Hyperscalers, Open RAN, Private 5G and chip announcements were top news at the MWC show in Barcelona last week. Based on disclosures at the show, Open RAN looks to go commercial in 2023 and 2024, hyperscalers are obtaining contracts to carry an increasing amount of telecom-related workloads, Rakuten Symphony is amassing a growing list of partners, Qualcomm/Marvell and other chip companies are taking front-stage at MWC, and there were a variety of new private 5G-related announcements including those from Cisco, Huawei, Mavenir and Federated Wireless. We took some time to compile some of the most noteworthy announcements, sorted by company.
DISH chairman says 5G deployment is 6 months behind schedule. DISH says it fell behind on a technical level and that it realized it has to become the systems integrator. Expects to light up 25 metro regions in June, representing 20% population coverage.
Huawei is pivoting towards fiber in certain markets like the home market. It announced, for instance, Fiber to the Room (FTTR) and contrasted it to Wi-Fi which it claims has a variable experience. Huawei's wireless Chief, Ryan Ding, keynote speech noted several points. By the end of 2021, Huawei signed more than 3,000 commercial 5GtoB contracts with Chinese operators and partners for industry applications (implies operators involved in all), including coal mining using remotely controlled shearers communicating over 5G.
Mavenir showcased End-to-End 5G Core, IMS and automation hosted on AWS. The company calls this a "pilot" and asserted that using a core on AWS system would reduce TCO and speed up rollouts. Mavenir also announced 5G Radio Units from 8T8R to 64T64R (Massive MIMO) that use Qualcomm chips and that it plans to develop vDU RAN software based on the Qualcomm X100 5G RAN Accelerator Card, both systems of which are expected to be available for global deployment in 2023.
Telefonica advocated for OpenRAN and explained its selection of technology suppliers such as radio/RRU/AAU (NEC, Comba, Airspan), Baseband (Altiostar/Rakuten Symphony), Small Cell (Node-H, Askey, Qualcomm), RIC (Nokia), as well as Intel, Mavenir, Parallel Wireless, IBM/Red Hat and VMWare. It says it selected NEC as the systems integrator. The pan-European operator said that Open RAN reduced vendor lock-in and is most cost-efficient over the medium/long term, however suffers from integration with OSS and the time to carry out interoperability tests until Open RAN is mature. It expects Pilots to continue during 2022, then initial deployments in 2022/2023, followed by "massive deployments" beyond 2023 (we think this means 2024).
Rakuten Symphony announced it had acquired San Jose, CA based Robin.io, an automation and orchestration software company. Rakuten Symphony also announced an Open RAN trial at MTN that includes Accenture and Tech Mahindra. Symphony also said AT&T will use Rakuten's Site Manager, a software system that designs workflows for network deployments; additionally, AT&T's proprietary capacity planning tool. Cisco and Rakuten announced a partnership described as a joint go-to-market model. Nokia is Rakuten's first "Symworld" partner, whereby Nokia's core software will be made available to Symphony customers.
Qualcomm. Made announcements about private 5G automation, a partnership with Microsoft about Private 5G, Mavenir portfolio expansion (also discussed elsewhere in this article), Fujitsu mmWave, and 5G FWA.
Orange announced plans to use Ericsson 5G SA core for Belgium, Spain, Luxembourg and Poland, Nokia 5G SA core for France and Slovakia and Oracle for 5G core signaling in all countries. It plans to launch SA commercially in 2023.
Microsoft Azure announced Operator Distributed Services, which is a combination of its 2021 acquisition of AT&T Network Cloud Services and Azure for Operators tools. The company explains that it will enable operators to run all their workloads, including RAN, core, mobile and voice core, OSS and BSS, on a single carrier-grade hybrid platform. Microsoft also announced that AT&T is integrating its 5G network with Microsoft Azure Private Multi-access Edge (MEC) computing to develop AT&T Private 5G Edge. Telstra collaborates with Ericsson and Microsoft to begin 5G-enabled edge compute trials.
Cisco announced ORAN partnerships with private 5G vendors like Airspan and JMA Wireless and said it is in customer trials with both vendors. As it had said a month earlier with its private 5G launch, this is being offered as a subscription service operated by Cisco, and Cisco will allow customers to use their own brand to market the service. Cisco announced it is on a variety of Private 5G projects including at Chaplin, Clair Global, Colt Technology Services, ITOCHU Techno-Solutions Corporation, Maderia Island, Network Rail, Nutrien, Schaeffler, Group, Texas A&M, Toshiba, Virgin Media O2, and Zebra Technologies.
ZTE announced lighter Massive MIMO radios, its UniSite NEO and a new "Gen 2" FWA CPE based on Qualcomm Snapdragon X65 and X62 5G Modem-RF platforms.
Marvell announced 5G-related product line enhancements, including a reference design with DELL technologies that creates a server based baseband processing system.
Today's big news from the FCC is that it will open up 6 GHz to Wi-Fi and other unlicensed uses. The FCC authorizes "1,200 megahertz of spectrum in the 6 GHz band (5.925–7.125 GHz) available for unlicensed use," and further explains that it authorizes "standard-power devices in 850 megahertz in the 6 GHz band. An automated frequency coordination system will prevent standard power access points from operating where they could cause interference to incumbent services." We see that this vote is very beneficial to Wi-Fi chip and systems companies that serve both consumer and enterprise markets. We also expect that outdoor systems that take advantage of this new spectrum may benefit wireless ISPs (WISPs) and their equipment suppliers. And, also, the FCC's statement that an automated frequency coordination (AFC) system will be used to prevent interference from existing microwave transmission systems. With that background, we have compiled a list of companies that will benefit from the FCC's vote.
WLAN Semiconductor companies Broadcom, Qualcomm, ON Semi, Celeno, and Intel. In our research of the WLAN Infrastructure semiconductor market, these are the vendors we expect to sell Wi-Fi radio chips to devices such as Access Points, Broadband Customer Premises Equipment (CPE) with WLAN, and Consumer Routers. A new class of Wi-Fi that takes advantage of 6 GHz is now called Wi-Fi 6E. Broadcom and Qualcomm have already made statements about Wi-Fi 6E in the past month or two, and others somewhat more recently. Historically, Broadcom and Qualcomm have enjoyed significant market shares of the enterprise WLAN Access Point market, while players in the consumer AP/router/CPE have included a wider list of players including Broadcom, Qualcomm, ON Semi (formerly Quantenna), Celeno, Intel, Realtek, Mediatek and others.
Enterprise WLAN companies Cisco, HPE Aruba, Commscope, Extreme Networks and Juniper. While each of these companies has launched Wi-Fi 6 products over the past couple of years that operate in 2.4 GHz and 5 GHz, we expect this group of companies to release Wi-Fi 6E products that connect over 6 GHz over the next year. We expect initially that 6E enterprise products will sit at the high end of product portfolios, selling at higher prices than 5 GHz and lower products. The FCC commented in today's press release that "The notice also seeks comment on increasing the power at which low-power indoor access points may operate," which means that there is still some work to do in figuring out whether these Wi-Fi 6E devices can operate at powers levels more common in enterprises without needing to connect to an AFC. We are sure there is more to come on this topic.
Consumer WLAN Infrastructure companies NETGEAR, Commscope, Technicolor, Amazon and Google. We expect NETGEAR to be an aggressive player in Wi-Fi 6E, just as it released super high-end Wi-Fi 6 products in its Nighthawk product line. We expect Broadband CPE vendors such as Commscope (through its Arris brand), Technicolor and others to benefit as they seek to capitalize on the new spectrum, which should allow the delivery of Wi-Fi at higher speeds and to more devices in the home. We wouldn't be surprised to see consumer mesh vendors such as Amazon (through its eero acquisition) and Google to offer Wi-Fi 6E products, but these probably come a bit later than traditional router and Broadband CPE devices.
Wireless ISPs such as Etheric Networks and Common Networks (both located near the 650 area code that we used to name our company, 650 Group) will likely benefit as they will be able to offer new WISP services over the new 6 GHz spectrum. Since the spectrum is new, essentially unused and there's lots of it, we expect that these, and other WISPs in the US market, can benefit by expanding beyond the current unlicensed spectrums commonly used today, such as 60 GHz, 5 GHz, 2.4 GHz and 900 MHz spectrums. We think it might take a year or two before the WISPs can capitalize on these spectrums, but we see it as a windfall.
WISP suppliers such as Ubiquiti Networks, Cambium Networks, Airspan, and others will be likely beneficiaries. These suppliers sell to WISPs and other operators to enable "last mile" services that compete with fixed-line broadband services such as cable modem, DSL and PON. As we alluded to above, the 5 GHz spectrum is quite crowded, and thus, as 6 GHz becomes available for outdoor use, we expect that a new class of equipment will take advantage of this ample spectrum to deliver broadband to a more significant number of business and consumers. The FCC has a "goal of making broadband connectivity available to all Americans, especially those in rural and underserved areas," according to its 6 GHz press release today, and we see WISPs as one of the main constituents of serving this goal.
Mobile network operators AT&T, Verizon, T-Mobile, and US Cellular. Similar to WISPs, we expect that mobile operators will eventually leverage 6 GHz to deliver Fixed Wireless Access (FWA) services (and potentially mobile services) to consumers and businesses. In suburban and rural areas, we have already seen some operators, notably Verizon, deploy FWA in licensed mmWave spectrum (in 20 GHz and 40 GHz ranges) - we have seen operators pare back on plans to deliver services, though they haven't stopped deployments or anything. But, we see 6 GHz could puff some new life into FWA plans because this is a lot of new frequency and since it is lower frequency than mmWave, does not suffer as much from immovable obstacles such as tree leaves, windows and precipitation. Additionally, we see mobile services could benefit as well, as we have already seen operators such as AT&T leverage 5 GHz unlicensed spectrum in delivering mobile service on its small cells in locations such as New York City, so we would expect mobile operators to eventually take advantage of 6 GHz in a similar fashion. But, incumbent services (point to point microwave systems) are more likely to interfere with mobile operators' plans in urban areas, where paradoxically, there is more need for this extra bandwidth, so we think operators will take some time to sort this interference out.
AFC services operators such as Federated Wireless. Given that the FCC announced a specific need for AFC services in its media blitz today (see above), we point out that Federated Wireless has already announced an AFC service. Just as Federated has competition in its CBRS SAS service from players such as Commscope, we would not be surprised to see new competition in AFC services.
Qualcomm made many wireless-related announcements today from its San Diego, CA headquarters, in place of making a presentation at #MWC20 in Barcelona. Top announcements included its FSM100xx 5G small cell chips customer announcements, RF-chip availability, Wi-Fi 6E demonstrations, and 5G smartphone customer announcements.
FSM100xx 5G RAN endorsements. Qualcomm announced its FSM 5G RAN platform in May 2018, targeting small cells and remote radio heads and enabling bothmmWave and sub-6 GHz spectrum using 10 nm process geometry. The company listed multiple vendors and operators in its press announcement relating to FMS100xx chips. Each of the vendors shared some interesting statistics, the most important of which we share here:
Qualcomm ultraSAW Filter. Expect availability in 2H20. Hit parity in performance in 2019 and now claims that its ultraSAW Filter will exceed performance of competitors, especially in high-bands.
Wi-Fi 6E. Qualcomm demonstrated 6 GHz operation between its Networking Pro Series (Wi-Fi 6 chips for Wi-Fi infrastructure like access points and routers). Qualcomm was not specific about the timetable for delivery of 6 GHz systems, but the company hinted that the 6 GHz demonstration “underscores Qualcomm’s readiness to extend its successful Wi-Fi 6 portfolio into the 6 GHz band for a transformative Wi-Fi 6E performance, pending regulatory approval.” The company expects that mobile devices using its Snapdragon 865 Mobile chips (intended for user devices like smartphones) can operate more than 3 Gbps when using the new 6 GHz spectrum, or 1.8 Gbps when using existing 2.4 GHz and 5 GHz available today. Qualcomm said its Networking Pro Series (Wi-Fi 6 chips) have been “deployed in more than 200 designs shipping or in development.”
Qualcomm Snapdragon 865 Mobile Platform. The company announced that its chip system for mobile phones that features its second-generation 5G Modem-RF system, the Snapdragon X55, has been “announced or are in development” in over 70 designs, including those from top vendors such as OPPO, Samsung, Xiaomi and ZTE.
Additionally, the company made VR devices and Personal Computer (PC) announcements including partners such as Facebook (VR) and Microsoft (PC).