Sort by:[Date]

AT&T Opens new Innovation Center/Foundry in Atlanta, GA (#4)

A&T's latest Innovation Center/Foundry -- its fourth in total -- has opened in Atlanta, GA.  This new Atlanta Foundry will focus on projects around Digital Life (AT&Ts home security and automation service), as well as U-verse, mobility and “connected car.” The Atlanta facility has nearly 8,000 square-feet of work space, and AT&T plans to use it all.
The Atlanta Foundry location has an open floor plan, enabling collaborative teams to rapidly form and regroup.  Results from the work by AT&T and its partner companies will be used to progress and improve AT&T's U-verse and Digital Life platforms as well as new applications
..................................................................................
At the June 12, 2013 IEEE ComSocSCV meeting, AT&T presented their Silicon Valley Foundry as well as other topics.  
Jacob Saperstein described the mission and purpose of AT&T's Palo Alto Foundry, how it relates to AT&T's Innovation Platform, and its role in the Silicon Valley ecosystem.    In addition to its Palo Alto facility, AT&T has Foundry locations in Richardson, TX and Ra'anana, Israel (and now Atlanta, GA).  At these three "Innovation Centers," AT&T  teams up with start-ups and leading edge companies to fast-track new apps, devices, software/hardware platforms and other areas of technology innovation. 
The referenced IEEE ComSocSCV-AT&T meeting abstract, speaker names and presentations can be downloaded from http://comsocscv.org/  by clicking on June 12, 2013 meeting

 
 
 
 

 
 

SDN to be a $3.52 billion market by 2018; Cyan's Blue Orbit for carrier based SDN and NFV applications

The software-defined networking (SDN) will be a $3.52 billion global market by 2018, according to Transparency Market Research. The market research firm’s new "Software Defined Networking (SDN) Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2012 - 2018" report predicts SDN spending worldwide will grow at a compound annual growth rate of 61.5% from 2012 to 2018.

http://www.transparencymarketresearch.com/software-defined-networking-sdn-market.html

The increasing need for efficient infrastructure and mobility, as well as the popularity of cloud services, will drive this growth, according to the report.  Transparency Market Research cites three main markets for SDN: enterprises, cloud services providers, and telecommunications services providers. Enterprises represented 35% of the SDN market in 2012. However, cloud service providers are expected to be the fastest growing market segment throughout the years the report covers. Transparency Research says that SDN’s ability to reduce opex and capex while enabling the delivery of new services will spearhead its use by cloud service providers.

Cloud provisioning and orchestration products currently dominate the global SDN market, the report states. SDN switching held the second largest revenue share of the SDN market in 2012. SDN products and applications also will be used to design, optimize, secure, and monitor the network, the market research firm predicts.  The report segments the global SDN market into users, products (including SDN switching, SDN controllers, cloud provisioning and orchestration, and others such as security and services), and region.

North America currently is the largest market for SDN technology, thanks to a high degree of standardization and favorable regulatory initiatives. Not surprisingly, Asia Pacific is expected to be the fastest growing region during forecast period, fueled by the increasing adoption of BYOD practices in China, India, and Australia.

In this early stage, the SDN industry is fragmented, the report asserts. Multiple players have moved to address different categories including hardware providers, software developers, and service providers. Transparency Research names Cisco, IBM, NEC, Juniper Networks, Alcatel-Lucent, VMware, HP, Google, Big Switch Networks, Arista Networks, Brocade Communications Systems, Verizon Communications, and Intel among the primary players.

Comment:  We think that the term "SDN" includes both ONF standards based (e.g. Open Flow) and vendor specific (e.g. Arista Networks) open networking solutions.   We wonder how large the SDN standards based market wii be.

...............................................................................................................................................................................

Cyan Inc, a leading provider of software-defined networking (SDN) and packet-optical solutions for network operators, today announced that Pica8, Inc. has joined Blue Orbit, an ecosystem of partners focused on proving real-world, multi-vendor, software-defined network (SDN) and network functions virtualization (NFV) applications. 

“The addition of Pica8 to the Blue Orbit Ecosystem demonstrates the supplier community’s desire to come together and push interoperability testing and real deployments forward,” said Joe Cumello, chief marketing officer at Cyan. “As Blue Orbit continues to grow, we are gaining invaluable insight into how we can help network operators such as carriers, data center operators and cloud companies slash OpEx, launch new services, and deliver a better customer experience.”

In June 2013, Blue Orbit was formed to demonstrate interoperability among SDN and NFV solutions from an array of partners to lessen the risk network operators would otherwise face and accelerate the deployment of production SDN and NFV use cases. Blue Orbit partners provide applicable solution elements to Cyan’s California-based Blue Orbit Lab. From this facility, Cyan, Blue Orbit partners, and customers are able to test and demonstrate the deployability of SDN solutions.

http://www.cyaninc.com/en/keep-up/press-releases/2013/pica8-joins-cyan/



 

Global Carrier Router/Switch market up 27% in 2Q13 thanks to Asia Pacific region

Introduction:

Infonetics Research released vendor market share and preliminary analysis from its 2nd quarter 2013 (2Q13) Service Provider Routers and Switches report.


2Q13 CARRIER ROUTER AND SWITCH MARKET HIGHLIGHTS:
 •Globally, service provider router and switch revenue is up 27% in 2Q13 from 1Q13, to $4 billion, showing that service providers are ready to spend after holding back in the previous quarter
•In the overall carrier router and switch market, Huawei gained 4 market share points in 2Q13, rising back into the #2 spot behind leader Cisco
•IP edge (edge routers and carrier Ethernet switches) revenue grew 30% sequentially in 2Q13, attributable in part to an uptick in the move to 100GE on routers and 100G in optical transport
◦Meanwhile, core routers grew the slowest quarter-over-quarter
•Alcatel-Lucent, Cisco, Huawei and Juniper together account for about 90% of total router (edge and core) revenue in 2Q13
•Over the past 2 years (4-quarter rolling average), Huawei gained the most edge and core router market share points of any vendor, up 5.6 points

 

Analyst Commentary:

“The 2nd quarter is usually up for carrier routers and switches, but this one is exceptional given the sluggishness of the past few years. Every major geographical region except Japan notched double-digit sequential growth and, more important, gained from the year-ago quarter,” reports Michael Howard, principal analyst for carrier networks and co-founder of Infonetics Research.   “In Asia Pacific, carrier router and switch revenue jumped 45% from the previous quarter thanks in large part to Huawei’s and ZTE’s stellar performance,” Howard adds. “And even recent laggard Europe/EMEA gained nicely, possibly signaling a pitch forward.”


REPORT SYNOPSIS:
 
Infonetics’ quarterly router and switch report provides worldwide, regional, China, and Japan market share, market size, forecasts through 2017 and analysis for IP edge and core routers, carrier Ethernet switches, and the IP edge market by application. Vendors tracked: Alaxala, Alcatel-Lucent, Brocade, Ciena, Cisco, Ericsson, Fujitsu, Hitachi, Huawei, Juniper, NEC, Tellabs, ZTE, others.

To buy the report, contact Infonetics:

http://www.infonetics.com/contact.asp

VoLTE in N America Boosts Carrier VoIP/IMS market by 30% in 2Q13

Infonetics Research released vendor market share, forecasts and preliminary analysis from its 2nd quarter 2013 (2Q13) Service Provider VoIP and IMS Equipment and Subscribers report. (Full report will be published August 29th)


2Q13 CARRIER VOIP/IMS MARKET HIGHLIGHTS:
 •Typically a strong quarter, in 2Q13 the global service provider VoIP and IMS equipment market grew 30% sequentially, to $936 million
•All major geographical regions – North America, EMEA (Europe, Middle East, Africa), Asia Pacific and Latin America – posted year-over-year and quarter-over-quarter gains in 2Q13
•North America continues to be positively impacted by LTE-related activity, growing 78% year-over-year in 2Q13
•The standout vendors in 2Q13 in terms of sequential revenue growth are Alcatel-Lucent, BroadSoft, Genband, Huawei and Sonus
•Meanwhile, Huawei, Alcatel-Lucent and Genband remain atop the VoIP and IMS market share leaderboard

.........................................................................................

“IMS equipment has officially moved into an LTE and voice-over-LTE world, and there’s no going back now,” notes Diane Myers, principal analyst for VoIP, UC and IMS at Infonetics Research. “In the second quarter we saw this impact spending on session border controllers and IMS core equipment for VoLTE access and interconnection (LTE to 3G) buildouts.”


Myers adds: “Though LTE- and VoLTE-related equipment sales are growing, the market will continue to be lumpy from quarter to quarter.”

..........................................................................................


VOIP AND IMS REPORT SYNOPSIS:
 
Infonetics’ quarterly carrier VoIP and IMS report provides worldwide and regional market share, market size, forecasts through 2017, analysis, and trends for trunk media gateways, SBCs, media servers, softswitches, voice application servers, HSS, CSCF, BGCF, MGCF, IM/presence application servers, and subscribers. Vendors tracked: Acme Packet, Alcatel-Lucent, BroadSoft, Ericsson, Genband, Huawei, Metaswitch, NSN, Radisys, Sonus, ZTE and others.

To buy the reports, contact Infonetics: http://www.infonetics.com/contact.asp

.............................................................................................

From IBIS World:

"Voice over Internet Protocol (VoIP) experienced massive growth at the start of the past five-year period, though residential customer growth has since flattened out. Regulations and the dominance of companies like Google threaten the industry, but the expansion of mobile broadband networks will open up new avenues for growth. Cable companies able to bundle VoIP service with cable service will fare best in consumer markets in the coming five years, while businesses will slowly but surely turn to VoIP for voice needs..."

http://www.ibisworld.com/industry/default.aspx?indid=1269

Infonetics: Top 3 Optical Nework Equipment leaders are Huawei, Alcatel-Lucent & ZTE

Infonetics Research released vendor market share and preliminary analysis from its 2nd quarter 2013 (2Q13) Optical Network Hardware report. (Full report will be published August 23.)

 

2Q13 OPTICAL MARKET HIGHLIGHTS

 

  • The global optical network hardware market, including WDM and SONET/SDH equipment, totaled $3.3 billion in 2Q13
  • EMEA (Europe, Middle East, Africa) is operating at record low levels of optical capital intensity; positive capex rumbles from tier 1 carriers have yet to translate into more optical spending
  • The top 3 optical market share leaders in 2Q13 are, in rank order, Huawei, Alcatel-Lucent and ZTE
  • Alcatel-Lucent continues to decline on a year-over-year basis, though optical investment is set to increase in 2013 as part of its SHIFT Plan to double down on optical and routing
  • Ciena is well positioned to capture the torrent of 100G spending expected this year from AT&T and Verizon
  • Infinera is the fastest-growing supplier of optical WDM gear in Europe
 
ANALYST NOTE:
“We expected the optical hardware market to turn, particularly in North America, and that’s exactly what happened in the 2nd quarter. Total optical spending is up 27% quarter-over-quarter, and the WDM equipment segment is up 21% year-over-year,” notes Andrew Schmitt, principal analyst for optical at Infonetics Research.
“WDM spending accelerated dramatically in North America as a result of 100G deployments hitting the ground, and worldwide spending on 100G speeds is tracking close to 15% of all optical spending,” Schmitt adds. “China’s 100G deployments will begin in earnest as the year closes, led by China Mobile, and we’re anticipating more than 5,000 ports of 100G in China alone in 2013.”

OPTICAL CONFERENCE CALL
Clients, join Andrew Schmitt August 29 at noon ET for a live optical hardware market recap and outlook. Log in for password: www.infonetics.com/cgp/login.asp?id=714.

OTN WEBINAR
Join Andrew Schmitt Sept. 17 for The OTN Expansion: The Next Carrier Upgrade Cycle, a live event: http://w.on24.com/r.htm?e=658460&s=1&k=86531EAC4194B7C2D3149D6EA6B3BBD6

ABOUT THE OPTICAL REPORT
Infonetics’ quarterly optical hardware report provides worldwide and regional market size, market share, forecasts through 2017, analysis, and trends for metro and long haul SONET/SDH and WDM equipment, Ethernet optical ports, SONET/SDH/POS ports and WDM ports. Vendors tracked: Adtran, Adva, Alcatel-Lucent, Ciena, Cisco, Cyan, ECI Telecom, Fujitsu, Huawei, Infinera, NEC, Coriant (NSN), Tellabs, Transmode, ZTE and others. To buy the report, contact Infonetics: http://www.infonetics.com/contact.asp.
 
LATEST OPTICAL RESEARCH
 
UPCOMING OPTICAL RESEARCH
Download Infonetics' market research brochure, publication calendar, events brochure, report highlights, tables of contents, and more at http://www.infonetics.com/login.

INFONETICS OPTICAL WEBINARS
Visit https://www.infonetics.com/infonetics-events to register for upcoming webinars, view recent webinars on-demand or learn about sponsoring a webinar.

============================================================

Global Optical Transport Network (OTN) Equipment Industry
http://www.reportlinker.com/p01518541/Global-Optical-Transport-Network-OTN-Equipment-Industry.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Network_Equipment

This report is quite expensive at $4500 per copy.  It analyzes the worldwide markets for Optical Transport Network (OTN) Equipment in US$ Million by the following Product Segments: OTN Transport Equipment, and OTN Switching Equipment. The report provides separate comprehensive analytics for the US, Canada, Europe, Asia-Pacific, Middle East, and Latin America. Annual estimates and forecasts are provided for the period 2009 through 2018. The report profiles 47 companies including many key and niche players such as ADTRAN Inc., ADVA Optical Networking SE, Alcatel-Lucent, Aliathon Technology Ltd., Ciena Corporation, Cisco Systems, Inc., ECI Telecom Ltd., Ericsson, Fujitsu Limited, Huawei Technologies, Infinera Corporation, JDS Uniphase Corporation, NEC Corporation, Tellabs, Inc., and ZTE Corporation. Market data and analytics are derived from primary and secondary research. Company profiles are primarily based on public domain information including company URLs.

Huawei Closing in on Cisco's Dominance of Enterprise Networking Market + Infonetics Scorecard Ranks Other Vendors

Huawei Technologies Ltd (China) expects 40% growth in its enterprise-network business revenue this year to about $2.7 billion.  By 2017, the company aims to increase the segment’s revenue to more than $10 billion.  That's a very steep climb from 2012, when Huawei enterprise-network equipment business generated $1.9 billion in revenue, which was only 5% of Huawei's total revenue.

By contrast, 73% of the company’s revenue came from its telecom-gear business, while its mobile-handset business accounted for about 22%.   

Huawei sees opportunities in enterprise-network equipment because the market is going through major changes, with more companies adopting cloud computing and bring-your-own-device policies. Potential growth is greater than the telecom network market, said William Xu, a Huawei senior executive in charge of the enterprise-network business.  

Huawei’s enterprise-network business currently generates roughly half of its revenue outside China, and its strong overseas markets are in Europe, Latin America and Asia.   Huawei is spending $600 million this year on research and development for its enterprise network equipment, up from $500 million.

Read more at: http://infotechlead.com/2013/08/08/huawei-enterprise-network-biz-revenue-to-grow-40-to-2-7-billion-in-2013/  

..........................................................

Scott Thompson of FBR on Huawei threat to Cisco:  While Huawei Technologies Co., Ltd. has been unable to gain a
foothold in North America (due to the impact of the attached stigma from the stance of the U.S. House Subcommittee on
Cybersecurity), without the EU taking a firm stand with the U.S., we expect Cisco has more revenue at risk in China than Huawei has in the U.S."

............................................................................................

Excerpts follow from Infonetics' Enterprise Networking and Communication Vendor Leadership Scorecard, which profiles and ranks the top 8 vendors of enterprise networking, network security, and communication equipment/software: Alcatel-Lucent, Avaya, Brocade, Cisco, HP, Juniper, NEC and Siemens Enterprise.  Note that Huawei was not included in this vendor evaluation.

According to Infonetics Marketing Director Kim Peinado, the vendor rankings are based on actual data and metrics, including direct feedback from buyers, vendor market share, share momentum, financials and solution portfolio -- eliminating subjectivity.

Infonetics reports that Cisco has the highest score and leads the rest of the field by a wide margin, giving them an adequate cushion to bolster against future score fluctuations in multiple areas. Cisco has the broadest product portfolio, the highest market share, the strongest financials, and the strongest overall brand. Cisco’s key weakness is market share momentum due to a slight decline in market share in 2012.

ENTERPRISE SCORECARD HIGHLIGHTS:
.    Aside from #1 Cisco, for the most part vendor scores fall into a narrow range; a notable exception is financial stability, where there is significant variability in scores
.    Brocade strongly improved its ranking this year (tied with Juniper for 2nd place) due to improvements in financials, market share momentum and buyer perception
.    Juniper maintained its score from last year, as improvements in solution breadth and buyer perception were offset by weaker financials
.    HP ranks 2nd in 5 out of 7 criteria but slid into 4th place overall due to slowing market share momentum and weakening financials
.    The core business of the other 4 vendors analyzed in the report - Alcatel-Lucent, Avaya, NEC and Siemens Enterprise - revolves around the PBX market, which has been slow to recover from the recession, limiting their financial stability and growth prospects
.    That said, Alcatel-Lucent, Avaya and Siemens offer some of the most extensive product portfolios, and NEC's early work on software-defined networking (SDN) could raise its technology innovation scores next year

....................................................................

ANALYST QUOTES:

"More than 100 vendors are vying for a piece of the $50 billion enterprise networking and communication infrastructure market, but only 8 have a diverse product offering and consistently capture more than 1% market share," observes Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research and lead author of the report. "Our enterprise scorecard helps buyers make accurate comparisons among vendors based on commonly-used purchase criteria and identify which vendors are most suitable for their organization's specific requirements."

Machowinski  adds: "Cisco leads this field by a wide margin, claiming a perfect score in 6 out of the 7 criteria that we measure in our enterprise vendor scorecard. But the battle for 2nd place remains heavily contested, as witnessed by the tie this year between Brocade and Juniper."

..................................................................... 

ABOUT THE SCORECARD:

Infonetics' annual enterprise vendor scorecard evaluates the leading enterprise networking and communication equipment vendors using criteria that are commonly used by buyers to select vendors, demonstrate success in the marketplace, and position a vendor for success. The matrix rankings are based on 7 criteria including market share; market share momentum; financial stability; solution breadth; technology innovation; product reliability; and service and support. Companies ranked: Alcatel Lucent, Avaya, Brocade, Cisco, HP, Juniper, NEC and Siemens Enterprise.

A note on excluded vendors:

·        Huawei reported over $1.8B in total enterprise revenue last year but does not break out how much of that revenue comes from enterprise networking and communication infrastructure. Once Huawei starts providing revenue break-outs and meets the threshold for inclusion, we will add Huawei to future scorecards.

To buy the report, contact Infonetics: http://www.infonetics.com/contact.asp
......................................................................................
GET THE SCORECARD FREE:

Qualified businesses and service providers can download Infonetics' 2013 Enterprise Networking and Communication Vendor Leadership Scorecard - worth $500 - free of charge for a limited time at

http://www.infonetics.com/download.asp?id=36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

FBR: Analysis of Level 3 2Q13 Results; Revenue Outlook Remains Uncertain

David Dixon of FBR Capital Markets:

Level 3 Communications (http://www.level3.com/) reported weak 2Q13 earnings due to below-consensus consolidated EBITDA. Core revenues were line with consensus with growth weighted once again to Latin America and enterprise. While this was encouraging, we remain concerned that top-line trends are likely to remain weaker than expected, and the cost structure of the company may shift more than expected due to the change in the nature of content relationships which may drive a review of peering interconnections with end-user networks and the potential migration of customers to single integrated wireline/wireless providers.

While management continued to cite strong demand from enterprise customers, we reiterate our belief that this is largely for lower-margin "feeds and speeds" versus "higher-margin managed services." Growth is consistently coming at lower price points, as North American transport and related services are commoditized.

The Internet is changing; impact of software-defined networks (SDNs) is unclear. We expect significant increases in the long-haul network utilization of major carrier networks at dramatically lower opex costs. The simplification of routing protocols and a focus on source origination and destination of application flows could increase disintermediation risk for Level 3 Communications.

New acquisition on the horizon? The company has already captured much of the initial benefits from the Global Crossing acquisition as two-thirds of the $300 million in savings having already occurred in the first six quarters after the merger (ending in 1Q13). Management reemphasized that the company has just begun to see the advantages of improved operating leverage. However, this would require the unified migration of long-haul AND metro network systems, processes, and data, which has eluded Level 3 in past transactions.

While we do not foresee Level 3 as being acquired (i.e., by Sprint to enhance its network backhaul positioning), we
believe the company may be a quarter or two from its next acquisition, given the moderating organic outlook.

.....................................................................................................................................

References:

 

1.  Level 3 Reports Second Quarter 2013 Results

http://level3.mediaroom.com/2013-07-31-Level-3-Reports-Second-Quarter-2013-Results

2.  Level 3's 2Q2013 earnings call replay can be accessed by dialing 1 800-633-8284 (U.S. Domestic) or 1 402-977-9140 (International), conference code 21660691

Or register to hear it on line at:  http://www.media-server.com/m/p/e6feabzi

.............................................................................................................................

End Note:

 

Level 3 is one of the few competitive nationwide wireline carriers left in the U.S.  The others include Century Link (which includes x-RBOC U.S. West/Qwest), Frontier, TW Telecom, XO Communications, TDS Telecom, Cogent, Zayo, Reliance Telecom, Integra Telecom, and others. 

Some like Cogent and Level 3 mostly re-sell their telecom facilities to other carriers.  Zayo, Reliance and Integra are mostly Business Ethernet carriers.  TW Telecom and XO also are Ethernet providers, but in many locations do not own their own fiber and have to resell other carrier (e.g. AT&T) services.

 

 

Sprint to include Clearwire spectrum in new LTE roll-outs + Analysts turns cautious on Sprint

Sprint will incorporate spectrum from Clearwire's network in its Long-Term Evolution service across the country next year, the carrier disclosed Tuesday, adding that it expects all of its new smartphones to support 4G speeds.  Sprint executives declined to say whether those models will include the iPhone.

While Clearwire's frequencies occupy a different band than Sprint's other spectrum, the 2.5 GHz LTE base stations are designed to add capacity and boost service in dense, urban areas.

With the Clearwire acquisition, Sprint got access to an emerging Clearwire LTE network that it plans to use for extra mobile data capacity in densely populated areas. Though it uses a slightly different form of LTE than Sprint's and operates in a relatively short-range spectrum band, around 2.5GHz, the former Clearwire network could give the carrier a large amount of capacity to bolster services in cities.

The network had been intended for Sprint's use through the longstanding partnership between the two companies, but Sprint's takeover of Clearwire gave that plan a more solid foundation.

There were already about 2,000 Clearwire LTE sites completed when the buyout was completed earlier this month, said Steve Elfman, president of network operations and wholesale, on the conference call. He expects several thousand 2.5GHz LTE base stations on the air this year, with sites across the country next year, though not the full deployment of sites that will use the spectrum. The 2.5GHz radios don't have as long a range as Sprint's other gear, so they'll be deployed in a larger number of sites, he said.

Sprint plans eventually to operate LTE in three spectrum bands: Its own 1.9GHz band, the 800MHz frequencies from its defunct Nextel network, and the 2.5GHz spectrum. Earlier this month it introduced the first mobile device that will be able to use all those bands.

http://www.cio.com/article/737298/Sprint_promises_wide_rollout_and_device_support_for_ex_Clearwire_spectrum

===============================================

Analyst Opinion on Sprint: Waiting for Network Differentiation amid Heightened Competition, by David Dixon, FBR Capital Markets

 

Sprint reported mixed 2Q13 results, with better-than-expected revenue, offset by weaker-than-expected postpaid net adds and churn.  Consolidated revenues of $8.9B and wireless revenue of $8.1B were ahead of consensus.

Operating Income Before Depreciation And Amortization (OIBDA) of $1.42B was slightly above the Street; postpaid net losses of 1,045,000 fell short of the consensus estimate  of 914,000 net losses. Postpaid churn of 2.63% was up 83 bps annually and above the Street.

Sprint will continue to face customer churn pressures as it rolls out Network Vision. We believe Sprint is facing increasing
competitive pressure in the postpaid market, with Verizon and AT&T  encroaching from the high end and a resurgent T-Mobile US encroaching from below.
 
We expect T-Mobile to pressure both AT&T and Sprint in the prepaid and postpaid markets as the company completes its 4G network   upgrade (which shows better performance, versus T and VZ, according to   our vendor checks), launches its LTE network, and markets its new "no contract" plans with a reinvigorated device lineup.
 
We believe Sprint  will also face higher-than-expected cost pressures; this drives our below-consensus OIBTDA forecasts ahead of competitive differentiation in FY15.

    * LTE buildout progressing well, but still behind rivals. Sprint announced the launch of LTE in an additional 41 markets, bringing the total number of markets to 151. The company remains well behind both Verizon and AT&T, with T-Mobile quickly catching up to Sprint. T-Mobile also announced that it would offer LTE on wider channels in 90% of the top 25 markets by the end of 2013, versus the current 2x5 MHz deployment that both Sprint and T-Mobile are currently using.

    * Competitive intensity beginning to heat up. Both Sprint and T-Mobile have closed deals that provided capital and spectrum, creating a path forward for the two smaller players to better compete. However, we expect that Sprint may take until mid 2014 to approach competitive parity (especially for voice), and FY15 to differentiate on data; but T-Mobile should see churn improvement in FY13, which will affect Sprint, AT&T, and Verizon, in that order. Competitive intensity will affect both margins and capex costs as the four major operators compete on price and network quality.

    * Hard-line, versus pragmatic, DOJ stance remains cause for concern. The DOJ's hard-line stance regarding the need for four nationwide wireless players suggests less potential for a Sprint/T-Mobile US merger. The DOJ appears excited by the fact that wireless network operators have no choice but to invest, even if incremental returns are poor.

    * We are downgrading Sprint to Market Perform from Outperform. Our downgrade is based on expectations for a weak network position to persist amid increased competition from T-Mobile (in prepaid) and Verizon and AT&T (in postpaid). Our OIBDA forecasts are significantly below consensus.

.......................................................................................................

Other Analyst Ratings:

Analysts at Deutsche Bank  reiterated a “buy” rating on shares of Sprint Nextel Corp. in a research note to investors on Monday. Analysts at BMO Capital Markets cut their price target on shares of Sprint Nextel Corp. from $9.00 to $7.00 in a research note to investors on Monday, but they still have an “outperform” rating on the stock.

Two research analysts have a sell rating on Sprint, twenty-one have given a hold rating, eight have given a buy rating and one  has assigned  a strong buy rating to the stock. The company presently has an average rating of “Hold” and an average price target of $7.13.

http://www.watchlistnews.com/2013/07/31/sprint-nextel-corp-s-releases-quarterly-earnings-results-misses-expectations-by-0-25-eps/

Disclaimer: The author of this blog post does not hold stock in Sprint or any other telecom company!  We do not recommend buying individual stocks of any company.

FBR Research: Analysis of AT&T's latest earnings report + much greater wireless competition ahead!

From FBR Research Analyst David Dixon:

AT&T reported mixed 2Q13 results as the company responded to increased competitive intensity. Wireless churn deteriorated sequentially, offset by impressive postpaid net adds, largely driven by tablet growth. Management remains focused on prioritizing LTE network parity with Verizon to lower postpaid churn and expand wireless margins.

Smartphone adoption continued to increase nicely as AT&T sold 6.8 million smartphones, the highest level for the company in the second quarter, and also had the best-ever Android sales. At 88% of sales and 73% of the base, continued momentum is expected.

However, we believe AT&T (and Verizon) will experience increased competition in both the lower-end prepaid market (T-Mobile in FY13 and Sprint in FY14) and the higher-end postpaid market (Verizon). This may result in more-than-expected cost pressure.

More importantly, if Sprint can differentiate through Clearwire (something we will not see until mid FY14 at the earliest), AT&T may need to reconsider the acquisition of DISH Networks to improve its LTE spectrum position.

Note: Earlier this month, Clearwire shareholders approved Sprint buying the ~50% of Clearwire that it didn't already own.   Clearwire offers a nationwide wireless broadband network using spectrum in the 2.5GHz band. Sprint, which had previously owned about 50 percent of the company, is the only customer that Clearwire has for its wholesale network business. The company also has a retail business that offers wireless broadband service to consumers.   http://news.cnet.com/8301-1035_3-57592700-94/clearwire-shareholders-approve-sprint-takeover/

.............................................................................................................................................................

Selected data points:

LTE buildout progressing well toward completion; what's next for AT&T?

Management expects to "substantially complete" its initial LTE buildout by next summer. In comparsion, Verizon's LTE network now covers 500 markets, and more than 99% of the company's 3G coverage, with additional LTE capacity to be added in key markets.

AT&T benefits from a highly invested and high-performance 3G HSPA+ network, but 3G traffic will not slow as rapidly, limiting refarming potential.

Competitive intensity beginning to ratchet up. Both Sprint and T-Mobile have closed deals that provided capital and spectrum, creating a path forward for the two smaller players to better compete. We expect that Sprint may take until early 2014 to reposition, but T-Mobile should see churn improvement in FY13, which will affect Sprint, AT&T, and Verizon, in that order.

Competitive intensity will affect both margins and capex costs as the four major operators compete on price and network quality, not on device exclusivity. Higher data usage will keep pricing rational, but if Sprint differentiates with Clearwire, AT&T may need to acquire DISH Networks.

The proposed Leap Wireless acquisition will help AT&T's spectrum position and may crimp T-Mobile in key LTE markets. Given public DOJ comments supporting a four-player wireless market and plans to restrict AT&T or Verizon in the incentive auctions, AT&T was wise to seek spectrum to improve its PCS spectrum position, increase leverage on Sprint to sell WCS spectrum in Texas, and potentially crimp T-Mobile US in key markets. Recall that Leap's spectrum holdings cover the PCS and AWS bands covering 137M points of presence (POPs).

...............................................................................................................................................................................................

Note:  Mr. Dixon didn't discuss AT&T's Project Velocity IP (VIP), which has 3 components:  fiber to over 1K commercial buildings, U-Verse high speed Internet/TV service and IP-DSLAM high speed Internet but no TV.

At the June 12, 2013 IEEE ComSocSCV meeting, AT&T's Shiyama Clunie presented the highlights and progress of AT&Ts Project Velocity IP.  It's a major effort to expand AT&T’s wireless and wireline broadband network.  Under this initiative, which is underway now, AT&T expects to bring fiber to 1 million additional business customer locations, and its wireline IP network is expected to cover 57 million customer locations, by year-end 2015. These locations will have either U-Verse (video, Internet and voice) or U-Verse IP-DSLAM (high speed Internet and voice). AT&T also expects that its 4G LTE wireless network will cover 300 million people nationally by the end of 2014, and 99 percent of customer locations in AT&T’s wireline service area are expected to have high-speed Internet access through either IP wireline and/or 4G LTE wireless by year-end 2015. 

During its earnings call, AT&T reported on U-Verse progress:

"Total U-verse subs reached 9.4 million, while video subs topped 5 million customers for the first time. Total U-verse revenues grew better than 30%, and U-verse now represents more than 50% of consumer revenues. And even with little help from the economy, business wireline showed sequential revenue improvement and strategic business services grew by more than 15%. All this resulted in improved revenue growth, continued EPS gains and strong free cash flow even while investing more in our customers and in our Project VIP."

..................................................................................................................................................................................

References:

1.  AT&T Perspective on its most recent earnings report: http://www.att.com/gen/investor-relations?pid=282

2.  Transcript of AT&T Management Discussing most recent earnings: 

http://seekingalpha.com/article/1566022-at-t-inc-t-management-discusses-q2-2013-results-earnings-call-transcript

 

Is ITU Trying to Control/Manage the Internet as some pundits claim?

Disclaimer:  This article was stimulated by IEEE member Pat McClung on the IEEE member discussion group maintained by ComSocSCV.

 

In an editorial "The Internet at Risk," published in the March-April 2013 issue of Internet Computing, Google's Vint Cerf states:  "In some ways, the most pernicious proposals to limit the Internet's openness to users and applications comes from some of the members of the [ITU] ..."
http://www.computer.org/csdl/mags/ic/2013/02/mic2013020003.html

Pat McClung:  "Mr. Cerf goes on to describe the attempts of the ITU to put forward revised International Telecommunications Regulations treaty language (ITRs), that would have the effect of restricting or governing content or applications on the Internet."

Here's a Nov 27, 2012 Reuters post with add on commentary from Mr. Cerf:

"Google's Vint Cerf, the ordinarily diplomatic co-author of the basic protocol for Internet data, denounced the
proposed new rules as hopeless efforts by some governments and state-controlled telecom authorities to assert their power.

"These persistent attempts are just evidence that this breed of dinosaurs, with their pea-sized brains, hasn't
figured out that they are dead yet, because the signal hasn't traveled up their long necks," Cerf told Reuters."
===========================================================================
Opinion: Upon further investigation, this author finds no basis whatsoever for Mr. Cerf's claims, which seem out of context and misplaced.   I did some research and came up with report from the Fifth World Telecommunication/ICT Policy Forum   http://www.itu.int/en/wtpf-13/Pages/default.aspx
 
On the right upper side of that web page I clicked on Chairman's report http://www.itu.int/md/S13-WTPF13-C-0016/en
and extracted the following:
 
Dr Touré underlined the need to work together. ITU will continue its bridge-building role and can leverage its unique position as a neutral convenor, where Member States, Sector Members and other stakeholders can come together. The timing of this year’s WTPF, with its focus on International Internet-related public policy matters, was particularly appropriate – as we stand at a ‘tipping point’ between the Internet as a vital enabler of social and economic progress in the industrialized world, and the Internet as a valuable global resource and a basic commodity of human life everywhere. The WTPF can create a shared vision that can be transformed into effective action to bring connectivity to the two-thirds of the world's people who are still offline. He reminded delegates that WTPF is a forum for free-thinking debate and discussion on new and emerging issues.
Also found this item:
 
Significant progress on key issues of Internet Governance
 
http://www.itu.int/net/pressoffice/press_releases/2013/24.aspx#.UfRhtavn9jo
 
It's a tutorial leading up to the fifth ITU World Telecommunication Policy Forum, which is an ongoing series of CONFERENCES and not a standards meeting.  In particular:
 
"The run-up to the WTPF included three preparatory meetings of the Informal Experts Group – a cross-sectoral, multistakeholder group, comprising some 180 experts, which advised the Forum and supported the drafting of the Secretary-General’s Report which was the main input document to the conference."
 
http://www.itu.int/en/wtpf-13/Pages/report-sg.aspx
Conclusion:
   
The ITU World Telecommunication Policy Forum is not a standards body, but rather a series of conferences and forums.
A key point is that ITU is serving as a "neutral convener" where various members and stakeholders can come together for dialog and discussion.  ITU is not going to produce any rules or regulatory documents over how the Internet is to be controlled, governed, managed!  So in no way is it trying to exert control or govern the Internet.