Telegeography: Legacy MPLS networking declines; Direct Internet Access surges

TeleGeography, a global telecommunications market research and consulting firm, has released its 2021 WAN Manager Survey, revealing that Direct Internet Access (DIA) is gaining ground on MPLS, with 42% of average sites running the product in 2021.

At the same time, survey responses show a clear downtrend in MPLS use, from a dominant high of 82% of sites running the product in 2018 down to 46% in 2021.  It marks the first time this figure has dropped below half of average sites. This shift to DIA reflects the plans of many WAN managers to reduce their reliance on MPLS in their networks.

Key Findings:

• For the first time, MPLS usage dipped below half of average sites—46% of sites were running MPLS in 2021.

• DIA is hot on the heels of MPLS, with 42% of average sites running the product in 2021.

• MPLS usage at average WAN sites has declined by 5% compounded annually over four years, while DIA and broadband usage has climbed by 3% and 1.5% each year across the same time period.

• WAN managers want more bandwidth. Across MPLS, DIA, and broadband, the percentage of large port sizes being procured is growing, while port sizes 50 Mbps and under are declining 1-3% compounded annually.

• The most common strategy for backing up MPLS is using an alternative connectivity service like DIA or broadband.

• Zero Trust Security adoption is on the rise, growing from just 8% of respondents in 2019 to 35% in 2021, and the knowledge gap is narrowing.

• Multi-factor authentication (MFA) and single sign on (SSO) are the top ZTS features implemented.

• Increased remote work is the top factor driving companies towards ZTS solutions.

• Top network infrastructure security vendors in hardware–Palo Alto, Cisco, and Fortinet–also lead in the software-based security vertical.

TeleGeography’s WAN Manager Survey features analysis based on the experiences of WAN managers from 185 companies with a median revenue of $10 billion USD. The 2021 focuses on IT managers whose day-to-day role covers designing, sourcing, and managing U.S. national, regional, and global corporate wide area computer networks. It also includes 60 new responses across various industries.

TeleGeography’s report highlights how the extension of COVID-related remote work has accelerated many ongoing WAN trends like migration to the cloud, SD-WAN adoption, and incorporation of alternative access technologies into the underlay. To that effect, the team found that DIA and business broadband usage have been on the rise, with DIA experiencing a four-year CAGR increase of 3% and broadband logging an increase of 1.5%.

“Through our survey, we can see that enterprise companies are embracing hybrid networks more and more. MPLS usage in our respondents’ WAN has been declining steadily, and in 2021 we saw a near-equal ratio of MPLS and DIA in the average network. Given these rates, we’ll have an eye on DIA usage to perhaps overtake MPLS in future surveys,” said Elizabeth Thorne, Senior Analyst at TeleGeography.

TeleGeography’s new survey also reveals WAN managers’ views on zero trust security (ZTS) and secure access service edge (SASE) adoption. ZTS adoption is on the rise, growing from just 8% of respondents in 2019 to 35% in 2021, a significant increase in just two years.

Telegeography asked WAN managers how far along they were in implementing ZTS (Zero Trust Security) or SASE (Secure Access Service Edge) security policies on their network.  Here are the results:

• Implementation of one or more elements of ZTS/SASE on at least some of the respondent’s network jumped from just 8% in 2019 to 35% in 2021, a significant increase in just two years.

• There’s been a narrowing of the knowledge gap. Just 8% of respondents were unfamiliar with ZTS in 2021, compared to one in five in 2019.

• Overall we saw a shift down the deployment pipeline, with reductions in the percentage of respondents who either had not started, or were just beginning their implementation journey.

• In 2021 we introduced the option “Waiting on SD-WAN,” as in past interviews many respondents indicated that their adoption of zero trust policies was incumbent on their SD-WAN deployment. That is reflected in the results, as it was the second most common–28%–stage respondents were in.

Other findings:

  • Fixed Wireless Access (FWA) represents a small percent of average WAN sites, often used as backups or temporary connectivity.
  • Satellite had the lowest reported average usage, and has maintained its reputation as an expensive connectivity option of last resort.

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End Quote:

“Enterprise networking is evolving, in part due to an increase in remote working. Network managers are facing the challenge of accommodating a remote-friendly, work-from-anywhere environment and many will likely be moving toward internet-first networks and further away from MPLS in the coming years,” said Greg Bryan, Senior Manager at TeleGeography.

References:

https://www.totaltele.com/512391/Legacy-MPLS-Networking-Declines-While-Direct-Internet-Access-Booms-According-to-TeleGeographys-WAN-Manager-Survey

https://www2.telegeography.com/download-the-wan-manager-survey-executive-summary

 

Lumen Technologies Fiber Build Out Plans Questioned by Analysts

Lumen Technologies is one of a large and growing number of telecom companies counting on a broad expansion of its fiber network. The Fiber Broadband Association (FBA) recently reported that the fiber industry is entering its “largest investment cycle ever” thanks to the efforts of companies like AT&T, Verizon and Lumen.

Lumen hopes to build its fiber network to 12 million new locations over the coming years. But it won’t be easy, according to Lumen CEO Jeff Storey.

“Supply chains are stressed, and we continue working very closely with our diverse and valued suppliers to mitigate risk as we execute on our growth objectives,” Storey said this week during his company’s quarterly conference call, according to a Seeking Alpha transcript. Others have issued similar warnings.

“I don’t want to overstate the issue, but it’s something that we are really paying attention to and working with vendors. We are starting to see some companies hold off on taking new orders. And as we see that, then we are working to put in our mitigation plans to make sure it’s factored into our build plan. But it is an issue that I will highlight as a real one that we have to mitigate.”

Lumen Technologies reported fourth-quarter results and 2022 expectations that generally fell below the forecasts of some financial analysts.

“Lumen’s 2022 guidance will fuel concerns that the company will have no choice but to eventually let leverage rise to inappropriate levels, dial back on investment, cut the dividend, or choose some combination thereof,” wrote the financial analysts at MoffettNathanson. “In particular, 2022 EBITDA [earnings before interest, taxes, depreciation, and amortization] guidance was noticeably below expectations at a time when capex will be elevated.”

“Results at this stage don’t give investors confidence in the company’s ability to earn an adequate return,” wrote the financial analysts at New Street Research.

Lumen and other fiber providers like Frontier Communications and AT&T are moving forward with their fiber buildout plans. Some, like AT&T and Frontier, are reporting big gains in the number of their new fiber customers. But others, like Lumen, are not.

“The past few quarters have been relatively weak for broadband net additions for Lumen, even for its higher-speed fiber offering,” MoffettNathanson said of Lumen’s consumer broadband business. “This quarter’s broadband net adds were at the low end of what the company has reported over the past few years and were shy of consensus estimates.”

The financial analysts at Evercore wrote that Lumen’s business segment drives three-quarters of the company’s revenue, and that too remains stressed. “The jury remains very much out on the company’s prospects in this sector,” they wrote, noting that sales in the company’s business segment declined slightly in the fourth quarter when compared with the third quarter of last year.

New Street analysts say a key metric for Lumen will be the percentage of customers in a given area who opt to purchase its new fiber optic access. If Lumen gets 40% of potential customers to sign up, the company likely will generate profits. “At 30%, the company would likely destroy value,” they warned.

Lumen CEO Storey stated that the company has already managed to get an average of around 29% of customers in its new fiber markets to sign up for its service. And that, he said, is with relatively little marketing.

He expects that number to be above 40% in the months and years to come. “If you look at the quality of the product that we have, we have a very effective competitive product and even with the limited marketing, we are doubling our penetration rates in our traditional copper areas,” Storey said.

New findings from the financial analysts at Cowen are supportive of Lumen’s fiber optic build out plans.  The Cowen analysts recently conducted a nationwide survey of more than 1,000 respondents and found that fiber-to-the-home (FTTH) “take rates” reached 56% among those surveyed.

“Take rate, or more specifically, market penetration, is a key driver of the FTTH business case,” they wrote. “We have previously noted that a penetration rate of 30-35% is the typical minimum break-even threshold when underwriting FTTH projects. When there is one broadband competitor, fiber penetration can approach high-50s and even 60% penetration levels in mature markets.”

Lumen CMO Shaun Andrews said: “One of the things that really differentiates us right now is our focus on fiber as part of the core infrastructure to an edge experience versus a distraction with 5G or content.  And being able to look an enterprise in the eye and say ‘Not only do we have these capabilities, but we will build the fiber to you where you are.’ That resonates with customers, and I think that’s a differentiator.”

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Last month, Lumen reported that they secured a massive $1.2 billion contract with the U.S. Department of Agriculture (USDA), setting it up to give one of the biggest government agency networks a major makeover.

Under the contract, Lumen will “completely transform” the USDA’s network covering 9,500 locations across the country. It will provide a range of services, including SD-WAN, managed trusted internet protocol, zero-trust networking, edge computing, remote access, virtual private networking, cloud connectivity, unified communications and collaboration, contact center, voice-over-internet protocol, ethernet transport, optical wavelength, and equipment and engineering.

References:

https://www.lightreading.com/opticalip/analysts-fret-over-lumens-fiber-plans/d/d-id/775229?

https://www.fiercetelecom.com/telecom/lumen-reels-12b-contract-overhaul-usdas-legacy-network

https://www.fiercetelecom.com/telecom/lumen-cmo-we-think-differently-about-fiber-than-our-competitors

Lumen’s big fiber roll-out push from 2.5M to 12M locations passed in the next few years

Lumen Technologies to empower customers to set up the wavelength subnetworks

CenturyLink rebrands as LUMEN for large enterprise customers; adds Quantum Fiber

ZTE using TSMC’s 7-nm process to build custom chips for its 5G base stations

ZTE is on a roll! China’s #2 telecom firm said in its annual report that it gained market share in China last year for servers, core networks and storage solutions — the three areas where Huawei is a key player.   Revenues grew at a double-digit percentage rate last year, rising inside and outside China and across all three business units – carrier (networks), enterprise (business) and consumer (gadgets).

With TSMC’s business booming, Nikkei Asia believes that ZTE is quietly building a technological edge in the base station market for fifth-generation (5G) cellular connectivity. These base stations are used by telecommunications carriers to meet consumer demands, and the publication believes that ZTE has designed its equipment to be based on the 7-nanometer (nm) process node.

The company [ZTE] has been utilizing some of TSMC’s most advanced chip production technology — the so-called 7-nm tech — to build processors for its 5G base stations. Sources said it also uses the Taiwanese chipmaker’s advanced chip packaging technology, which uses stacking technology to arrange chips with different functions into one package.

Nikkei Asia also said that Huawei’s inability to conduct business with TSMC due to American sanctions has left the field wide open for ZTE. The company is targeting double-digit growth for its server and base station segment, and it is also interested in TSMC’s leading-edge chip node, which is the company’s 5nm process.

However, while ZTE might not be sanctioned to procure the latest chip technologies from TSMC, the company still can not sell its 5G base stations to several Western companies. This has resulted in it focusing its efforts mostly on China, as the U.S. will rely on small cell 5G Open RAN platform developed by Qualcomm Incorporated on the 4nm node.

Source: Jordi Boixareu/Alamy Live News

“ZTE has turned quite aggressive in pursuing its chip capability in the past few years. Although the volume is still small, it is showing impressive progress,” said one unnamed source.

TSMC, as well as ZTE, seems to be on a very solid growth track. On the back of another robust set of quarterly financials Q4 FY21 and a strong balance sheet, the world’s #1 chip making firm announced a massive capex budget hike to increase manufacturing capacity in “advanced process technologies,” including 2nm, 3nm, 5nm and 7nm.

TSMC also sells products built on the 4nm, which is a design extension of the company’s 5nm process families. Different process technologies marketed under the 4nm branding are expected to commence production from the second half of this year to the first half of 2023.

References:

https://asia.nikkei.com/Business/China-tech/China-s-ZTE-boosts-chip-capabilities-amid-Huawei-s-crackdown-woes

https://wccftech.com/tsmc-reveals-36-revenue-growth-as-chinas-zte-reportedly-using-7nm-for-5g/

https://www.lightreading.com/asia/zte-has-designs-on-chips-with-tsmc/d/d-id/775180?

NTT: Biggest challenges to effectively integrate private 5G into existing infrastructure and applications?

by Shahid Ahmed of NTT

Introduction:

For most countries, the public 5G networks are expected to enable users to experience a whole new level of connectivity. Enterprises are wanting to make the most of the network as well. While the public 5G networks do offer enterprise solutions and services, a private 5G network might just be the better option for them.

5G in Asia

Why should enterprises consider a private 5G network?

Shahid Ahmed, Group EVP, New Ventures and Innovation at NTT Ltd.

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As enterprises continue supporting wider digitization, the demands on secure and reliable connectivity solutions are increasing. NTT recently partnered with the Economist Impact and interviewed over 200 CIOs globally, and our findings show they expect to benefit from the improved data control, privacy, and security as the most anticipated outcomes of implementing private 5G networks followed closely by improving workforce productivity through automation.

Advanced connectivity is an essential element for industrial automation applications in manufacturing facilities, Automotive, Hospitals, and Warehousing Facilities. Hence, private 5G networks provide a single network for mission-critical operational technology (OT) using micro-slicing to support manufacturing workflow automation, autonomous guided robots, and machine vision AI applications.

For most industrial applications, the cost of ownership for private 5G wireless is better than alternative technologies operating in an unlicensed spectrum. The TCO of private 5G wireless networks is lower (when compared to WiFi) because these networks provide wider (especially outdoor) coverage requiring far fewer access points which means less overall infrastructure to install and manage.

What are the biggest challenges when it comes to effectively integrating private 5G into existing infrastructure and applications?

Through NTT’s recently conducted CIO survey alongside secondary research, our findings revealed that the most common (44%) barrier to deploying private 5G networks is integrating the technology with legacy systems and networks. The complexity surrounding the deployment and management of private 5G networks was also cited as another significant barrier by 37% of respondents given that 5G technology is still in the early stages of its adoption lifecycle. Employees lacking the technical skills and expertise to manage 5G networks was the third most common barrier facing 30% of firms.

In view of these challenges, organizations could consider outsourcing their private 5G deployment to a managed service provider who will have the expertise when it comes to implementing private 5G networks. This is likely to be the most common approach to private 5G adoption, preferred by 38% of survey respondents. Buying a private 5G network ‘as-a-service’ can accelerate the adoption process and offer a better end-user experience and return on investment for companies.

Additionally, it is important to integrate the private 5G network into business operational workflows. For example, in cases such as safety and maintenance, these business processes and employee and machine workflows must be directly integrated into the network.

Source – NTT

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How is NTT helping enterprises with their private 5G adoption? Are there any use case examples to share?

We have a range of commercial out of the box use cases and device solutions available; for example, autonomous guided robots, machine vision worker safety PPE detection, machine vision AI smart factory and smart building solutions, group communication Push to Talk (PTT), AR/VR connected workforce, and automate manufacturing workflow solutions. These are just some examples of use cases NTT has curated internally or together with our partners.

NTT’s private 5G (P5G) fully managed Network as a Service (NaaS) solution is ideally suited for enterprises in need of better security, data management, and privacy supporting their wider enterprise digitization initiatives. NTT further provides system design and integration services to integrate the network existing systems and application and network management upon completion of the network. The solution is pre-integrated with leading network suppliers, offering clients the flexibility to seamlessly work with any industry-certified applications.

When it comes to cybersecurity, will private 5G enable enterprises to have better visibility and control over their network?

Security is the main draw for enterprises when it comes to private 5G adoption. This was also one of the key findings from the Economist Impact survey with 83% of executives citing it as the number one reason why they wanted to build a private 5G network.

Private 5G enabled networks are built around Zero Trust (ZTNA) principles leveraging SIM-based (multi-factor) authentication and authorization, enhanced end-user data encryption, enhanced authentication, and data encryption between network sub-components and network slicing.

Together, these enhancements provide end-to-end security and strict access control, through device authentication and protecting sensitive data with network isolation. It enables true granular micro[1]slicing capabilities where traffic within the facilities and warehouses can be segmented according to enterprise IT/OT SLA needs.

Lastly, the 5G network has been making headlines in the US over concerns it can affect aircraft radar. Should businesses be concerned if a private 5G network might affect other machinery in their plants?

With regards to concerns relating to 5G networks affecting aircraft radar, discussion among wireless carriers as well as the airline industry and regulators are still ongoing, and it is too early to speculate on the way forward.

Private 5G networks in the US are different than Public 5G. Additionally, most private networks in the US will leverage the CBRS band which is an FCC-approved and shared band, much further removed from the frequencies used for aviation altimeters systems while operating at much lower power than public 5G networks.

Similarly, the risks of deploying private 5G to an organization’s machinery is unlikely – and because the networks are custom, the individual network can be configured properly so there is ZERO RISK. Companies may benefit from leveraging a managed service provider who will be able to manage the infrastructure, implementation process, and any ongoing operational risks.

References:

https://techwireasia.com/2022/02/enabling-more-enterprise-use-cases-with-private-5g-networks/

América Móvil: 5G deployment 1H-2022; pay-TV service in Mexico under discussion by IFT

América Móvil will begin this year the deployment of its 5G network in Mexico and all the countries in the Latin American region where it operates, with the exception of Colombia, said Daniel Hajj, CEO of the company.

The company, owned by magnate Carlos Slim, will invest around eight billion dollars this year, said the executive in a conference call with analysts.  América Móvil expects to have 5G connectivity ready in 90 percent of its markets.

Hajj pointed out that although there is no specific date for the launch of the 5G network, he expects it to take place during the first half of this year.  “I don’t have a specific date, but all over the year we’re working on a launch. I hope we can do it in the first semester of this year,” said Hajj said about 5G on a call with investors.

America Movil operates in at least 10 markets, mainly in Latin America.

The company on Tuesday reported that its fourth-quarter net profit more than tripled from the year-ago period, boosted by its sale of its TracFone wireless unit to Verizon Communications Inc. It posted a net profit of 135.6 billion pesos ($6.6 billion), compared with 37.3 billion pesos a year earlier.

The CEO also referred to the company’s plans to offer pay-TV service in Mexico, a request that is under discussion at Mexico’s telecom regulator- the Federal Telecommunications Institute (IFT).

At the end of January, the Plenary of the IFT reversed a project that denied the concession of a pay TV channel to Claro TV, a subsidiary of América Móvil, which postponed the decision on the request made by Carlos Slim‘s company more than three years ago.

However, Hajj said that they expect to have positive news on the matter and assured that the request before the regulator complies with all the regulations in force, in addition to the fact that it would benefit consumers.

“It is clear that competition would be good for consumers and the sector, and we believe that Claro and América Móvil is a clear alternative, so that will have to be determined by the IFT, and we expect positive news on that front,” a company executive said.

 

References:

https://www.reuters.com/technology/america-movil-says-major-5g-launch-track-optimistic-about-pay-tv-mexico-2022-02-09/

 

Gartner: Accelerated Move to Public Cloud to Overtake Traditional IT Spending in 2025

Enterprise IT spending on public cloud computing, within addressable market segments, will overtake spending on traditional IT in 2025, according to Gartner, Inc.

Gartner’s ‘cloud shift’ research includes only those enterprise IT categories that can transition to cloud, within the application software, infrastructure software, business process services and system infrastructure markets. By 2025, 51% of IT spending in these four categories will have shifted from traditional solutions to the public cloud, compared to 41% in 2022. Almost two-thirds (65.9%) of spending on application software will be directed toward cloud technologies in 2025, up from 57.7% in 2022.

“The shift to the cloud has only accelerated over the past two years due to COVID-19, as organizations responded to a new business and social dynamic,” said Michael Warrilow, research vice president at Gartner. “Technology and service providers that fail to adapt to the pace of cloud shift face increasing risk of becoming obsolete or, at best, being relegated to low-growth markets.”

In 2022, traditional offerings will constitute 58.7% of the addressable revenue (see Figure 1), but growth in traditional markets will be much lower than cloud. Demand for integration capabilities, agile work processes and composable architecture will drive continued shift to the cloud, as long-term digital transformation and modernization initiatives are brought forward to 2022. Technology product managers should use the cloud shift as measure of market opportunity.

In 2022, more than $1.3 trillion in enterprise IT spending is at stake from the shift to cloud, growing to almost $1.8 trillion in 2025, according to Gartner. Ongoing disruption to IT markets by cloud will be amplified by the introduction of new technologies, including distributed cloud. Many will further blur the lines between traditional and cloud offerings.

Enterprise adoption of distributed cloud has the potential to further accelerate cloud shift because it brings public cloud services into domains that have primarily been non-cloud, expanding the addressable market. Organizations are evaluating it because of its ability to meet location-specific requirements, such as data sovereignty, low-latency and network bandwidth.

To capitalize on the shift to cloud, Gartner recommends technology and services providers target segments where the shift is occurring most aggressively, in addition to seeking new high-growth cloud opportunities. For example, infrastructure-related segments have a lower level of cloud penetration and are expected to grow faster than segments such as enterprise applications that are already highly penetrated. Providers should also target specific personas, adoption profiles and use cases with go-to-market initiatives.

*Note to editors: Gartner’s research on cloud shift provides a high-level view of the market impact of cloud computing by measuring the ratio of enterprise IT spending on public cloud services compared with traditional (non-cloud) for a given set of market segments. It compares only those markets where cloud is a meaningful trend that can be exploited by technology providers. It excludes consumer spending and markets that cannot transition to cloud, for example, mobile devices.

More detailed analysis is available to Gartner clients in the report “Market Impact: Cloud Shift — 2022 Through 2025.” More information on cloud trends is available in the Gartner webinar “The Gartner Hype Cycle for Cloud Computing.”

Telcos Move to Public Cloud:

Dish Network is perhaps the poster child for this shift, with its ambitious plan to deploy its greenfield 5G network on Amazon Web Services (AWS). After a few delays, the big switch-on is expected to begin this year. Similarly, AT&T struck a deal last June to migrate its 5G network onto Microsoft Azure. Verizon is also using Azure, in this case to underpin its private mobile edge cloud service. North of that particular border, Bell Canada in July inked a deal to migrate various critical workloads – including IT, network functions and applications – to Google Cloud. It came less than two months after Bell teamed up with AWS to overhaul its business and consumer applications, as well as offer AWS-powered multi-access edge computing (MEC) services.

More recently, Telenor expanded its partnership with Amazon to jointly offer 5G and edge services to various industry verticals. In short, more and more telcos are coming to the conclusion that hyperscale public cloud offers a ready-made route for them, not just to address the enterprise IT market, but to also make their own networks cloud native.

References:

https://www.gartner.com/en/newsroom/press-releases/2022-02-09-gartner-says-more-than-half-of-enterprise-it-spending

Public cloud forecast to account for majority of IT spending by 2025

China to accelerate 5G roll-outs while FCC faces “rip and replace” funding shortfall

China Daily reports that local governments in China are doubling down on plans to accelerate 5G rollouts in 2022. More than 20 provincial and municipal governments in China have emphasized efforts to accelerate construction of “new infrastructure” like 5G and data centers in their work plans for this year.

Shanghai plans to build more than 25,000 5G base stations this year (do you really believe that?) to push forward the in-depth coverage of the superfast wireless network. The city also has ambitions to build super large computing power platforms to meet growing demand.

Zhao Zhiguo, spokesman for the Ministry of Industry and Information Technology, China’s top industry regulator, said earlier:

“2022 is a critical year for the large-scale development of 5G applications. We will continue to improve 5G network coverage and accelerate the in-depth integration of 5G and vertical industries.”

One of the priorities is to moderately speed up the coverage of 5G in counties and rural towns in China, Zhao said.

Ten ministries, including the Cyberspace Administration of China, recently unveiled a digital rural development action plan for the period from 2022 to 2025, which called for an intensified push to promote digital infrastructure upgrades in rural areas.

Telecom operators are also moving fast. China Mobile, the nation’s largest telecom carrier, said it aims to achieve continuous 5G coverage in rural towns across the country by the end of this year.

Telecom carriers’ 5G plans seek to harness the power of more than 1.4 million 5G base stations that were deployed in China by the end of last year (but can you really trust that China government reported number?). 5G signals are already available in urban areas of all of China’s prefecture-level cities, more than 98% of county-level towns and 80 percent of rural towns, MIIT data showed.

5G Cell Tower in China.  Image courtesy of China Daily

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In the U.S., it’s a different story. The Federal Communications Commission (FCC) found a shortfall in funding for its plan to replace Chinese telecom equipment. Inadequate finance is likely to pose connectivity challenges to people in remote areas in the US, experts said.

According to a report on MobileWorld Live, a telecom industry website, the FCC said local telecom operators’ requests for funding to replace network equipment made by Chinese companies Huawei and ZTE totaled $5.6 billion, almost three times the $1.9 billion allocated by the US federal government. Network operators serving less than 10 million customers which used government subsidies to buy Huawei or ZTE equipment before 30 June 2020 were eligible to apply for funding to cover costs associated with removing, replacing and disposing of the Chinese network equipment.

In a statement released last week, FCC Chairwoman Jessica Rosenworcel said that 181 carriers submitted initial reimbursement application requests totaling approximately $5.6 billion.  Carriers are required to remove and replace existing network gear from Huawei and ZTE after the vendors were deemed national security risks. Congress in late 2020 set aside around $1.9 billion to fund and carry out the effort under the Secured and Trusted Communications Act 2019.

“Last year Congress created a first-of-its kind program for the FCC to reimburse service providers for their efforts to increase the security of our nations communications networks,” Rosenworcel said. “We’ve received over 181 applications from carriers who have developed plans to remove and replace equipment in their networks that pose a national security threat,” she added.

The FCC banned U.S. telecom carriers from buying Huawei and ZTE’s equipment via federal subsidies, citing what it alleged were national security concerns. The two Chinese tech companies have repeatedly denied the accusations, which they said are groundless.

Xiang Ligang, director-general of the Information Consumption Alliance, a telecom industry association in China, said Huawei and ZTE’s products are currently used by US telecom carriers to offer network and broadband services in some of the most remote regions in the US. Xiang said that the U.S. order to replace Huawei/ZTE wireless network equipment in rural areas will result in the lack of quality telecom services.

Steve Berry, president and CEO of the Competitive Carriers Association, a trade group for about 100 wireless providers in the US, issued a statement calling on the U.S. government to ensure the FCC program is fully funded so that connectivity is maintained during the operators’ transition to new wireless telecom equipment for their cellular networks.

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Table 1: All the companies asking for FCC “rip and replace” funding

Company Applicant Wireless Wireline Total Vendor
Viaero Wireless NE Colorado Cellular Inc X $1,194,000,000 Ericsson
Union Wireless Union Telephone Company X $688,000,000 Nokia
ATN International Commnet Wireless, X $418,768,726
Gogo Gogo Business Aviation LLC X $332,770,202
NTCH PTA-FLA, Inc. $273,971,426
Lumen Level 3 Communications, LLC X $269,999,994
Stealth Communications X $199,066,226
SI Wireless, LLC X $181,023,489
United Wireless Communications, Inc. X $173,471,477
Hotwire Communications, Ltd. X $141,299,003
Latam Telecommunications, L.L.C. $138,060,092
NEMONT TELEPHONE COOPERATIVE INC X $125,551,024
NTUA Wireless, LLC X $124,447,019
Windstream Communications LLC X $118,271,652
Rise Broadband Skybeam, LLC X $106,159,884
Pine Telephone Company X $87,095,419
Mediacom Communications Corporation X $86,171,976
Flat Wireless, LLC X $76,284,671
Pine Belt Cellular, Inc. X $74,856,191
James Valley Cooperative Telephone Company X $53,000,000
AST Telecom, LLC d/b/a Bluesky X $49,959,592
Country Wireless LLC X $47,508,982
Point Broadband Fiber Holding, LLC X $47,172,086
Board of Trustees, Northern Michigan University X $45,796,636
Hargray Communications Group, Inc. X $42,785,933
NfinityLink Communications, Inc. $37,535,905
Plateau Telecommunications, Incorporated X $30,000,000
Texas 10, LLC $29,088,795
Mark Twain Communications Company X $29,000,000
Panhandle Telecommunication Systems Inc $28,925,552
TelAlaska Cellular, Inc. X $26,567,517
Central Louisiana Cellular, LLC X $26,264,528
TRANSTELCO INC. X $25,573,213
Beamspeed, L.L.C. X $19,596,157
Triangle Telephone Cooperative Association, Inc. X $18,336,507 Mavenir
Eastern Oregon Telecom, LLC X $18,122,185
Puerto Rico Telephone Company, Inc. X $16,857,851
Vitelcom Cellular, Inc. d/b/a Viya Wireless X $15,716,011
Santel Communications Cooperative, Inc. X $14,604,337
MHG Telco LLC X $14,456,482
WorldCell Soutions, LLC X $12,673,559
LIGTEL COMMUNICATIONS INC. X $12,000,000
Point Broadband Fiber Holding, LLC X $11,344,724
Copper Valley Wireless, LLC X $11,151,417
Premier Holdings LLC $9,759,680
Eltopia Communications, LLC X X $7,741,951
Metro Fibernet, LLC X $7,567,518
Bestel (USA), Inc. $6,887,500
PocketiNet Communications Inc. $6,741,452
Carrollton Farmers Branch ISD X $5,943,974
Windy City Cellular X $5,562,067
Bristol Bay Cellular Partnership X $5,269,183
Kings County Office of Education $5,221,191
Interoute US LLC $4,867,140
Pasadena ISD $4,387,311
Velocity Communications, Inc. X $4,158,729
Advantage Cellular Systems, Inc. X $3,479,000
New Wave Net Corp $3,365,772
FirstLight Fiber, Inc. $3,306,644
Gigsky, Inc. X $3,128,678
Triangle Communication Systems Inc $2,779,371
FIF Utah LLC X $2,662,538
Gallatin Wireless Internet, LLC X $2,399,162
Moore Public Schools $2,023,243
HUFFMAN ISD $1,920,588
Crowley ISD $1,720,496
Castleberry Independent School District X $1,672,527
One Ring Networks, Inc. $1,649,281
University of San Francisco $1,570,437
Leaco Rural Telephone Cooperative, Inc. $1,511,617
Zito West Holding, LLC X $1,453,469
Southern Ohio Communication Services Inc $1,312,844
Xtreme Enterprises LLC X $1,097,283
Virginia Everywhere, LLC X $562,001
South Canaan Telephone Company $542,139
Palmer ISD $520,146
Waxahachie ISD X $457,396
Hunter Communications & Technologies LLC $432,348
Utah Telecommunication Open Infrastructure Agency $413,760
COMMSELL $302,400
VTel Wireless, Inc. X $283,618
Trinity Basin Preparatory, Inc. $242,510
NTInet, inc $198,340
LakeNet LLC X $193,277
IdeaTek Telcom, LLC X $181,899
Millennium Telcom, L.L.C., dba OneSource Communications $165,195
Inland Cellular LLC X $117,183
Roome Telecommunications Inc $92,144
Milford Independent School District $40,399
Angeles Enterprises X $33,368
Crystal Broadband Networks X $28,704
Natural G.C. Inc. $27,313
Webformix Internet Company X $22,400
Northern Cambria School District $14,400
Deer Creek Independent School District $-
$5,609,338,024
This FCC data was initially compiled by vendor Mavenir and then expanded, checked and edited by Light Reading staff.

“We’ve received over 181 applications from carriers who have developed plans to remove and replace equipment in their networks that pose a national security threat. While we have more work to do to review these applications, I look forward to working with Congress to ensure that there is enough funding available for this program to advance Congress’s security goals and ensure that the US will continue to lead the way on 5G security,” FCC Chairwoman Jessica Rosenworcel said in a statement.

References:

http://www.chinadaily.com.cn/a/202202/09/WS620303dfa310cdd39bc85734.html

The Amorphous “Edge” as in Edge Computing or Edge Networking?

There are many definitions for where the “edge” is actually located. To datacenter experts, the edge is a small datacenter closer to users.  For telecom people, the edge is regional data center or carrier owned point of presence that is not in the cloud. To enterprise users, the edge can be on premises.  What does the “edge” mean to you?

Extreme Networks suggests the edge is “any form of application delivery that is not in the cloud.  To illustrate the concept, and the multiplicity of edges, the company created an infographic that highlights some of the most common meanings of “edge.”

Image Courtesy of Extreme Networks

References:

Edge is Everything, and Nothing

Multi-access Edge Computing (MEC) Market, Applications and ETSI MEC Standard-Part I

ETSI MEC Standard Explained – Part II

Nokia delivers private 4G fixed-wireless access (FWA) network for underserved students living in rural California

Nokia completed the first of a two-phase deployment of 4G fixed-wireless access (FWA) network with partner AggreGateway, to provide broadband internet connectivity to underserved students in the Dos Palos Oro Lomo (DPOL) school district of California.

The district comprises five campuses and serves a population of 5,000 residents. The Nokia platform will provide internet access to the homes of 2,400 students using Nokia Private 4.9G/LTE Digital Automation Cloud (NDAC) operating in the CBRS/On-Go GAA spectrum, and customer premises equipment including Nokia FastMile 4G Gateways and WiFi Beacons.

The DPOL technology team will operate its new LTE network through the centrally secure Nokia DAC Cloud monitoring application. DPOL will also provision LTE / Wi-Fi hotspots to students to be used with any standard laptop or tablet to access broadband internet.

The project’s first phase was completed in November 2021. Nokia and AggreGateway will complete the second phase in 2022.

The Federal Communications Commission (FCC) has reported nearly 17 million school children in the USA lack internet access at home, creating a nationwide ‘homework gap’ (Federal Communications Commission). This became even more pronounced during the pandemic as schools closed and distance learning became the new normal.

Image Credit: Nokia

Paoze Lee, Technology Systems Director of the Dos Palos-Oro Loma school districtsaid: “As we put a plan in place for distance learning during the pandemic we found we could only provide coverage for approximately 50% of DPOL students via commercial wireless network providers. Working with Nokia and AggreGateway, we are taking the next steps to level the field and ensure every student has the same access to our learning facilities.”

Octavio Navarro, President of AggreGateway, said: “Growing up in a rural small town like Dos Palos-Oro Loma, I experienced the digital divide firsthand. Being able to implement a Nokia private wireless solution for the students has been beyond rewarding. The IT staff from DPOL, AggreGateway, and Nokia worked seamlessly together to achieve this goal. We are excited, proud, and look forward to the continued success.”

Matt Young, Head of Enterprise for North America at Nokia, said: “We are pleased to help close the digital divide in the Dos Palos-Oro Loma school district. For many rural areas of the US it’s not commercially viable to build out networks, and often families on the lowest income suffer. Leveraging our DAC and FastMile FWA technologies we can enable the delivery of much needed internet connectivity to students in the area.”

The project’s first phase was completed in November 2021. Nokia and AggreGateway will complete the second phase in 2022.

About Nokia:

As a trusted partner for critical networks, we are committed to innovation and technology leadership across mobile, fixed and cloud networks. We create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs.

Adhering to the highest standards of integrity and security, we help build the capabilities needed for a more productive, sustainable and inclusive world.

About AggreGateway:

Based in San Diego, California, AggreGateway is a unique group of network and wireless engineers that are experienced in designing networks within the private, public safety, transportation, utilities, government, and educational verticals. AggreGateway provides network consulting services, wireless solutions, LAN/WAN design and implementation, network security, systems integration, and managed services. Our goal is to provide a range of robust and flexible network solutions that are customized to each individual network.

References:

https://www.globenewswire.com/news-release/2022/02/08/2380783/0/en/Nokia-delivers-private-wireless-to-bridge-the-digital-divide-for-students-homes-in-rural-California.html

https://www.telecompaper.com/news/nokiadelivers-private-wireless-network-for-studenthomes-in-rural-california–1413379

E-Space announces $50M in seed funding to put 100K sustainable satellites in orbit and clean up space debris

Greg Wyler, the space entrepreneur who founded founded both O3b Networks and OneWeb [1.], plans to put up to 100,000 satellites in orbit this decade with his latest satellite business venture named E-Space. The company on Monday said it had raised $50 million in seed funding (largest space seed round ever) from Prime Movers Lab, a fund that invests in breakthrough scientific start-ups.

E-Space says it will enable a new generation of space-based communications capabilities. The start-up plans to create a vast “mesh” network of small satellites that can deliver bespoke and commercial services to business and government, from secure communications to remote infrastructure management.

In a world where satellites are becoming space polluters, the new E-Space systems have the double bottom line of sustainability as they will eventually actively and sacrificially capture and deorbit small debris in space while performing their function as communications satellites.

“One of the best ways to understand and manage Earth is from space,” said Wyler, founder and chairman of E-Space. “We designed E-Space to democratize space, to enable the collection of continuous data about our planet with real-time information of sensors and devices across the world to combat climate change, and to upgrade our electric grids. Importantly, we’ve built sustainability into everything we do. We are designing our systems to not only prevent space debris generation, but to eventually actively reduce space debris so generations to come will be able to access the power of space.”

Wyler’s plans come as the world becomes increasingly concerned about the risk of collisions in orbit and resulting space debris. Since 2019 the number of working satellites has risen 50 per cent to roughly 5,000, largely because new commercial groups are exploiting lower launch costs to build businesses in low-earth orbit, 150km-200km above the earth. Elon Musk aims to launch some 40,000 satellites for his Starlink internet service.

Wyler insisted E-Space will leave low-earth orbit cleaner than before its satellites are launched, with a network that will collect and deorbit debris even as it provides connectivity services. The satellites have a substantially smaller cross section than rivals, Wyler told the Financial Times, and will be designed to “crumple” rather than break apart when struck. They will also “entrain” any debris they encounter and automatically deorbit when a certain amount has been collected.

“Like oysters in the river that filter the river and clean it, our satellites are the first to be designed to clean space.  The more satellites we have, the cleaner space will be,” Wyler added.

Greg Wyler while at OneWeb in 2019. IMAGE courtesy of Sarah L Voisin/The Washington Post/Getty

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Anton Brevde, partner at Prime Movers Lab and on the board of E-Space, suggested Wyler’s innovative design would do for satellites what Apple’s iPhone did for mobile phones.

“Greg is an icon of space innovation with an unparalleled track record of pushing the industry forward by turning bold ideas into everyday reality.  E-Space is uniquely built to bring the power of space to any business or government while actively reducing the existential threat of space debris. The company already has several advanced conversations with major customers and is poised to take satellite mesh networks mainstream.

”How do you minimize a 300kg satellite to something that is an order of magnitude smaller? How do you go from the personal computer to the iPhone, something that is smaller and thinner.  It’s a whole bunch of innovation that came together. He has been brainstorming for years on how to make communications satellites as small and cheap as possible,” Brevde added.

E-Space “must be able to freely decide on its technology path, on its vendor selection and on its component path, where shareholders are purely financial as opposed to strategic,” he added. The start-up plans to launch its first test satellites next month and a second batch at the end of the year, after which it aims to start building its constellation. Wyler acknowledged that E-Space was likely to require another funding round but insisted his network would cost a fraction of existing LEO constellations. “The historical model of spending $5bn-$10bn is broken,” he said. “We are running at about 10 per cent of the cost of prior LEO constellations.”

E-Space has all the licenses needed to be able to deliver the service on multiple frequencies, Wyler said. The licenses had been acquired through Rwanda, which last year applied to the International Telecommunications Union (ITU) in Geneva to license more than 300,000 satellites. [The Rwandan government was an original investor in OneWeb.]

Note 1.  Wyler founded OneWeb in 2012 under the name WorldVu and was the company’s first CEO. OneWeb went bankrupt when investors pulled out in 2020, and the company was brought back under an ownership consortium led by Bharti Global, including the United Kingdom government, Eutelsat, and Softbank. OneWeb was also formed with the mission of connecting the world. The company still promotes that mission, along with providing connectivity to enterprise verticals.

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E-Space will provide the world’s first federated systems that can dynamically extend satellite capacity for a multitude of applications, ranging from secure communications to managing remote infrastructure.

Core to this approach is E-Space’s new generation of satellites that make space affordable and accessible, enabling custom networks for companies and governments globally while providing unparalleled security and resiliency. E-Space’s novel peer-to-peer satellite communication model enables real-time command and control and global insights. Dedicated constellations ensure sovereignty and eliminate exposure to foreign entities, using a “Zero Trust” topology to protect data.

E-Space places sustainability at the heart of its architecture, building on five key design tenets to make space safe:

  1. Minimize satellite debris on collision: Satellites should minimize the number of new debris objects that are generated, with zero being the ideal goal.
  2. Capture and deorbit: Satellites should be designed to minimize the debris from objects they hit and capture debris they contact to prevent further collisions.
  3. Fail safe: Satellites should be designed to fail into a high-drag configuration where they passively, and quickly, deorbit.
  4. 100% demise: Satellites must fully demise upon re-entry into the Earth’s atmosphere.
  5. Small cross section: Large cross-section satellites crowd others from space and will cause collisional cascading and debris creation. Small cross-sections make satellites much less vulnerable to collision and LEO constellations should limit their individual and cumulative cross-sections. System-wide cross-sections should be tracked and considered relative to calculations on total orbital carrying capacity, for individual altitudes to enable appropriate sharing.

The investment fully funds E-Space’s “Beta 1” launch of its first test satellites in March 2022 as well as its second “Beta 2” launch later this year. Mass production is slated for 2023. The company is composed of two independent entities based in France (E-Space SAS) and the United States (E-Space, Inc.).

About E-Space:

E-Space is democratizing space with a mesh network of secure multi-application satellites that empowers businesses and governments to access the power of space to solve problems on Earth. Founded by industry pioneer Greg Wyler, E-Space provides satellite constellation deployments with higher capabilities and lower cost to enable a new generation of services and applications, from 5G communications to command and control systems. The company puts sustainability at the forefront, with a purposeful design that minimizes and reduces debris and destruction while preserving access to space for future generations. Learn more at e-space.com.

Addendum:

China is also in the smart satellite business.  A Financial Times editorial on Monday by William Schneider stated:

“Both China and Russia have well developed advanced offensive capabilities in space. In late January, for example, China’s Shijian 21 (CJ-21) satellite disappeared from its regular position in geostationary orbit 22,000 miles above the earth. The CJ-21 maneuvered close to one of China’s malfunctioning satellites in its 35-satellite Beidou constellation. There it used a grappling arm to move the malfunctioning satellite to a “graveyard” orbit.”

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References:

http://www.parabolicarc.com/2022/02/07/e-space-announces-largest-space-seed-round-ever-to-democratize-space-with-sustainable-satellites-and-reduce-orbital-debris/

https://www.satellitetoday.com/business/2022/02/07/new-greg-wyler-startup-e-space-raises-50m-in-funding/

https://www.ft.com/content/0db57559-a8d0-4e9b-aeef-e3e7d796d635

https://www.ft.com/content/7d566088-7d25-4fde-9b02-311f86eb845e

China to complete Beidou satellite-based positioning system by June 2020- to be used with 5G

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