roadmap for removing the legacy interconnection barriers that continue to impede enterprise digital transformation initiatives,” said Digital Realty Chief Technology Officer Chris Sharp.  “Our platform capabilities and the steps we are taking in collaboration with Zayo will serve as a force-multiplier in building the industry’s largest open fabric-of-fabrics to effectively address the growing intensity of enterprise data creation and its gravitational impact on IT architectures.”

Digital Realty’s Data Gravity Index DGx™ projects that Forbes global 2000 enterprises will be adding storage at a combined rate of more than 620 terabytes per second for data aggregation and exchange across 53 metros by 2024.  This rapid growth reflects a growing trend among global customers towards deploying and connecting large, private data infrastructure footprints across multiple global locations.

Gartner® predicts that by 2023, over 50%1 of the primary responsibility of data and analytics leaders will comprise data created, managed, and analyzed in edge environments.  As a result, a new pervasive data center infrastructure is needed to enable digitized endpoints and mobile users to fully participate in globally distributed workflows.  By removing legacy barriers across the interconnection industry, the consortium approach seeks to enable connected data communities and to support transformative outcomes for customers across all industries.

References:

https://investor.digitalrealty.com/news-and-events/news/press-release-details/2021/Digital-Realty-Outlines-Next-Generation-Interconnection-Initiative-to-Lay-Foundation-for-Industrys-Largest-Open-Fabric-of-Fabrics/default.aspx

Media & Industry Analyst Relations:

Marc Musgrove, Digital Realty, +1 (415) 508-2812
[email protected]

Lightpath to deploy 800Gb/sec links using Ciena’s WaveLogic 5 Extreme technology

Fiber-optic network services provider Lightpath has rolled out 800-Gbps capabilities via implementation of Ciena’s WaveLogic 5 Extreme technology. The company also will deploy Ciena’s Waveserver Ai platform, which will pair with a flexible-grid optical transport network based on Ciena’s 6500 RLS platforms.

The Lightpath Network consists of over 18,000 route miles of fiber providing connectivity to over 12,000 service locations.  Lightpath provides a variety of connectivity and business services to customers in the metro New York area, including financial services firms (e.g. “Lightpath intros 100-Gbps optical transport service” and “Lightpath raises New York metro fiber-optic network footprint”).  Using Ciena’s coherent optical solution, Lightpath’s network becomes more adaptive, allowing it to respond quickly to ever-changing bandwidth demands while maximizing operational efficiencies, providing customers with more reliable, high-speed services.

The enhanced optical transport technology will increase fiber network flexibility and efficiency as well as support Physical Layer encryption for data security. Cable MSO Altice USA owns a controlling interest in the company (see “Altice USA to sell almost 50% of Lightpath fiber enterprise business to Morgan Stanley Infrastructure Partners”).

“In order for our customers to execute on their own digital innovations, we need to provide them with fast and reliable connectivity. With Ciena’s solutions, our customers in the New York and Boston metro areas will now experience next-level digital services with high bandwidth and minimal latency,” commented Phil Olivero, CTO at Lightpath.

“As users consume more digital content, it is crucial for service providers to ensure their network can adapt to these surging and often unpredictable demands. With Ciena’s technology, Lightpath is adding scalability to meet bandwidth demands and also gaining real-time visibility into the performance of its network,” added Kevin Sheehan, CTO, Americas, for Ciena.

WaveLogic 5 Extreme is now available in three different product implementations to meet network architecture preferences: 6500 Packet-Optical PlatformWaveserver 5 compact interconnect platform, and the WaveLogic 5 Extreme 800G transceiver module

The WaveLogic 5 Extreme chip is 12mm x 16mm CMOS device. Here are some of its remarkable features:

  • It is the industry’s first commercial 7nm CMOS device for optical networks.
  • Based on 7nm FinFET technology, it includes 3km of wiring and contains 800 Trillion operations per second, which is about as much horsepower as 400,000 laptops!
  • Some of the capabilities that are packed into the ASIC include nonlinear probabilistic constellation shaping, throughput-optimized forward error correction, frequency division multiplexing, and encryption.

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About Ciena
Ciena is a networking systems, services and software company. We provide solutions that help our customers create the Adaptive Network™ n response to the constantly changing demands of their end-users. By delivering best-in-class networking technology through high-touch consultative relationships, we build the world’s most agile networks with automation, openness and scale. For updates on Ciena, follow us on Twitter @CienaLinkedIn, the Ciena Insights blog, or visit www.ciena.com.

About Lightpath
Lightpath is revolutionizing how customers connect to their digital destinations by combining our next-generation network with our next-generation customer service. Lightpath’s advanced fiber-optic network offers a comprehensive portfolio of custom-engineered connectivity solutions with unparalleled performance, reliability, and security. Our consultative customer service means we work with you to design, deliver, and support the solution for your unique needs, faster and more easily than ever before. For over 30 years, thousands of enterprises, governments, and educators have trusted Lightpath to power their organization’s innovation. Altice USA (NYSE: ATUS) owns a 50.01% controlling interest in Lightpath and Morgan Stanley Infrastructure Partners (MSIP) owns 49.99% of the Company.

www.lightpathfiber.com

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References:

https://www.ciena.com/about/newsroom/press-releases/lightpath-upgrades-to-next-generation-network-using-cienas-wavelogic-5-extreme-800g-technology.html

https://www.lightwaveonline.com/network-design/high-speed-networks/article/14206591/lightpath-moves-to-800g-services-with-ciena

https://www.ciena.com/insights/articles/800G-is-here-pushing-the-boundaries-of-what-your-network-can-do.html

 

Facebook and Liquid Intelligent Technologies to build huge fiber network in Africa

Facebook Inc. and Africa’s largest fiber optics company, Liquid Intelligent Technologies, are extending their reach on the continent by laying 2,000 kilometers (1,243 miles) of fiber in the Democratic Republic of Congo.  The two companies intend to build an extensive long haul and metro fiber network.  Apparently, this is part of Facebook’s effort to “connect the unconnected,” especially in 3rd world countries.

The move will make Facebook one of the biggest investors in fiber networks in the region. The cable will eventually extend the reach of 2Africa, a major sub-sea line that’s also been co-developed by Facebook, the two companies said in a July 5th statement.

Facebook will invest in the fiber build and support network planning. Liquid Technologies will own, build and operate the fiber network, and provide wholesale services to mobile network operators and internet service providers. The network will help create a digital corridor from the Atlantic Ocean through the Congo Rainforest, the second largest rainforest after the Amazon, to East Africa, and onto the Indian Ocean. Liquid Technologies has been working on the digital corridor for more than two years, which now reaches Central DRC. This corridor will connect DRC to its neighboring countries including Angola, Congo Brazzaville, Rwanda, Tanzania, Uganda, and Zambia.

The new build will stretch from Central DRC to the Eastern border with Rwanda and extend the reach of 2Africa, a major undersea cable that will land along both the East and West African coasts, and better connect Africa to the Middle East and Europe. Additionally, Liquid will employ more than 5,000 people from local communities to build the fiber network.

“This is one of the most difficult fiber builds ever undertaken, crossing more than 2,000 kilometers of some of the most challenging terrain in the world” said Nic Rudnick, Group CEO of Liquid Intelligent Technologies. “Liquid Technologies and Facebook have a common mission to provide affordable infrastructure to bridge connectivity gaps, and we believe our work together will have a tremendous impact on internet accessibility across the region.”

Liquid Intelligent Technologies is present in more than 20 countries in Africa, with a vision of a digitally connected future that leaves no African behind.

“This fiber build with Liquid Technologies is one of the most exciting projects we have worked on,” said Ibrahima Ba, Director of Network Investments, Emerging Markets at Facebook. “We know that deploying fibre in this region is not easy, but it is a crucial part of extending broadband access to under-connected areas. We look forward to seeing how our fibre build will help increase the availability and improve the affordability of high-quality internet in DRC.”

Facebook has been striving to improve connectivity in Africa to take advantage of a young population and the increasing availability and affordability of smartphones. The social-media giant switched to a predominantly fiber strategy following the failed launch of a satellite to beam signal around the continent in 2016.

About Liquid Intelligent Technologies:
Liquid Intelligent Technologies is a pan-African technology group present in more than 20 countries, mainly in Sub-Saharan Africa. Liquid has firmly established itself as the leading provider of pan-African digital infrastructure with an extensive network covering over 100,000 km. Liquid Intelligent Technologies is redefining network, cloud, and cybersecurity offerings through strategic partnerships with leading global players, innovative business applications, smart cloud services and world-class security on the African continent. Liquid Intelligent Technologies is now a comprehensive, one-stop technology group that provides customized digital solutions to public and private sector companies across the continent under several business units including Liquid Networks, Liquid Cloud and CyberSecurity and Africa Data Centers. For more information contact: Angela Chandy  [email protected]

References:

https://www.africa-newsroom.com/press/liquid-intelligent-technologies-and-facebook-partner-to-build-a-fibre-network-in-the-democratic-republic-of-congo?lang=en

https://www.bloomberg.com/news/articles/2021-07-05/facebook-partners-with-liquid-to-extend-africa-fiber-network

https://cd.Liquid.Tech/

 

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