India Mobile Congress 2018: Telecom Equipment Vendors to Invest over Rs 4,000 crore in India; Samsung in Spotlight
IEEE President Jim Jefferies speaking at India Mobile Congress (IMC) 2018
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Telecom Equipment Vendors Investment in India:
Telecom equipment makers including Cisco, Samsung, Ericsson, Nokia, Intel and Sterlite Tech (from India) will be investing more than Rs 4,000 [1] crore in India, announced Telecom Minister Manoj Sinha Saturday at the third day of the India Mobile Congress (IMC) 2018. That investment commitment is in line with India Prime Minister Narendra Modi‘s goal to achieve a capital gain of $100 billion (about Rs 7 lakh crore) by 2022. The amount invested will increase further, said Sinha, adding that the investment commitment shown by the equipment manufacturers is a part of government’s ambitious policy target to achieve Rs 7 lakh crore worth of investment by 2022. Sinha said discussions and announcements at IMC show that India is ready for the emerging 5G services. The 5G technology (based on the forthcoming IMT 2020 standard) would facilitate massive machine-to-machine (M2M) communication and has many other applications.
Note 1. 4000 crores (= 400000 lakhs) is equal to 40000 million (40 billion). 40,000,000,000 INR is equal to 544,400,000 USD @ 73.48 Indian rupees to 1 US dollar.
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These are the first set of investments flowing in after the announcement of National Digital Communications Policy. In August this year, the India Cabinet has approved the National Digital Communications Policy 2018 that aims to attract $100 billion of investment and creation of 4 million jobs in next four years, in addition to an aggressive focus on next-generation of technologies. However, the investments will be made over a period of next one-two years, according Telecom Secretary Aruna Sundararajan.
Among all these telecom equipment makers, Sterlite Tech is the only homegrown (Indian) company that locally produces end-to-end optic fiber gear, a critical digital infrastructure required to increase 4G-LTE footprint and enabler of upcoming “5G” technology roll-outs.
Meanwhile, Korea’s Samsung, Sweden’s Ericsson, Finland’s Nokia and the US-based Cisco have already partnered with India service operators and the telecom department to conduct field trials and demonstrate India-specific 5G use cases.
Industry experts discussed challenges in the digital communications during the three-day India Mobile Congress 2018 event, which saw participation from 20 countries and 300 companies, Sinha said. Sinha added that discussions and announcements at the event show India is ready for the emerging 5G services. The 5G technology could facilitate massive machine-to-machine communications and has multiple usages.
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The India Mobile Congress 2018 was organized jointly by the India DoT and industry group Cellular Operators Association of India (COAI) which represents telcos such as Bharti Airtel, Reliance Jio and Vodafone Idea as well as gear makers such as Huawei, Ericsson, Nokia, Cisco and Samsung.
Sundararajan said IMC has generated more enthusiasm around 5G and the government has already committed to be at par with the world in launching this next generation services. “We have already demonstrated government intent that India does not miss the 5G bus. We have already started to take initial set of action to make an enabling environment. We expect actual allocations of spectrum (for 5G services) to begin in the second half of next year,” Sundararajan added.
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Samsung in IMC 2018 Spotlight:
At IMC 2018, Samsung announced its plan for India’s first large-scale 5G trial, scheduled to take place in the first quarter of 2019 in collaboration with the Department of Telecommunications (DoT).
In his keynote speech at the event, Youngky Kim, President and Head of Networks Business at Samsung Electronics, said, “Samsung will pave the way for 5G to unlock the full potential of India together with industry leaders. We are witnessing a rise in adoption of new technologies, inspired by ‘Digital India’ and spurred by the transition to 4G.’
“Our partnership with Reliance Jio has empowered millions, making their everyday lives better. Our roadmap for 5G showcases our strong commitment to India. We will continue to be a partner in Government of India’s Digital India mission,” said HC Hong, President and CEO, Samsung Electronics SouthWest Asia. Leading Disruptive Changes Using 4G in Digital India Since 2012, Samsung has been a key partner of the Indian telecommunications industry. During President Kim’s keynote speech at the IMC, he said that Samsung has successfully built the world’s largest greenfield and the most advanced 4G LTE networks nationwide by partnering with Reliance Jio.
At IMC 2018, Samsung showcased how its 5G solutions can enable a variety of 5G-powered business models and scenarios, including: 5G home broadband services, Smart Cities and Smart Agriculture.
Samsung’s 5G Skyship (see photo below), which was developed in partnership with Korea Telecom, was flying over the exhibition center to demonstrate first response use cases. Samsung says it has been a pioneer in developing 5G solutions using its technology and experience. With its successful development of the first commercial ASIC-based 5G modems and mmWave RFICs, the company has been manufacturing compact-sized 5G radio and router devices and CPEs.
Photo provided by KT shows an unmanned airship using “high-end 5G” technology at the India Mobile Congress (IMC) 2018 in New Delhi
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Samsung says its years of commitment to R&D investments since 2000 have come to fruition, as the company has been selected by the world’s leading operators such Verizon, AT&T, Sprint and SK Telecom for both 4G and 5G solutions and services. At the root of this achievement are Samsung’s end-to-end solutions spanning network equipment, devices, chip sets and the world’s-first regulatory approval of 5G equipment by the U.S. Federal Communications Commission (FCC). Samsung will continue its legacy of 4G LTE to enable digital transformation and provide a seamless path to 5G.
Fujitsu, Ericsson form 5G partnership focused on Japanese market
Fujitsu has entered a strategic partnership with Ericsson aimed at delivering joint end-to-end 5G solutions, initially for the Japanese market. The two companies plan to combine their radio access and core network portfolios to deliver 5G mobile network services and solutions across Japan before expanding to other markets worldwide. The companies will also collaborate on R&D activities related to 5G. This agreement comes shortly after NEC and Samsung announced their own 5G partnership aimed at developing end-to-end 5G system solutions.
Fujitsu has been collaborating on open standards activities driven by major operators and aims to achieve interoperability for its radio access products. According to Fujitsu EVP of network business Tango Matsumoto, this partnership will support that aim.
“Through this partnership with Ericsson, we will provide flexible 5G network systems that are open and standard compliant, and will leverage our expertise in wireless technologies and network integration to a wide range of customers in and outside of Japan,” he said. “From (enhanced) mobile broadband, expected to be the first widespread use case of 5G, to the IoT and beyond, this partnership holds out the promise of exciting new business opportunities,” he added.
Ericsson EVP of networks Fredrik Jejdling added that the partnership will support the company’s efforts to carve out a share of the Japanese 5G market.
“Our global expertise in 5G combined with our understanding of the local market puts us in an excellent position to support the introduction of 5G in Japan,” he said. “By working closely with operators and partners, we are creating solutions that will bring successful use cases and applications to the market. With Fujitsu we get an excellent partner to accelerate this development.”
Fujitsu’s previous work on 5G saw it last year kick off a field trial of its 5G ultra high-density distributed antenna technology and tests of simultaneous high-speed transmission of high-res video using the antenna system, in partnership with Japanese carrier NTT DoCoMo.
Ericsson has the second-biggest share of global base-station sales — approaching 30%, according to IHS Markit. Ericsson’s equipment is already being used in parts of the U.S. that are rolling out 5G service.
Fujitsu, which does most of its business in Japan, holds less than a 1% global base station market share. Fujitsu and Fujitsu Laboratories, which have been working on 5G trials with NTT DoCoMo since 2014, have also collaborated with NTT DoCoMo on evaluating communications speed for distributed antennas deployed at multiple outdoor locations.
Reference:
https://www.ericsson.com/en/press-releases/2018/10/fujitsu-and-ericsson-team-up-on-5g-partnership
3GPP Workshop: IMT 2020 Submission to ITU-R WP5D and Timelines for 5G Standards Completion
3GPP RAN for IMT 2020, by Balazs Bertenyi, Chairman of 3GPP RAN (Nokia):
The Workshop on 3GPP submission towards IMT-2020 was held in Brussels, Belgium, October 24-25, 2018, hosted by the European Commission. The meeting was intended to inform the Independent Evaluation Groups and the industry in general about the 5G mobile communication system and corresponding evaluations that 3GPP has and will submit as a candidate for IMT-2020 to ITU-R. The workshop also had a live streaming service kindly provided by the host and announced shortly before the meeting via the 3GPP web page (see reference below) and the RAN reflector.
Introduction:
3GPP has been working extremely hard to bring 5G NR standards to the industry in an accelerated manner. Non-standalone 5G NR (New Radio) was completed in December 2017, and the corresponding ASN.1 has been stabilized in June/2018.
Standalone 5G NR was completed in June 2018, and the corresponding ASN.1 scheduled to be frozen in September/2018.
Some of the architecture options to facilitate migration from LTE to 5G NR will be completed in December 2018 and will still be within 3GPP Release 15.
3GPP has also approved the work program for Release 16 containing a host of new and enhanced functionalities for 5G NR. The target completion for Release 16 is December/2019.
3GPP submission to IMT2020 (ITU-R WP5D) will contain both Release 15 and (mostly) Release 16 functionality.
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Software- and Service-centric Transformation:
One CoreNetwork fits all => Open & Flexible Enabler
Telecom Operators => Multiple Stakeholders
Phones => Things
Procedures => Services
Static Topology => On-demand Resources
Dedicated Hardware => Orchestrated Resources
Network Function => Virtualization
Single Network => Slice
5G Core Technologies (subset):
Orchestration and Virtualization (NFV) – de-couple logical function from hardware
Slicing – logical end-2-end networks tailed to customer needs
Edge Computing (MEC) – resources where they are needed (URLLC)
Exposure (API) – 3rd party access to 5G services
Service Based Architecture (SBA) – stateless, open, flexible
Harmonized Protocols & Access Agnostic – generic solutions
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Physical Layer:
· NR addresses a broad range of use cases with a flexible physical layer structure
· Key enablers include
o Ultra-lean design
o Operability in a wide spectrum range
o Low latency
o Forward compatible design
o Advanced multi-antenna techniques
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Comparison of NR-MIMO vs LTE MIMO
|
LTE Rel-8 |
LTE-A Pro Rel-15 |
NR Rel-15 |
Purpose |
Spectral efficiency enhancement |
Spectral efficiency enhancement |
– Coverage enhancement – Spectral efficiency enhancement |
Multi-beam operation |
No specification support |
No specification support |
– Beam measurement, reporting – Beam indication – Beam failure recovery |
Uplink transmission |
– Up to 4 layers per UE – Up to 8 layers for MU-MIMO (cyclic shifts for ZC-sequence) |
– Up to 4 layers per UE – Up to 8 layers for MU-MIMO |
– Up to 4 layers per UE – Up to 12 layers for MU-MIMO (orthogonal ports) |
Downlink transmission |
Up to 4 layers per UE |
– Up to 8 layers per UE – Up to 4 layers for MU-MIMO (orthogonal ports) |
– Up to 8 layers per UE – Up to 12 layers for MU-MIMO (orthogonal ports) |
Reference signal |
– Fixed pattern, overhead – Up to 4 TX antenna ports (CRS) |
– Fixed pattern, overhead – Up to 32 TX antenna ports (CSI-RS) |
– Configurable pattern, overhead – Up to 32 TX antenna ports (CSI-RS) – Support for above 6GHz |
3GPP ……………………
””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””
IMT-2020 – Final submission
- Calibration for self evaluation
- Prepare and finalize initial description template information that is to be submitted to ITU-R WP 5D#29.
Step 2: From early 2018 to Sep 2018, targeting “update & self eval” submission in Sep 2018
- Performance evaluation against eMBB, mMTC and URLLC requirements and test environments for NR and LTE features.
- Update description template and prepare compliance template according to self evaluation results.
- Provide description template, compliance template, and self evaluation results based on Rel-15 in Sep 2018.
Step 3: From Sep 2018 to June 2019, targeting “Final” submission in June 2019
- Performance evaluation update by taking into account Rel-16 updates in addition to Rel-15
- Update description template and compliance template to take into account Rel-16 updates in addition to Rel-15
- Provide description template, compliance template, and self evaluation results based on Rel-15 and Rel-16 in June 2019.
”””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””””
Let’s compare that with the ITU-R WP5D Timeline Technology Aspects WG (RIT, SRIT): Note IMT 2020 items in the workplan!
July 2019 |
[Geneva] WP 5D #32 |
• Finalize draft new Report ITU-R M.[IMT.MS/MSS.2GHz] • Further update/Finalize draft new Report/Recommendation ITU-R • Finalize draft new Report/Recommendation ITU-R M.[IMT.3300 MHz RLS] • Finalize Doc. IMT-2020/YYY Input Submissions Summary • Finalize revision of Recommendation M.2012 • Finalize Addendum 5 to Circular Letter IMT‑2020 • Workshop on evaluation of IMT-2020 terrestrial radio interfaces |
December 2019 |
[Geneva] WP 5D #33 (max 5 day meeting) |
• Focus meeting on evaluation – review of external activities in Independent Evaluation groups through interim evaluation reports |
February 2020 |
[TBD] WP 5D #34 |
• Finalize Doc. IMT-2020/ZZZ Evaluation Reports Summary • Finalize Doc. IMT-2020/VVV Process and use of GCS • Finalize Addendum 6 to Circular Letter IMT‑2020 • Finalize draft new Report M.[IMT.AAS] • Finalize draft new Report ITU-R M.[HAPS-IMT] |
June 2020 |
[TBD] WP 5D #35 |
• Finalize draft new Report ITU-R M.[IMT-2020.OUTCOME] • Finalize Addendum 7 to Circular Letter IMT‑2020 |
October 2020 |
[TBD] WP 5D #36 |
• Finalize draft new Recommendation ITU-R M.[IMT‑2020.SPECS] • Finalize Addendum 8 to Circular Letter IMT‑2020 |
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Now let’s examine the ITU-R WP5D Oct 2018 meeting input contributions related to IMT 2020:
[Note the tremendous support of companies backing 3GPP]
[1050] Preliminary description template and self-evaluation of 3GPP 5G candidate for inclusion in IMT-2020 – multiple companies co-authored this contribution! |
TECHNOLOGY ASPECTS |
Updated submission of candidate IMT-2020 Radio Interface Technology |
TECHNOLOGY ASPECTS |
||
Consideration on IMT-2020 evaluation process |
TECHNOLOGY ASPECTS |
Proposed preliminary draft new Report ITU-R M.[IMT_EXPERIENCES] |
GENERAL ASPECTS |
Proposals on workplan and document template for process and the use of Global Core Specification (GCS), references and related certifications in conjunction with Recommendation ITU‑R M.[IMT-2020.SPECS] |
TECHNOLOGY ASPECTS |
Proposals on working document towards IMT-2020/VVV and its workplan |
TECHNOLOGY ASPECTS |
||
Second submission of a candidate technology of IMT-2020 |
TECHNOLOGY ASPECTS |
Proposal on continuity of development of working document towards a preliminary draft new Report ITU-R M.[IMT.EXPERIENCES] – National [approaches, best practices and/or] experience of some countries in which certain frequency band(s) are allocated to mobile services and identified for IMT systems related to technical, operational and regulatory/procedural aspects |
GENERAL ASPECTS |
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Below is a chart of the organizations that have indicated they will submit candidate IMT 2020 RITs to ITU-R WP5D. The list includes: 3GPP, China, Korea, ETSI/DECT Forum, and the India Standards organization (TSDSI). ALL BUT THE ETSI/DECT Forum will be based on 3GPP New Radio (NR) for the core RIT PHY layer.
References:
http://www.3gpp.org/news-events/3gpp-news/1976-imt_2020
http://www.3gpp.org/news-events/3gpp-news/1987-imt2020_workshop
http://www.3gpp.org/news-events/3gpp-news/1994-copatibility
Busting a Myth: 3GPP Roadmap to true 5G (IMT 2020) vs AT&T “standards-based 5G” in Austin, TX
Samsung Partners with NEC and Qualcomm for 5G, Licenses Nokia Patents
Samsung has announced a new 5G partnership agreement with NEC aimed at exploring new business opportunities in the global telecom market. The two electronics/ network equipment companies will combine their 5G technologies and capabilities to provide mobile operators with 5G solutions that are localized for each region, and include customized services and flexible architectures to meet operators’ varying needs.
Note that there are only five mainstream cellular base station makers- Ericsson, Nokia, Huawei, ZTE, and Samsung. NEC wants to break in to that elite group.
“5G development based on standardization (IMT 2020???) will help to accelerate business transformation throughout global markets,” NEC EVP and president of networks services Atsuo Kawamura said.
“As 5G commercialization is just around the corner, we are confident that the partnership with Samsung will continue to solidify our stance as a 5G leader.”
“5G will unlock the potentials, create new values and push the limits of today’s technology,” added Samsung president and head of networks Youngky Kim.
“We are excited to announce our joint efforts with NEC to boost 5G end-to-end solution portfolio for the best user experience.”
According to NEC executive vice president Atsuo Kawamura, the partnership with Samsung will ensure the companies remain out in front of 5G end-to-end technology globally. Kawamura said NEC will also provide NTT DoCoMo with “remote diagnosis and advanced security that combine 5G with the latest ICT”.
Following the standardisation of 5G NR specs in December last year, both NEC Corporation and Samsung had announced the beginning of the full-scale development of 5G NR including large-scale trials and commercial deployment, along with Huawei, Ericsson, Intel, Nokia, AT&T, BT, China Mobile, China Telecom, China Unicom, Deutsche Telekom, NTT DoCoMo, Fujitsu, KT Corporation, LG Electronics, LG Uplus, MediaTek, Orange, Qualcomm, SK Telecom, Sony Mobile Communications, Sprint, TIM, Telefonica, Telia Company, T-Mobile USA, Verizon, Vodafone, and ZTE.
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Samsung has already been selected as a vendor for Verizon’s launch of a residential 5G service across parts of Sacramento, Los Angeles, Houston, and Indianapolis, supplying its 5G home and outdoor router, 5G Radio access unit and digital unit, and virtualised radio solutions, as well as supplying 5G-ready solutions for both Sprint and AT&T.
It will also be one of the vendors for SK Telecom’s 5G rollout in South Korea.
NEC, meanwhile, inked a 5G equipment supply deal with Japanese mobile carrier NTT DoCoMo in May, with the Japanese telecommunications carrier planning to launch its new mobile network in 2020, after the two undertook verification experiments on 5G wireless technologies earlier this year.
Under the deal, NEC will provide control units for 5G base stations as well as using software upgrades to ensure NTT DoCoMo’s existing base stations and telco equipment are compatible with 5G.
“Currently, high-density base station equipment that NEC began providing in February 2015 is already compatible with the advanced Centralised Radio Access Network (C-RAN) architecture advocated by DoCoMo, and is now being utilised as a base station control unit,” NEC said.
“Moreover, following a software upgrade, an advance in communications from LTE to LTE-Advanced has been achieved.”
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The NEC partnership follows Samsung announcement earlier this week that it would be partnering with Qualcomm on 5G small cell development to “open the door for massive 5G network speed, capacity, coverage, and ultra-low latency.”
Samsung said it would use Qualcomm’s FSM100xx 10nm small cell product announced in May, which works across both the sub-6GHz and millimetre-wave (mmWave) spectrum bands. The products are expected to begin sampling in 2020.
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Separately, Samsung has announced it has extended its agreement to license various Nokia patents for a multi-year period. The existing licensing agreement expires at the end of 2018.
“Samsung is a leader in the smartphone industry and has been a Nokia licensee for many years,” Nokia chief legal officer and Nokia Technologies president Maria Varsellona said.
“We are pleased to have reached agreement to extend our license. This agreement demonstrates the strength of our patent portfolio and our leadership in R&D and licensing for cellular standards including 5G.”
References:
https://news.samsung.com/us/nec-samsung-announce-5g-partnership-agreement/
https://www.zdnet.com/article/samsung-and-nec-announce-5g-partnership/
AT&T Communications CEO John Donovan on 3Q2018 Earnings Call
Broadband: Fiber deployment will drive broadband growth:
AT&T Communications is driving broadband growth in our fiber footprint. We now cover more than 10 million customer locations today and plan to add 4 million more locations in the next year. We already have substantially more than 3 million broadband customers in our fiber footprint. And the longer we have fiber in the market, the higher our penetration.
In fact, we expect our fiber broadband base to increase by more than 1 million subscribers this year. This shift to fiber is beginning to drive IP broadband ARPU growth. The strategic pivot we’re making with video, combined with our execution with fiber gives us the confidence that we will stabilize Entertainment Group EBITDA next year.
[Implication is that increased fiber to the building will stabilize AT&Ts linear video business (U-Verse and DirecTV) which has been losing subscribers to cord cutters. However, FTTB is only applicable to U-Verse- not satellite TV (DirecTV)].
Finally, we’re keeping a laser focus on costs in all of our businesses and maintaining our margins in Business Wireline.
FirstNet:
Our FirstNet team continues to execute extremely well. So far, we launched a nationwide FirstNet dedicated and physically separate network core with FirstNet traffic moving on it. We have priority and pre-emption in place, allowing continuous service during times of heavy traffic.
FirstNet devices are ready and available. These devices support all AT&T commercial LTE bands as well as the FirstNet Band 14 and meet the band priority selection technical requirements. And we’re six months ahead of schedule with our network deployment already covering about one-third of the expected FirstNet area.
We’re seeing in real time how we are performing in times of emergency with Hurricane Michael being the latest example. We began preparing for this storm before it arrived and our work continues even to today.
Because of these efforts, we were able to keep our customers, including first responders, connected during and after the storm in many areas. In fact, our network operated at 90%, and usually better, of normal performance in the areas affected by Hurricane Michael. And through our tight coordination with public safety, we rolled out network assets to impacted areas to keep first responders connected.
We also worked with local authorities to identify public safety agencies that were without service from their wireless provider and delivered hundreds of FirstNet-enabled devices to help these first responders carry out their important mission of keeping the public safe.
One first responder went as far to say, when everything else was down, FirstNet was working. That’s high praise, and we’re humbled that we can play a part in helping a community recover from such a devastating storm. That’s what FirstNet is all about.
We continue to push our deployment. We’re climbing towers and adding 700 megahertz, AWS, and WCS spectrum all at once. We’re also adding new radio capability, which will enable us to upgrade the tower to 5G, without another tower climb.
The first responder community is a great sales opportunity for us. It’s an area where we’ve been under-penetrated in the past. But with our dedicated network core and outstanding performance when it matters most to the first responders, we’re making headway.
We now have more than 250,000 subscribers on FirstNet with more than 3,600 agencies represented. With a sales team dedicated to building this base, we believe there’s a lot of opportunity waiting for us.
5G and LTE-LAA:
AT&T is on track to be the first wireless carrier to introduce mobile 5G services in the United States in the next few weeks. This will be standards-based 5G (what standard is that John???????????????????). We plan to introduce 5G in parts of 12 cities by the end of the year. And we’ve announced additional 5G cities for next year, as we drive toward nationwide coverage of our 5G network.
Editor’s Note/Sanity Check:
The first wave of AT&T “5G” markets will include Dallas, Atlanta, Waco, Charlotte, Raleigh and Oklahoma City. Mr. Donovan noted that this rollout is part of a ‘drive toward nationwide coverage of our 5G network’; a nationwide 5G coverage target date has not been disclosed. He also noted that the 5G service will leverage the telco’s substantial fiber-optic network (see Comment box below), saying ‘fiber (backhaul) is the backbone of 5G’ [Of course, we agree]. AT&T will pass 18 million customer locations with its fiber network this year, with 22 million locations targeted in 2019. However, neither AT&T’s or any “5G” network announced for this year or next will NOT be “standards based,” as there is only ONE!!!!! standard for 5G – IMT 2020 which won’t be completed till year end 2020.
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Second, our 5G foundation is in place (see below). We’ve completed 5G trials in several cities in the last three years. Fiber is the backbone of 5G, and we have one of the nation’s largest fiber networks. Including businesses, we pass about 18 million customer locations today and are expanding that to more than 22 million locations by next year.
5G Foundation:
Fiber passing ~22M units
• 14M Consumer by mid ‘19
• 8M Business
400+ 5G Evolution Cities in 2018
LTE-LAA in 24 Cities by End of Year
5G Introduction:
Completed 5G trials in multiple cities since 2016
Introducing mobile 5G in parts of 12 cities in 2018
-> 7 additional cities by early 2019
Starting on path to nationwide mobile 5G
Reliability:
The Best Network according to the nation’s largest test2
Nearly 50% increase in spectrum deployed by end of 2019 vs 2016
Strong performance during recent storms
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We plan for our 5G Evolution to be in more than 400 markets by the end of this year with nationwide coverage by mid-2019. Customers are seeing a dramatic lift in speeds with theoretical peak speeds reaching 400 megabits per second.
We also plan to launch LTE Licensed Assisted Access, or LTE-LAA, in parts of 24 cities by the end of the year. These are the building blocks towards the transition to 5G and can deliver speeds substantially faster than traditional LTE.
SDN, Virtualization, Spectrum, etc:
We’re also the leader in software defined networking (SDN) and are on track with our virtualization goals. This virtualization is bringing baseband units to the edge of the cloud or core and is going to be key for ultra-low latency that’s in 5G.
Thanks in part to our FirstNet build, our wireless spectrum is being put into service at a rapid rate. We’re on track to increase the amount of spectrum deployed by nearly 50%.
This is having a dramatic positive impact on our network, and others are noticing. We’ve been named the nation’s best network by a September GWS OneScore study, which is the largest and most comprehensive network study of its kind. Our network already is a recognized leader, and we’re taking steps to make it even better.
Video Business:
Moving to the video business. We continue to navigate industry pressure. We have plans to bring EBITDA stability back to our Entertainment Group. Allow me to elaborate on that.
First, we’re refining our four video products, tailoring them to customer needs. Our mobility-focused WatchTV is gaining traction. DIRECTV NOW is being updated to increase its simplicity and further differentiate the service. And our premium DIRECTV and U-verse services focus on the traditional linear TV viewers.
We’ve also begun beta testing our proprietary thin client streaming service (unnamed but said to be built around HBO) and plan to roll out trials in the first half of next year. This will be a more measured roll out. And like our introduction of WatchTV, we expect this service to be EBITDA positive. And over time, it should lower our acquisition cost of our premium video service. And both of these use the common platform we introduced with DIRECTV NOW.
If you look at linear TV, it’s really going to be about broadband and how do we use broadband to lead ourselves into premium TV. And then get an OTT package that’s well-suited to the people that are going to be the heavily engaged users.
If you look at the industry’s rate of decline on linear video, you find that we’re doing dramatically better than the industry where we have fiber footprint. We’re doing dramatically better than the industry in churn and acquisition where we have 25 meg and greater. Where our stress is is in the linear, in areas where we’re priced with just the linear video. And we’re going to have to take actions to continue to improve how we’re doing there.
Our fiber footprint build has given us a lot of inventory to sell into. With the fiber inventory that we’ve got coming online back half of this year, first part of next year, we have a lot of footprint to sell into. And within the quarter, not only do we have broadband ARPU growth, each month of the quarter got stronger. So we feel very good about where the broadband footprint is, in particular the fiber area. And that will help us with the video business, especially the linear video business.
But with the fiber inventory that we’ve got coming online back half of this year, first part of next year, we have a lot of footprint to sell into. And within the quarter, not only do we have broadband ARPU growth, each month of the quarter got stronger. So we feel very good about where the broadband footprint is, in particular the fiber area. And that will help us with the video business, the linear video business.
AT&T CEO Randall Stephenson aded: “And as we’re nearing completion of our fiber build and making pricing moves on video, we’re laying the foundation for stabilizing our Entertainment Group profitability in 2019. Across the business, I like our momentum and feel confident that we’re on track to deliver on our plans.”
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CFO John Stephens on CAPEX and Free Cash Flow:
We continue to expect our capital spending in the $22 billion range this year but we don’t expect as much vendor financing in the fourth quarter as before. So now we expect to be in the $24 billion range in gross capital investment for the year. We’re feeling really good about our free cash flow position heading into the fourth quarter. We expect $1.3 billion of FirstNet reimbursements in the fourth quarter since we received the FirstNet authorities’ approval for the latest contract milestone achievement.
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Earnings Call Transcript:
https://seekingalpha.com/article/4213893-t-t-q3-2018-results-earnings-call-transcript?part=single
Slide Presentation:
2Q-2018 AT&T Communications report by John Donovan:
2Q-2018 Status & Direction of AT&T Communications, by CEO John Donovan
AT&T Fiber Now Reaches 2 Million Business Customer Locations
https://about.att.com/story/2018/fiber_for_business.html
ITU-R’s Role in Radio Frequency Spectrum for 5G Networks of the Future
Editor’s Note: This is an edited version of an ITU blog post titled “ITU’s approach to 5G” which can be read here. Many Editor’s Notes have been added for clarification and additional details.
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Introduction:
When ready for deployment, 5G networks are expected to deliver more speed and capacity to support massive machine-to-machine communications and to provide low-latency, high-reliability service for time-critical applications. With such ambitious goals, 5G networks face considerable operational challenges such as meeting higher levels of stability, security and reliability.
5G networks aim to demonstrate high performance in different scenarios such as dense urban areas, indoor hotspots and rural areas. A number of countries have started trials for pre-standard 5G and the results are under assessment, with many companies successfully completing specific limited trials.
Like previous mobile broadband generations, 5G networks will use the radio-frequency spectrum. The radio-frequency spectrum is divided into frequency bands, allocated to radio communication services in such a way that each band may be used only by services which can co-exist with each other.
The increased traffic and speed required for 5G will necessitate much more spectrally efficient technologies, as well as a lot of additional spectrum, beyond what is currently used by 3G and 4G. Most of it will come from frequency bands above 24 GHz, which pose considerable challenges in terms of radiowave propagation and are also used by a number of radio communication services, notably for satellite communications, weather forecasting and monitoring of Earth resources and climate change.
To avoid interference between 5G and these services and thus ensure a viable mobile ecosystem for the future—and to reduce prices through the global market’s economies of scale and enable interoperability and roaming–national and international regulations need to be adopted and applied globally in these bands. The additional spectrum to be used by 5G therefore needs to be identified and harmonized at a global level. For the same reason, the radio technologies used in 5G devices need to be supported by globally harmonized standards.
ITU plays a key role in the development and adoption of these global regulations and standards. ITU membership is working to ensure that 5G networks are secure, stable, reliable, interoperable, safe for human health and energy efficient, and that they operate without interference. ITU’s role in managing the globally harmonized radio-frequency spectrum and standards for 5G is a key enabler in the development and implementation of 5G. ITU’s Standardization Sector (ITU-T) is playing a convening role for the technologies and architectures of the wireline elements of 5G systems.
Spectrum is a limited natural resource which may be used to and from any point on the Earth and in Space. Because radio waves propagate irrespective of national borders, the use of a portion of the spectrum in one geographic area may affect the ability to use the same portion in other areas by causing harmful interference. Spectrum therefore needs to be managed at national and international levels.
ITU’s role, through its Radiocommunication Sector (ITU-R), is to ensure the rational, equitable, efficient and economic use of the radio-frequency spectrum by all radiocommunication services, including satellite services, in particular by avoiding and eliminating harmful interference. The global allocation of frequency bands by ITU allows all radiocommunication services to co-exist without interference.
For this purpose, the radio-frequency spectrum is divided into frequency bands which are allocated to radiocommunication services in such a way that each band may be used only by services which can co-exist with each other. These allocations and the procedures ensuring the international recognition and protection from interference of spectrum uses in each country and in Space are contained in the ITU Radio Regulations (RR). The RR is an international treaty ratified and applied by all ITU Member States. It has been in force since 1906 and is updated every four years by the ITU World Radiocommunication Conferences (WRCs) to take into account the evolution of technologies and spectrum uses.
Every satellite, every aircraft, or ship, every television or radio station, every mobile device, every defence, air traffic or maritime radar, uses a certain frequency band as prescribed by the Radio Regulations (RR).
The global allocation of frequency bands by ITU allows all radiocommunication services to co-exist without interference. It gives all stakeholders, including those involved in 5G development, the certainty that these bands will be available for use and protected in all countries in the foreseeable future. In other words, it provides certainty for long-term investments, which is the basis for the sustainable development of the ecosystem.
In addition to reducing interference, the benefits of harmonized spectrum include facilitating economies of scale, helping build markets, enabling global roaming and reducing the cost and complexity of equipment design.
As part of the four-year process of studies and preparations for the ITU World Radiocommunication Conference 2019 (WRC-19), global stakeholders are working towards building consensus to allocate and identify additional spectrum for International Mobile Telecommunications (IMT – the generic term used by ITU to designate 2G, 3G, 4G, 5G and future generations of mobile broadband services) during that conference.
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Editor’s Note: Spectrum Allocation and Channeling Options:
While spectrum allocations are defined in the RR, which has the authority of being an international treaty, the various channeling options and their resulting “bands” are considered mainly by the ITU-R Study Groups, (in this case ITU-R Study Group 5), and the results are issued as ITU Recommendations. Such Recommendations or standards are not compulsory, however, as they are developed with the participation of all sectors of the industry and approved by ITU Member States, they play a key role in determining which channel arrangements are adopted in a given region or country. ITU strives to achieve worldwide harmonization of these channel arrangements, to the universal benefit of industry and users, but in some cases this goal is not able to be fully realized.
The ITU World Radiocommunication Conference 2019 (WRC-19) to be held in Sharm el-Sheikh from 28 October to 22 November 2019 is expected to further allocate and identify spectrum for IMT. See Editor’s Note on IMT 2020 Frequency Bands below.
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Like previous generations, 5G networks will generate electromagnetic fields. Exposure of the public to these fields is subject to international and national regulations. The World Health Organization (WHO) sets the recommended limits. ITU collaborates with WHO to provide guidance and recommendations regarding the monitoring and compliance of radio installations with these limits.
ITU has a rich history in the development of global standards for mobile communications. The framework of standards for international mobile telecommunications (IMT) spans 3G and 4G industry perspectives and will continue to evolve as 5G with IMT-2020.
In early 2012, ITU initiated the development of “IMT for 2020 and beyond”, setting the stage for 5G research activities and establishing the requirements and vision for 5G. Under ITU’s IMT-2020 programme, ITU membership is developing the international standards to achieve well-performing 5G networks.
IMT 2020 Deployments:
The first full-scale commercial deployments for 5G are expected shortly after IMT-2020 specifications are finalized at the end of 2020. Regulators around the world are already auctioning licenses to operate 5G networks in the frequency bands allocated by ITU and identified or expected to be identified for IMT.
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Editor’s Note on IMT 2020 Frequency Bands:
Frequency arrangements for frequency bands identified before WRC-15 are incorporated in Recommendation ITU-R M.1036-5. Work on frequency arrangements for the frequency bands that were identified by WRC-15 is currently ongoing in ITU-R.
Recommendation ITU-R M.2083 indicates a need of higher frequency bands to support the different usage scenarios with a requirement of several hundred MHz up to at least 1 GHz bandwidth corresponding wider and contiguous spectrum ability. Further, the development of IMT‑2020 is expected to enable new use cases and applications associated with radio traffic growth.
What frequency bands are under study for the implementation of IMT 2020 (5G)?
The following bands, which are already allocated to mobile, will be studied with a view to an IMT-2020 (5G) identification:
• 24.25 – 27.5 GHz • 37 – 40.5 GHz
• 42.5 – 43.5 GHz • 45.5 – 47 GHz
• 47.2 – 50.2 GHz • 50.4 – 52.6 GHz
• 66 – 76 GHz • 81 – 86 GHz
The following bands will also be studied, although they do not currently have global mobile allocations:
• 31.8 – 33.4 GHz
• 40.5 – 42.5 GHz
• 47 – 47.2 GHz
The results of the studies will be submitted for decision to the next ITU World Radio Conference (WRC-19), to be held from 28 October to 22 November 2019 in Sharm el-Sheikh, Egypt.
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The bandwidth capability of the IMT 2020 RIT/SRIT is defined for the purpose of IMT–2020 evaluation. The requirement for bandwidth is at least 100 MHz. The RIT/SRIT shall support bandwidths up to 1 GHz for operation in higher frequency bands (e.g. above 6 GHz).
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The Path Forward for ITU:
ITU standards (officially called “recommendations”) are supporting networking innovations such as software-defined networking, network virtualization, information-centric networking and advanced fronthaul and backhaul. These innovations will play a key role in making 5G networks faster, smarter and more cost-effective. These ITU standards are also enabling telecommunication companies to provide innovative services as they adapt to shifting customer needs in an era of great change. These standards for software-driven networking innovation are expected to achieve their full potential in the 5G environment.
This standard-setting process unites governments, regulators, mobile operators, manufacturers, industry organizations, academia and other standardization bodies from around the world, to support the development of 5G applications in the areas of network reliability and stability, cybersecurity, data privacy, the analysis of Big Data, energy efficiency and Artificial Intelligence to enhance the efficiency of 5G networks.
ITU’s adoption of the IMT-2020 standards will provide investors in 5G networks with the assurance that these standards will be applied universally, bringing economies of scale, and thus demonstrating the benefits of global harmonization.
Editor’s Comment:
We certainly hope this will happen, but with so many wireless telcos deploying pre IMT 2020 standard 5G networks this goal will be very difficult to realize.
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References:
https://www.itu.int/dms_pub/itu-r/opb/rep/R-REP-M.2410-2017-PDF-E.pdf
https://www.itu.int/en/ITU-R/Documents/ITU-R-FAQ-IMT.pdf
Relevant links
- ITU towards “IMT for 2020 and beyond”
- IMT Vision – Framework and overall objectives of the future development of IMT for 2020 and beyond
- Working Party 5D, IMT-2020 Background
- ITU World Radiocommunication Conferences
- 5G Basics
- Setting the Scene for 5G: Opportunities & Challenges
- ITU News Magazine on 5G
- ITU standardization work on Artificial Intelligence and 5G
- ITU activities on electromagnetic fields
- ITU flyer on electromagnetic fields
- ITU News blog on standards for IMT-2020
- ITU News blog on 5G security
- ITU News blog on the ITU’s work in 5G
- ITU News blog on energy efficiency and 5G
- WHO factsheet on electromagnetic fields and public health
Deutsche Telekom and SK Telecom Sign Strategic Cross-Investment Agreement in MobiledgeX and ID Quantique
Going forward, SK Telecom and Deutsche Telekom plan to share their technologies and knowhow. The two companies made their cross-investment decision to gain leadership in the upcoming era of 5G by offering specialized 5G services with ultra-low latency in areas like telemedicine as well as AR and VR, while addressing potential security threats.
“SK Telecom is pleased to enter into a cross-investment agreement with Deutsche Telekom as it will serve as a valuable opportunity for us to further solidify our 5G leadership in the global market and drive new growth,” said Park Jung-ho, President and Chief Executive Officer of SK Telecom.
“We look forward to intensifying our successful cooperation with SK Telecom. The partnership will help both companies to strengthen our global technology leadership and bring 5G and other innovative services to our customers,” stated Timotheus Höttges, CEO of Deutsche Telekom.
Unlike the pre-5G era, which was mainly about communication between people, the 5G era will be marked by communication between people and things, as well as communication between things (IoT), which will support intelligent services like connected car, smart factory and wearable devices.
Earlier this month, the German carrier said it expects to launch commercial 5G services in 2020. In May 2018, Deutsche Telekom announced the deployment of the first 5G antennas to test the technology in downtown Berlin. The antennas, which are based on 5G New Radio, allowed Deutsche Telekom to demonstrate what it claimed to be Europe’s first 5G data connection over a live network. The telco said that it is currently in the process of deploying a 5G cluster in Berlin.
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Separately, Deutsche Telekom is reviewing the idea of adopting quantum cryptography communication systems. Both SK Telecom and Deutsche Telekom are currently in the process of qualifying quantum cryptography technologies on their respective trial networks.
Deutsche Telekom will make an investment in ID Quantique, a Switzerland-based strategic partner of SKT. The start-up is focused on the development of quantum cryptography communication technology, an innovation designed to increase the security of telecoms services. ID Quantique’s applications are already being tested in trial networks deployed by both Deutsche Telekom and SKT.
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Note that in February 2016, Deutsche Telekom and SK Telecom entered into a strategic business partnership agreement to collaborate in the fields of services, Internet of Things (IoT) and related R&D areas. With the aim to strengthen their capabilities as ICT industry leaders and to achieve new growth through joint business opportunities in Asian and European Markets, SK Telecom and Deutsche Telekom will cooperate in the global sales of innovative solutions and products and work together to lead standardization of innovative technologies, including 5G enabling technologies and SDDC (Software-Defined Data Center).
Under the 2016 partnership agreement, the two companies will pursue joint R&D activities to develop cutting-edge technologies – including 5G enabling technologies – and push for their standardization (where – in ITU-R WP5D for IMT 2020?), while actively taking a part in diverse global projects to drive ICT infrastructure innovations.
In particular, through development of key 5G technologies such as network slicing and mobile edge computing, the two companies plan to drive standardization and implementation of 5G, and identify 5G key applications.
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References:
IHS Markit: Data Center Interconnect (DCI) is Fastest-growing Application for Optical Networking
A significant driver for innovation in the optical market, data center interconnect (DCI) is the fastest-growing application for optical networking equipment, according to a new study from business information provider IHS Markit. Eighty-six percent of service providers polled for the Optical Network Applications Survey have plans to support DCI applications in their networks.
“Data center interconnect is enjoying a meteoric rise as the hottest segment in the optical networking applications space,” said Heidi Adams, senior research director for transport networks at IHS Markit. “Service providers are becoming increasingly invested in the DCI market, both for providing interconnect between their own data centers and for offering DCI services to internet content providers and enterprises. We estimate that service providers will account for around half of all DCI equipment spending in 2018.”
The optical data center equipment market reached $1.4 billion in sales in the first half of 2018, posting 19 percent year-over-year growth, according to IHS Markit. A key driver of the market is the compact DCI sub segment, which notched a 173 percent growth rate during this same time period.
“‘Compact’ DCI equipment is designed to fit within a data center environment from the form factor, power consumption and operational perspectives,” Adams said. “It’s optimized to meet the requirements of internet content providers like Google, AWS, Facebook, Microsoft and Apple.”
The top three vendors in the compact DCI sub segment are Ciena, Infinera and Cisco, who collectively account for three-quarters of the market.
Additional DCI highlights
- Cost per port is the leading criterion among survey respondents for the selection of equipment for DCI applications.
- 100G is the main currency for line-side DCI interfaces in 2018, declining in favor of 400G by 2021.
- IHS Markit forecasts the total DCI market to grow at a 15 percent compound annual growth rate (CAGR) from 2017 to 2022, representing a higher rate of growth than the overall WDM market.
Optical Network Applications Service Provider Survey – 2018
This survey analyzes the trends and assesses the needs of service providers using emerging optical networking architectures. It covers data center interconnect, packet-optical equipment and software-defined networking for transport networks. For the survey, IHS Markit interviewed 22 service providers who have deployed packet-optical transport, optical DCI and/or transport SDNs or will do so in the future.
DCI, Packet-Optical & OTN Equipment Market Tracker
This biannual report provides worldwide and regional vendor market share, market size, forecasts through 2022, analysis and trends for data center interconnect equipment, packet-optical transport systems, and OTN transport and switching hardware.
Reference:
https://www.ciena.com/insights/what-is/What-is-DCI.html
Comcast claim: #1 Gigabit Service Provider in the U.S. but what about “5G” BWA?
Comcast says its Xfinity Gigabit Internet and Comcast Business Gigabit services are now available to nearly all of the 58 million homes and businesses the company’s infrastructure passes in 39 states and the District of Columbia (it’s not available in Santa Clara, CA where top downstream speed is 400M bits/sec). That makes the cable MSO the largest provider of gigabit Internet service in the U.S. based on the number of potential homes passed.
Gigabit Internet service is a residential XFINITY Internet service that delivers download speeds of up to 1 Gbps and upload speeds of up to 35 Mbps to customer homes via Comcast’s next technology DOCSIS 3.1 Hybrid Fiber-Coax (HFC) network. Gigabit Pro is a newer ultra-fast tier delivered via a fiber-to-the-home solution and offers symmetrical upload/download speeds of up to 2 Gbps.
Comcast notes it has increased speeds 17 times in the last 17 years and that the capacity of its broadband network has doubled every 18-24 months. The company uses Xfinity xFi to give customers control over their internet; xFi is a digital dashboard that allows users to personalize, monitor, and manage WiFi connected devices inside the home or business.
“Comcast continues to offer an unmatched Internet experience that combines gigabit speeds with wall-to-wall WiFi, personalized tools and controls, and enough capacity to stay ahead of tomorrow’s innovations,” said Dana Strong, president of Consumer Services, Comcast. “We’ve built an innovative high-speed data platform that combines speed, coverage and control features and really sets our broadband experience apart from the competition.”
“One of the ways that we compete, of course, is ensuring that we’ve got the fastest and the most reliable network,” Matt Strauss, executive vice president of Xfinity Services at Comcast, told Fortune. “What’s partly behind the announcement is reinforcing that now we have one gig deployed across our entire footprint.”
Comcast started deploying gigabit service in earnest about three years ago. The company, which has 24.4 million total home broadband customers, wouldn’t say how many people have signed up so far, disclosing only that 75% of all its customers now receive speeds of 100 megabits/sec or higher.
However, a Morgan Stanley survey released on Thursday said that only a tiny fraction of U.S. households—3% of cable Internet customers nationwide—have 1 gigabit/sec speeds or higher.
But 1 GB speeds may gain in popularity in the future. While a typical high-definition movie file is about 3 GB or 4 GB, a growing number of movies are available in 4K, for which files sizes can exceed 100 GB.
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The top two U.S. fixed line telecom carriers Verizon and AT&T are just starting to introduce competing home Internet services with new “5G” (proprietary) fixed broadband wireless access (BWA) technology. Those “5G” BWA services are 10 to 40 times faster than current 4G LTE wireless networks, which are generally NOT used for BWA. Those two mega carriers along with Comcast are ranked among the best ISPs.
Google Fiber may not be too far behind in it’s use of fixed BWA technology to deliver triple play residential services. Alphabet, Google’s parent company, has put Google Fiber projects on hold in San Jose, Portland, and California. Google states that the move to wireless is inevitable, it will not neglect existing markets and will continue signing up new customers with wireless instead of fiber. Plans are underway to provide cities such as Dallas, Los Angeles, and Chicago with wireless internet service. Wireless technology is less expensive as it does not require labor-intensive constructions, the issues with the telephone owners, current copper and fiber providers and much cheaper to roll out.
In October 2016, Google bought Webpass, a company that specializes in the provision of wireless internet that at speeds of 1GBps at around $60. Webpass uses antennas on a building’s rooftops to provide internet connections to both businesses and residences. Unlike in conventional ISPs where you would need to have a modem, with Webpass you only need to have a router where you can plug in an Ethernet cable and distribute the internet to your office or residence.
http://fortune.com/2018/10/18/comcast-declares-victory-in-gigabit-home-internet-race/
https://hothardware.com/news/comcast-gigabit-internet-rollout
https://medium.com/@artiedarrell/fiber-no-more-google-fiber-is-switching-to-wireless-57e871ee8bc4
https://www.reviews.org/internet-service/best-internet-service-providers/
http://www.thurstontalk.com/2018/10/22/comcast-now-nations-largest-provider-of-gigabit-internet/
Reliance Jio may overtake Vodafone Idea & Airtel to become India’s largest telecom firm by 2018 year end
According to Livemint, Reliance Jio may soon emerge as the leading wireless telecom company in India. Reliance Jio’s net revenue may have crossed Bharti Airtel Ltd’s wireless revenue in India last quarter, according to analysts at Kotak Institutional Equities Research. If the Reliance Industries Ltd (RIL) unit maintains the momentum, then it may emerge as the largest telecom company as early as the end of 2018.
“We expect Bharti Airtel’s net India wireless revenues (reported gross wireless revenues less estimated gross interconnect revenues) to be around ₹87-88 billion for 2QFY19. Reliance Jio’s reported revenues of ₹92.4 billion are net of interconnect revenues as the company adjusts interconnect revenues in the interconnect costs line,” analysts at Kotak Institutional Equities Research said in a note.
“If Bharti does not report a material beat on our estimated wireless revenues for the quarter, Reliance Jio has perhaps crossed Bharti on net India wireless revenues to become #2 after Vodafone Idea. If the current trends continue, Reliance Jio will likely become #1 on net revenues as early as 3QFY19E,” the note said.
Reliance Jio’s focus remains on expanding its subscriber base but the ban on Aadhaar-based e-KYC can affect this. This, however, is seen as a temporary phenomenon. The trends indicate continued tough times for incumbent telecom companies which have to step-up capital expenditure (capex) while dealing with price erosion.
“We expect competitive intensity to remain elevated over the next 9-12 months as fight for subscriber share continues. Reliance Jio, over the weekend, introduced 100% cashback for all packages and various players have been tweaking with pricing and packs,” Jefferies India Pvt. Ltd said in a 19 October note. Further, the incumbents, given their weakened financial position, are lagging in capex, which is crucial for product offerings and customer retention.
“Reliance Jio continues to be on an accelerated capex drive, spending around ₹330 billion in H1FY19 (Q2 spend ₹160 billion) which is ~70% its own FY18 capex and is largely equivalent to the combined capex spend of the remaining two incumbents (Bharti Airtel, Vodafone Idea) put together in FY18,” SBICAP Securities Ltd said in a note. “The scale of investments and the current profitability differential suggest that Reliance Jio is unlikely to relent till it achieves a meaningful market leadership in terms of revenue market share.”
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In the second quarter of this fiscal year, Reliance Jio had a significant capex of around Rs 160 billion, although it was 6 per cent down from the previous quarter. Analysts expect the high capex to continue for another two quarters or so, post which the company would shift its focus to the broadband business.
The telecom operator is on track to achieve the 99 per cent of population coverage target within FY2019. Jio attributed the higher capex in the first half of FY19 to expanding mobility networks, which is in the last phase and will subside in the next one-two quarters.
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India consumers are rapidly upgrading to 4G feature phones, led by the JioPhone, that offer a much richer data and video experience, forcing plain handset makers to review their production plans.
CyberMedia Research (CMR) data shows that market share of 2G phones has plunged 17 percentage points in just six months to 30% in the quarter ended June, while Reliance Retail’s 4G variant, called JioPhone, increased its market share by 9 percentage points in the same period to 27%
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