AvidThink

Research and Analysis

AvidThink 2024 January Newsletter

MWC 2024 in Barcelona is just three weeks out, and we’re looking forward to seeing many of you in person!

Book Time With Us at MWC 2024

While our calendars are filling up, there are still slots available for briefings and our MWC 2024 showcase — check out our MWC 2023 and MWC 2022 showcases. Our media partner, Jim Carroll, of Converge Digest, and we are taking reservations for onsite sponsored interviews. Email [email protected] to grab a time slot with Jim. For an analyst briefing with AvidThink, email [email protected].

Other Upcoming Events

We try to keep the AvidThink Events page updated. Contact us if you will be at any of these events. We’re adding more events soon, so stay tuned.

Before MWC, we’ll visit the Chiplet Summit on Feb 6-8 to track the latest in silicon architecture. Then Roy will be on a judging panel at the upcoming VMware and Intel virtual event, TECHCOnnect Use Case Innovation Showcase, which will spotlight successful multi-vendor use cases that are driving significant change in the Core, RAN, RIC and Edge. The winners will be featured at the VMware by Broadcom booth at MWC.

Post-MWC, Roy will be at the events below, in addition to attending RSA Conference in May. Join us at these events by registering:

2024 Predictions Galore and other NextGenInfra Sites

If you follow us on social media or are subscribed to our NextGenInfra YouTube channel, you’ve likely seen several 2024 prediction videos. Check out the complete Predictions 2024 showcase and let us know if you agree with the predictions. Thanks again to those who participated — we know it takes effort to record and submit, and we appreciate your time. BTW, for those of you watching, count how many mentions of AI, and we can compare notes.

In addition, here are relevant NextGenInfra sites for you to peruse (don’t forget to download our reports, made possible by our sponsors):

Here’s a list of video showcases from recent events you can browse:

Recent event recordings of note:

News

And now, here’s a quick rundown of the latest infrastructure technology news.

5G

2024: A Promising Year for 5G Equipment Suppliers
2024 is expected to bring growth for 5G equipment suppliers. U.S. cell tower operators indicate rising demand for tower space. Dell’Oro Group forecasts a 17% increase in RAN equipment sales in North America despite a decline in overall wireless capex.

Net Neutrality Concerns Over Network Slicing Raised by T-Mobile
In a regulatory filing, T-Mobile expresses concerns that net neutrality uncertainties may hinder network slicing. The FCC’s proposed rules create ambiguity, impacting 5G market dynamics in the U.S., as echoed by Nokia’s FCC filings.

China’s 2023 Investment in 5G Surpasses $26 Billion
China invested $26.6 billion in 5G networks in 2023, a 5.7% increase from 2022, accounting for over 45% of the country’s telecom investments. Total investment in 5G base stations now exceeds $102 billion, with 3.4 million out of 11.6 million total base stations being 5G.

T-Mobile Chooses Nokia for New FWA Gateway
T-Mobile partners with Nokia to use their multi-access gateway (MAG) for fixed wireless access (FWA) service. This technology supports various 5G and LTE standards, aiming to simplify network architecture and reduce energy usage.

T-Mobile Anticipates Slower FWA Growth in 2024
After adding 541,000 FWA subscribers in Q4 2023, T-Mobile projects a slowdown in FWA growth for 2024. Despite no network capacity constraints, analysts suggest potential network strain from FWA customers as a contributing factor.

AT&T’s FWA Service Gains Unexpected Subscriber Growth
AT&T reports an unexpected surge in FWA subscribers, adding 67,000 in Q4 2023. Despite a selective approach to its FWA offering, AT&T’s Internet Air has gained traction, contrasting with its focus on long-term fiber investments.

Verizon’s FWA Subscriber Base Exceeds 3 Million in Q4 2023
Verizon’s FWA business grows to over 3 million subscribers, with 375,000 additions in Q4 2023. Despite gains in postpaid phone customers, Verizon faces challenges in its prepaid wireless segment, reporting significant customer losses.

Dell’Oro Forecasts Marginal Growth in Mobile Core Network Market
Dell’Oro Group predicts minimal mobile core network market growth, with a less than 1% CAGR from 2023 to 2028. The forecast attributes this to a slowdown in standalone 5G infrastructure deployments, contrasting with higher growth in multi-access edge computing and 5G.

Cloud

Microsoft’s Profits Soar 33% Fueled by AI Investments
Microsoft reports a 33% profit increase to $21.9 billion in fiscal Q2, with revenue reaching $62 billion, an 18% year-over-year increase. This growth is driven by its AI and cloud ventures, with Azure’s performance notably surpassing competitors.

Telcos Hesitant to Migrate Core Applications to Public Cloud
Despite cloud providers’ efforts, telcos show reluctance to move core applications to the public cloud. Most operators, except Dish Network, prefer keeping 5G core networks in-house, citing control and management as key reasons.

Vodafone and Microsoft Partner on $1.5 Billion AI and Cloud Deal
Vodafone signs a 10-year, $1.5 billion deal with Microsoft for AI and cloud services. This partnership includes deploying Azure Open AI and Copilot technologies and transitioning to Azure cloud services, with Microsoft also investing in Vodafone’s IoT platform.

Google Eliminates Cloud Switching Fees to Encourage Provider Flexibility
Google removes data transfer fees for switching cloud providers, aiming to promote customer flexibility and challenge restrictive practices by other providers. This move is part of a broader push for fair cloud market competition.

Arrcus Introduces Egress Cost Control for Cloud Networking
Arrcus launches Egress Cost Control for its FlexMCN platform, allowing users to track and manage cloud egress fees. This feature aims to reduce costs by dynamically selecting cost-effective routing options in cloud networks.

HPE Acquires Juniper Networks for $14 Billion
HPE announces the acquisition of Juniper Networks for $14 billion in cash. This move will enhance HPE’s networking capabilities and leverage Juniper’s AI expertise for new enterprise product developments.

DriveNets Integrates Cisco Optical Modules into Networking Solutions
DriveNets incorporates Cisco Acacia’s 400G ZR/ZR+ optical modules into its network cloud platform. This integration enables a mix-and-match approach to networking components and supports large-scale network deployments.

VMware CMO Exits Following Broadcom Acquisition
VMware’s Global CMO, Laura Heisman, departed after Broadcom’s acquisition and moved to Dynatrace, marking a significant executive shift following the acquisition.

Open RAN

Viavi Secures $21.7M NTIA Grant for Open RAN Testing Lab
Viavi received a $21.7 million NTIA grant to establish an Open RAN testing lab, contributing to total funding of over $27 million. The lab will provide comprehensive testing services for Open RAN components in Chandler, Arizona.

Industry Leaders Caution Against Open RAN Market Fragmentation
Open RAN advocates warn U.S. lawmakers of potential irrelevance due to market fragmentation. They highlight concerns over proprietary solutions and standards divergence, which could impede the technology’s adoption and integration.

Montana’s Triangle Communications Faces Open RAN Deployment Challenges
Triangle Communications, a Montana wireless operator, has had difficulty deploying Open RAN technology. Despite Mavenir’s assistance, technical glitches, funding shortages, and weather conditions hinder progress.

SD-WAN

Versa Enhances SASE Offering with High-Speed Throughput Devices
Versa Networks introduces new SASE devices, CSG5000 and Dell PowerEdge R7515, offering up to 120 Gbps of firewall throughput. These devices signify an upgrade in performance and capabilities compared to previous models.

Verizon Business Reports $5.8 Billion Impairment Charge Amidst SD-WAN Shift
Verizon Business takes a $5.8 billion impairment charge, attributed to the industry’s transition from MPLS to SD-WAN technologies. This shift impacts revenue as businesses increasingly opt for SD-WAN’s flexible connectivity solutions.

Zscaler Launches Integrated Zero Trust SASE Solution
Zscaler introduces Zscaler Zero Trust SASE, a unified SASE solution, and a Zero Trust SD-WAN product. These solutions are based on a zero-trust architecture, emphasizing security and connectivity across users, locations, and clouds.

SASE Market Projected to Reach $16 Billion by 2028
Dell’Oro Group forecasts the SASE market to grow to over $16 billion by 2028, a 12% CAGR. The increasing demand for integrated networking and security solutions in hybrid work environments drives this growth.

AI

GSMA and IBM Collaborate on AI Training for Telecom Leaders
The GSMA partners with IBM to develop AI training programs for telecom leaders, leveraging IBM’s AI and data platform, WatsonX. The program aims to enhance skills in generative AI for cost leadership, revenue growth, and customer service improvements.

Private Wireless

Memphis Utility Invests $27M in Spectrum for Private Wireless Network
Memphis Light, Gas, and Water commits $27 million to acquire a 600 MHz spectrum license for a private wireless network. An additional $31 million is planned for network construction, supporting utility operations such as monitoring city infrastructure.

And that’s a wrap! We hope to see you in Barcelona or at one of the many conferences during the year. But feel free to contact us at [email protected] anytime.