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EMS/ODM Specialists Report Weak Demand For Communications Hardware

Posted by Matt Walker  on February 8, 2018

Growth of the cloud and open networking is shifting EMS/ODM priorities, and lifting Taiwanese vendors Most telecom vendor OEMs outsourced their manufacturing to partners long ago. Chinese & Japanese vendors remain exceptions, preferring to do most manufacturing int... READ MORE

Tag(s): Cloud, Internet of things (IoT), M&A, Open networking, 5G

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Telco-OTT Battle Is Looming In India As Net Neutrality Policy Is Reviewed

Posted by Matt Walker  on December 14, 2017

Globally, operators are experiencing a rough patch, with sliding core revenues combined with an ongoing need to invest and maintain their networks. The wide usage of apps and services provided by OTTs, purchased easily from a smartphone or other device (e.g. Apple TV, R... READ MORE

Tag(s): Regulations & policy, Mobile broadband, Over the top (OTT), Telcos, Content/video

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Understanding The Carrier-Neutral Market (And Why Revenues Will Pass $40B This Year)

Posted by Matt Walker  on December 11, 2017

MTN Consulting has just published a “Market Review” of the carrier-neutral network operator (CNNO) sector. The report assesses the key role that these tower, data center, and bandwidth specialists are playing in the downsizing of the telecom sector. While ma... READ MORE

Tag(s): Capex, Data centers, Telcos, Fiber optics, Infrastructure sharing, Cell towers

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Indian Operators Divesting Tower Assets To Raise Cash

Posted by Matt Walker  on November 2, 2017

Faced with tough competition and high debt, Indian telecom operators are spinning off their tower assets to investors or independent tower companies to improve their financial situation. The 2016 sale of Tata Teleservices’ tower business (Viom) to ATC, an... READ MORE

Tag(s): Capex, Regulations & policy, M&A, Mobile broadband, Telcos, Infrastructure sharing, Cell towers, India

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Weak network spending climate becoming more apparent

Posted by Matt Walker  on October 31, 2017

Fidelity’s “Communications Equipment” index is up nearly 11% so far this year, tracking just a few points behind the S&P 500’s YTD gain of about 15%. Looking ahead, though, the communications equipment sector remains challenged, something 3Q1... READ MORE

Tag(s): Capex, Earnings, Fixed broadband, M&A, Mobile broadband, Telcos

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Cisco Buys BroadSoft For $1.9B In A Cloud & Collaboration-Driven Deal

Posted by Matt Walker  on October 23, 2017

Cisco Systems is one of the largest suppliers to network operators worldwide, including telcos. Its growth strategy from the start has been reliant heavily on acquisitions, and 2017 has been no exception. Today the vendor announced it would buy Gaithersburg, Maryl... READ MORE

Tag(s): Cloud, M&A, Telcos, Collaboration

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Early Telco Reporters Verizon & Rogers Provide Mixed Signals For Vendors

Posted by Matt Walker  on October 19, 2017

The first sizable telcos reported 3Q17 earnings this morning: Verizon and Rogers. Both can point to reassuring bottom line results. For the 9 months ended September, operating & net margins improved year-over-year, as did earnings per share. Rogers’ EPS throug... READ MORE

Tag(s): Capex, Earnings, M&A, Telcos, Content/video, Infrastructure sharing, Cable TV

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Communications Sector M&A Dominated By Infrastructure In 3Q17

Posted by Matt Walker  on October 18, 2017

October’s seen a few mergers already, including Airtel-TTSL, a tower sale by Zain and the long-rumored Sprint-T-Mobile transaction (confirmed yesterday). Some interesting deals came out of 3Q17 too, especially in infrastructure markets.63 M&A transactions announced, includi... READ MORE

Tag(s): Data centers, M&A, Telcos, Fiber optics, Infrastructure sharing, Cell towers

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India’s RCom Under Pressure After Its Failed Merger With Aircel

Posted by Matt Walker  on October 12, 2017

Reliance Communications’ (RCom) long-planned merger with Aircel, part of Maxis, fell apart last week in the face of legal and regulatory hurdles. This news comes as multiple operators in India are struggling with debt and declining margins. Both RCom and Aircel f... READ MORE

Tag(s): Capex, Earnings, M&A, Mobile broadband, Telcos, Infrastructure sharing, Cell towers, India

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Security Specialist Barracuda Reports 7% Revenue Growth; Margins Still An Issue

Posted by Matt Walker  on October 11, 2017

Barracuda Networks, a security/data protection solution vendor, yesterday reported $94.3M in revenues for the quarter ended August (~3Q17). That’s 7% growth from the prior year (June-August 2016). This growth rate would satisfy many companies, including ... READ MORE

Tag(s): Earnings, M&A, Security

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Third Quarter Earnings Season Around The Corner (And Yes, It’s Cloudy)

Posted by Matt Walker  on October 6, 2017

Over the next 3 weeks, companies across the communications sector will begin reporting third quarter (3Q17) results. Watch for telco progress The world has never been so reliant on secure communications, but the underlying market is in a bit of turmoil. The cloud and ... READ MORE

Tag(s): Cloud, Data centers, Earnings, M&A, R&D, Telcos, Content/video

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Comtech Expects Flat 2018; US Market An Issue?

Posted by Matt Walker  on October 4, 2017

If you follow telecom closely yet haven’t heard of Comtech, that’s no surprise. Acquisition of TCS in 2016 doubled the company’s size Comtech Telecommunications Corp. is far smaller than the biggest vendors in the  market (Huawei, Ericsson, Noki... READ MORE

Tag(s): Earnings, M&A, Mobile broadband, Telcos, Transmission

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China Mobile To Go (More) Global?

Posted by Matt Walker  on September 29, 2017

Buying opportunities During the 2008-9 financial crisis, some wondered (including me) if the relatively flush Chinese operators would use the downturn as a buying opportunity into overseas telco markets. China Mobile seemed promising, given its (now even higher) cash r... READ MORE

Tag(s): Capex, M&A, Mobile broadband, Telcos

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Cloud R&D And Network Investment

Posted by Matt Walker  on September 24, 2017

A little accounting background: To expense or capitalize R&D There’s an ongoing debate in accounting circles (yes, they argue) about whether R&D spending should be expensed or capitalized. Under US GAAP, R&D is expensed. Another set of reporting stan... READ MORE

Tag(s): Capex, Cloud, Data centers, R&D, Telcos

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Alibaba's revenue growth from cloud rises steeply, as it looks to outdo Amazon and Microsoft

Posted by Matt Walker  on March 5, 2018

Top US-based tech providers Amazon, Alphabet/Google and Microsoft dominate the cloud space but they are set to face stiff competition from China’s leading cloud provider Alibaba.MTN Consulting tracks these and similar operators of webscale (aka hyperscale) cloud networks as par... READ MORE

Tag(s): Capex, Cloud, Data centers

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Facebook’s Plan To Design Its Own AI Chips Has Set Alarm Bells Ringing For Qualcomm, Nvidia And Intel

Posted by Matt Walker  on May 30, 2018

[Ed. note: see Sept. 2018 publication, Webscale Network Operators: 3Q18 Market Landscape] Rumors about Facebook’s likely entry in the hardware segment were put to rest after the company posted job openings for chip designers. Facebook was looking for candida... READ MORE

Tag(s): Capex, Data centers, Webscale/Hyperscale, Artificial intelligence (AI), R&D, Chips

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Content cost crunch on the horizon?

Posted by Matt Walker  on September 20, 2017

BackgroundFor several years, the telecom industry has faced a slow-growth climate. Telcos have adapted, cutting short-term costs as they position for longer-term cost reduction with efforts virtualization & software-defined networks. Most telco execs seem relatively confid... READ MORE

Tag(s): , M&A, Cloud,

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Facebook stepped in it this time

Posted by Matt Walker  on November 15, 2018

Whether you've joined the #deletefacebook camp or not, it's hard to deny that Facebook has dug a deep hole for itself this time. Yesterday's NYT report was a harsh assessment of the company's trustworthiness. It's worse when combined with the late September news that F... READ MORE

Tag(s): Capex, Data centers, Webscale/Hyperscale

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