Mavenir held its annual analyst event this week and highlighted some important information highlighting its progress in transitioning to a maturing ecosystem player in the telecom equipment industry. The company highlighted its recent Koch Brothers $500M investment; existing investors include Intel/Nvidia and Siris Capital, who remain majority equity holders. The company highlighted that it grew revenues and bookings in the mid 20’s percent year-over-year in its Fiscal 2020, an impressive figure. Two main themes came from the show. First, the company’s RAN portfolio is picking up steam. Second, the company’s portfolio now spans very wide, from telecom core to RAN.
The RAN portfolio has made significant progress. The company claims over 20 deployments in 14 countries. And, Mavenir has demonstrated the capability to deploy on AWS, IBM Cloud, Microsoft Azure, Oracle Cloud, Google Cloud, and VMWare. The company spent a great deal of time reviewing definitions of various Open RAN terminology, to address confusion, spanning from vRAN, O-RAN, C-RAN, Cloud-RAN, and Open vRAN. We’ve seen many public statements from Mavenir, its competitors, operators and pundits, alike, espousing the various benefits of some or all of these systems. We think the point Mavenir was making at its conference is that Open vRAN is the most open, interoperable system. When operators enable open systems, of course, it allows Mavenir and other vendors to bid on deals for networks that have existing equipment from traditional vendors like Ericsson, Nokia, Huawei, and ZTE. We see Mavenir’s efforts to work with various infrastructure companies and systems like AWS and VMWare as a means of gaining a foothold with operators who are trialing or in the early stages of deploying these various infrastructure systems. Speaking of partners, the company claims it has relationships with nearly 15 Remote Radio Unit (RRU) players. The company says it can deliver Massive MIMO capabilities to customers, which means that its RAN systems can satisfy what would be considered mainstream 5G use-cases; this represents very significant progress over last year’s RAN capabilities.
Mavenir’s portfolio is extensive. The company made separate presentations about the following topics: RAN, OSS, Radio, Packet Core, Mobile Core, BSS/Digital Enablement, Security, Private Networks, and Enterprise over three days. With over 5,000 employees spanning the globe, exposure to the most relevant parts of the mobile infrastructure industry, Mavenir is a serious contender for deals. The company also highlighted that its telecom core technology uses modern programming techniques that enable it to operate on cloud infrastructure; among these are fully containerized micro-services design. The company shared that most microservices file sizes are under 25 Mbytes, evidence that the systems are designed as microservices (and can load fast).
The fact that in April 2021, well-known Koch Bros made a $500M “strategic minority” equity investment in the company is an important validation of Mavenir’s place in the telecommunications industry. We see the investment as a reinforcement of the company’s balance sheet and an opening to new customers.
This week's MWC Barcelona 2021 had several themes; the most important was that several outsiders to the telecom industry were ever-present. The new entrants – the party-crashers - included Starlink, Microsoft Azure, Amazon Web Services, Google Compute, and NVidia. These new players are forcing change either through economics, new technology, or new regulatory frameworks, or combinations thereof. We’ll touch on the importance of these crashers and then circle back to a few other ongoing themes that continue to remain relevant in this article.
Satellite broadband, while not exactly a mobile technology, will catalyze significant changes to the mobile industry. Low Earth Orbit (LEO) satellite services, evangelized today by SpaceX-owned Starlink, announced plans to spend as much as $30B in building out its constellation over its lifespan. Yet, it will reach users across the globe. Elon Musk said Starlink is in beta in 12 countries, and it plans to have ½-million users in the next 12 months. The billionaire highlighted that Starlink’s ability to reach rural populations is unlike that of terrestrial players. We think the rural reach of LEO broadband is precisely why Starlink will be so important. Musk’s pitch to the mobile industry was that of a partnership – he said that Starlink is partnering with 5G MNOs to offer satellite backhaul and rural broadband services. We view satellite broadband, and later 3GPP satellite, as critical components in the telecommunications industry, and therefore we chose to write about satellite first in this article.
All three hyperscalers, Azure, AWS, and GCP, made a splash at MWC21. As a group, these infrastructure providers have already changed the way telcos operate. In fact, the hyperscalers’ architectures were the inspiration behind the decade-old telco push for Network Functions Virtualization (NFV). But, these days, hyperscalers’ operations are more than an inspiration to the telcos. MNOs are now moving some of their workloads to hyperscaler infrastructures. The evolution of these workload migrations to hyperscalers is moving in three phases, phase 1, the back-office, then phase 2, telecom core, and last, phase 3, the access layer. In the weeks leading up to MWC21, we’ve seen progress on all three workload migrations, including that on Mobile RAN. Incoming AWS CEO Adam Selipsky said at MWC that AWS is talking to “virtually every telecom operator.”
Some examples of announcements made surrounding the MWC show include:
With Open RAN capabilities come the possibility that MNOs can source various RAN components from multiple vendors. Rakuten has already technically demonstrated multi-vendor sourcing (Altiostar baseband and Nokia and NEC radios). In addition to system-level multi-vendor interoperability, in previous years, multiple semiconductor companies had been bolstering their RAN offerings (Marvell, Qualcomm, EdgeQ). Marvell had previously crashed MWC (MWC19 and MWC20) and is now a RAN supplier to Samsung and Nokia. For MWC21, we saw yet another entrant to the RAN chip market, NVidia. NVidia has received pubic endorsements from Ericsson, Fujitsu, Mavenir, and Radisys. NVidia’s current chip offering is called “AI-on-5G,” and the company’s offering starts in 2021 as an “on a server.” NVidia’s next offering is expected in the 2022-2023 era and will be an “on a card” offering. Then, after 2024, NVidia will offer its “on a chip” offering.