AvidThink

Research and Analysis

AvidThink 2024 February Newsletter

101,000! That’s the official number of MWC 2024 attendees announced by GSMA. It felt like we were bumping into each of the 101K on Day 2 as we jostled and fought through the expo halls.

MWC Barcelona 2024 Showcase

We continue to edit and upload videos, but check out our joint showcase with our media partner, Converge Digest, at https://nextgeninfra.io/2024-mwc-barcelona/. We have many thought leaders sharing perspectives on telco modernization, telco, and network APIs, AI/GenAI, private wireless, and other hot topics: Arrcus, Dell, HPE, Juniper, Marvell, Nvidia, Rakuten, Red Hat, Spirent, Rohde & Schwarz, and more.

MWC 24 Takeaways

Given the diversity of exhibitors and sessions, capturing all the takeaways from the conference would be hard. Nevertheless, from an infrastructure technology lens, we observed the following key themes:

  • Ongoing search for 5G monetization — The search continues, with no clear silver or even lead bullet. Fixed wireless access (FWA) doesn’t really count, though it helps.
  • Overly enthusiastic expectations for network and telco APIs — GSMA Open Gateway/Linux Foundation CAMARA is a good step forward in uniting global telcos to advance APIs. Still, multiple $100B of revenue will not magically appear. We should recognize that CAMARA APIs like SIM Swap or identity verification for fraud prevention were available years ago with Twilio and OTT app-based mechanisms. Our analysis of the CAMARA APIs shows immaturity, requiring efforts in categorization, normalization, and abstraction-leveling, and that will take time and effort.
  • Disaggregation moves forward — As with SDN and NFV, we believe the architectural underpinnings for Open RAN, core/RAN virtualization, and disaggregation will be embraced and adopted. Commercially, though, it’s possible that single-vendor RAN and single-vendor 5G core will dominate, dashing hopes for a vibrant, diverse, and expansive ecosystem. The same might be true with O-RAN service management and orchestration (SMO) and the RAN intelligent controller (RIC) — xApp and rApp marketplaces are still an “if,” not a “when.” But with Telus committing to deploying open RAN for 50% of its base stations, NTT DoCoMo using a hybrid public-private multi-vendor deployment with open RAN, and Telenor demonstrating multi-vendor 5G core feasibility, there’s hope yet.
  • Hyperscaler and CSP hatchet buried — Hyperscalers, web giants, and CSPs are now actively partnering to solve carrier infrastructure issues and innovate new services. The reality is that both sides need each other: hyperscalers desire the revenue stream from CSPs, and like CSPs’ market reach, the CSPs need hyperscaler help to modernize.
  • GenAI everywhere — Every stand had AI/ML and GenAI; it was impossible to avoid. There are near-immediate benefits for customer services, marketing, and sales, but it’s early days for network configuration, troubleshooting, and management. ML-based optimization based on traditional AI (CNNs, RNNs, LSTMs, etc.) will continue adding value. Telcos also need to realize they have to invest in data modernization to extract full value from AI. And we’re not convinced building a telco foundation model is warranted — fine-tuning one is, though.
  • Private wireless is inching along — There are enough signs of life across GSIs, CSPs, and NEPs that we believe will unlock value across industries, educational institutions, and hard-to-reach locations like mines, reservations, and rural communities.

We were glad there was muted 6G hype and limited 5G-Advanced features on display. From catching up with our CSP friends, they are currently focused on monetizing their 5G and fiber buildouts, streamlining and reducing OpEx, and lobbying for more spectrum and decreased regulation. On the show floor, NEPs, ISVs, and GSIs understood the importance of messaging how they can help telcos save or make money, and not spend more.

We’re happy to share more insights than we could fit in this newsletter; feel free to contact us at [email protected].

Post-MWC Events

Roy is scheduled to be at Nvidia GTC, KubeCon + CloudNativeCon EU in France in March, at MPLS World Congress’ 25th Anniversary (including their new Global IP Summit) in Paris, and FutureNetWorld in London. Unfortunately, we can’t be at OCP Regional in Lisbon, but we will support stateside. May will see us at the RSA Conference and ONUG in Dallas:

Other NextGenInfra Sites

Check out the following resource sites if you haven’t yet:

And other recent events you can browse:

Recent event recordings:

News

And now, our rundown of the latest infrastructure technology news from February:

5G

Singtel, Ericsson and Samsung Test World’s First App-based 5G Network Slicing
Singtel, Ericsson and Samsung tested the world’s first live app-based 5G network slicing, allowing app providers to activate customized slices that enhance app performance and user experience. The trial used User Equipment Route Selection Policy with Application Detection Control on Ericsson’s dual-mode 5G core.

AT&T Outage Impacts Over 70,000 Users, Sparks Debate on Automation
AT&T’s wireless network experienced an outage on Feb. 22 affecting over 70,000 users in the US and Canada, also impacting T-Mobile and Verizon customers calling AT&T users. AT&T attributed the issue to an incorrect process during network expansion, but analyst Roger Entner suggests it could be related to the shift from legacy hardware to software-based solutions.

Cradlepoint Launches 5G FWA Router for SMBs
Ericsson’s Cradlepoint unveiled the X10 5G router designed for small and medium-sized businesses, offering enterprise-class features and compatibility with Cradlepoint’s NetCloud Manager software. The router enables service providers to offer tiered security and quality-of-service-based plans to their SMB customers.

T-Mobile Claims New 5G Uplink Speed Record Using UL Tx Switching
T-Mobile achieved uplink speeds of 345 Mbps on its 5G standalone network using uplink transmit switching (UL Tx), setting a new record in North America for sub-6 GHz spectrum. The test utilized Nokia’s AirScale portfolio, a Qualcomm Snapdragon-powered smartphone, carrier aggregation, and single-user MIMO.

Satellite Firms Form MSSA to Advance Direct-to-Device Ecosystem
Viasat, Terrestar Solutions, Ligado Networks, Omnispace, and Al Yah Satellite Communications established the Mobile Satellite Services Association (MSSA) to promote the use of their combined 100+ MHz of L- and S-Band spectrum for satellite-to-cellular services (direct-to-device or D2D). MSSA members believe their spectrum offers an opportunity for companies hesitant to use carrier-licensed spectrum for this application.

6G

Samsung Collaborates with Princeton University on 6G Development
Samsung Research America (SRA) is partnering with Princeton University’s School of Engineering and Applied Science to develop 6G technologies as part of the university’s NextG Initiative. The initiative aims to accelerate the adoption of new technologies and drive innovation in cloud and edge networks, intelligent sensing, and network resilience.

InterDigital Bets on AI and Satellite Integration for 6G Success
InterDigital predicts that 6G will integrate artificial intelligence into the radio and core networks, incorporate satellite communications, and offer more accurate sensing capabilities compared to 5G. The company believes 6G is necessary to reduce operators’ costs by improving network efficiency.

Open RAN

Microsoft Exec Criticizes Open RAN Readiness, Calls for Faster Industry Progress
Yousef Khalidi, Microsoft’s corporate VP of Azure for Operators, expressed concerns about the maturity of the current O-RAN stack, stating that it is not ready for large-scale deployment. Khalidi believes the industry has not moved quickly enough on the O-RAN front.

Vodafone Expands Open RAN Deployment to Romania Using Samsung Template
Vodafone is deploying open RAN in Romania using its “template” tested in the UK, which includes a Wind River private cloud platform, Dell servers with Intel chipsets, and Samsung radios and baseband software. This deployment brings Vodafone closer to its target of using open RAN in over 30% of its footprint by 2030.

Telus Partners with Samsung and HPE for Open RAN 5G Network in Canada
Canadian operator Telus announced it will deploy an open RAN 5G network using Samsung’s 64T64R massive MIMO radios and AI-based service management platform, as well as HPE servers with 4th-gen Intel processors and Wind River cloud infrastructure. The rollout will begin in the first half of 2024, covering approximately 3,000 sites across Canada.

AT&T and Ericsson Hit First Open RAN Milestone with 5G Cloud RAN Call
Ericsson’s cloud RAN equipment is now carrying commercial traffic for AT&T in Dallas, Texas, marking the first milestone in AT&T’s plan to deploy Ericsson 5G open RAN in 70% of its network. The setup includes Dell servers with Intel x86 silicon and Ericsson’s open RAN software.

NTIA Funds $42.3M Open RAN R&D Facility in Dallas with Telco and Vendor Support
The National Telecommunications and Information Administration (NTIA) is providing $42.3 million to establish an open RAN R&D center in Dallas, Texas, and a smaller facility near Washington, DC AT&T, Verizon, NTT DoCoMo, and Reliance Jio are founding members, with participation from major vendors and universities.

AI RAN Alliance Formed by SoftBank, Nvidia, T-Mobile and Others to Drive Network Efficiency
A new AI RAN Alliance was launched at MWC to leverage AI in the RAN for improved network efficiency, reduced power consumption, and new revenue opportunities. Founding members include AWS, Arm, DeepSig, Ericsson, Microsoft, Nokia, Northeastern University, Nvidia, Samsung, SoftBank, and T-Mobile.

Telcos Cautiously Adopt AI in Network Core, Focus on Anomaly Detection and Power Management
While telcos are using AI to enhance customer experience and network operations, they are moving cautiously with AI in the network core. Intel suggests anomaly detection and power management as likely initial use cases. However, a McKinsey survey found that 40% of operators have achieved 1-5% network cost savings through AI, with another 15% reporting 6-20% savings.

Microsoft Introduces AI-Powered Azure Operator Call Protection to Detect Scam Calls
Microsoft launched Azure Operator Call Protection, a network-based service that uses real-time AI to analyze voice calls and alert users of potential scams. The software utilizes generative AI to analyze voice patterns and emotions without requiring app installation.

Edge

Vapor IO Partners with Comcast to Offer AI-as-a-Service with Zero Gap AI
Comcast is collaborating with Vapor IO to provide the company’s Zero Gap AI micro-cloud product to enterprises, initially focusing on private 5G and GPU-based micro-clouds for retail, industrial, and smart city applications in Atlanta and Chicago. Vapor IO aims to expand the offering to more US markets and secure partnerships with cable companies.

APIs

GSMA’s Open API Project Gains Traction, Targets $300B Opportunity by 2030
The GSMA’s Open API project has grown to 47 mobile operator partners, representing two-thirds of global mobile connections. Research commissioned by the GSMA suggests the API ecosystem may create a $300 billion opportunity by 2030. Ericsson’s Vonage aggregates many telcos alongside other platform providers like AWS, Nokia, Infobip, and Microsoft Azure.

AWS Marketplace Expands to Telco APIs, Partners with Vonage and Major Operators
Amazon Web Services (AWS) is making its Marketplace available for telco APIs, partnering with Vonage to offer fraud detection APIs and collaborating with Verizon, T-Mobile, Telefonica, Orange, and Liberty Global to provide developers with access to network APIs. The move benefits developers and operators by exposing AWS’s vast developer network to operator APIs.

AT&T Collaborates with Vonage to Expose Network APIs to Developers
Following Verizon’s announcement to work with Vonage on network APIs, AT&T revealed a similar initiative to expose API-enabled network capabilities via Vonage’s platform for its developer community. The APIs are standardized under the Linux Foundation’s CAMARA open-source project and available through AT&T’s Accelerator Program.

Private Wireless

Verizon Deploys Private 5G Networks in NHL Arenas for Enhanced Fan and Coach Experiences
Verizon is collaborating with the National Hockey League (NHL) to install private 5G wireless networks in league arenas. The networks will support innovative applications for fans, such as cashier-less checkouts using mobile payment apps, and provide coaches with access to video coaching features like replay reviews on tablets.

Kyndryl Partners with HPE’s Aruba and Athonet for Integrated Private LTE and 5G Services
Kyndryl is partnering with HPE’s Aruba and Athonet divisions to deliver integrated wired, Wi-Fi, and private LTE/5G networks to enterprises. The offering combines Athonet’s private 5G package with Kyndryl’s multi-cloud mobility, networking, and compute-as-a-service solutions, allowing customers to manage network conditions using Kyndryl’s Bridge services platform.

Toyota Deploys Ericsson’s Cradlepoint 5G Private Network in US Forklift Parts Factory
Ericsson’s Cradlepoint is implementing a 5G private network for Toyota at the carmaker’s US forklift parts factory, marking the first private network installed by an integrator instead of a service provider. Toyota uses the network to replace its Wi-Fi handheld scanners and resolve coverage issues inside and outside the factory.

Verizon Business Expects 5x Growth in Private Wireless Business in 2024
Jennifer Artley, Verizon Business SVP of 5G Acceleration, stated at MWC Barcelona that the operator anticipates a fivefold increase in private wireless business in 2024 compared to 2023. However, she noted that device availability remains a significant obstacle to meeting the growing demand.

SD-WAN

Broadcom Repackages VMware SD-WAN, Integrates Symantec Security to Create VMware VeloCloud SASE
Following its acquisition of VMware, Broadcom has revamped VMware’s VeloCloud SD-WAN product, integrating it with Broadcom’s Symantec Enterprise Cloud security service edge offering to create VMware VeloCloud SASE, secured by Symantec. The integrated solution aims to help customers secure highly distributed network resources and includes features like Dynamic Multipath Optimization and Edge Cloud Orchestrator.

SASE Vendor Aryaka Appoints Ex-Google Cloud and Cisco Exec as New CEO to Drive Growth
Aryaka hired Shailesh Shukla, a former Google Cloud and Cisco executive, as its new CEO to replace interim CEO Darin McAreavey. Shukla, who has been on Aryaka’s board since September, aims to grow the company’s annual recurring revenue from over $100 million to $1 billion by offering a flexible, unified approach to SASE that combines multi-vendor and single-vendor elements.

Cisco Restructures, Cuts 4,250 Jobs to Focus on High-Growth Areas Like Software
Cisco announced plans to cut 5% of its workforce (approximately 4,250 employees) due to slowing corporate spending and macroeconomic uncertainty. CEO Chuck Robbins stated that the company is restructuring to focus on high-growth areas like software, as evidenced by its recent $28 billion acquisition of Splunk. Cisco reported a Q2 2024 net income of $2.63 billion, down from $2.77 billion a year ago.

Cloud

Broadcom Sells VMware’s End-User Computing Division to KKR for $4 Billion
Shortly after completing its $61 billion acquisition of VMware, Broadcom agreed to sell VMware’s end-user computing division to investment firm KKR for $4 billion. The divested division will become a standalone company led by Shankar Iyer, with KKR planning to expand its R&D and go-to-market functions. Broadcom CEO Hock Tan previously indicated plans to divest non-core VMware divisions, including the end-user computing group and Carbon Black.

And that’s a wrap! We hope to see you in March at one of the many conferences. Meanwhile, contact us at [email protected] anytime.