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- Jason's Industry Insights - Issue #38
Jason's Industry Insights - Issue #38
Weekly IP Technology, Space, and AI Market Intelligence.. and some other stuff.
Jason Presement
September 27, 2024
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This week:
🌎 What’s Happening on Earth
🪐 What’s Happening in Space
🤖 Enabling AI
🍳 This and That!
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This Weeks Issue
What’s Happening On Earth?
Nokia is positioning itself as a competitive player in the data center market, leveraging its SR-Linux platform and automation capabilities to rival established data center operators. By integrating cloud-native tools and focusing on AI-driven network management, Nokia aims to simplify data center operations and improve scalability. The company’s recent efforts suggest it is making a serious bid to become an alternative in this space, particularly as businesses seek more cost-effective and efficient infrastructure solutions.
My Take: Mike Bushong is a smart guy. The Data Centre space continues to be on fire. They just need to get past the “status quo”.
Danis said that, based on public data, there are about 1,900 small fiber companies in the U.S. But about 1,000 of those are electric co-ops or they’re linked to energy players. The remaining 900 are either owned by private equity firms or are small start-up fiber companies.
“Every single one which is bought by private equity is available to be bought,” he said. That’s because PE is already getting impatient with the slow pace of reaching profitability in broadband, and it’s always looking for a good exit.
My Take: ..especially if they have funding dollars attached to them? Consolidation is just a matter of time, as it was (and will likely continue to be) north of the border. Perhaps the slow pace to profitability means someone will be getting a deal!
Quebec is suing Digicom and PomeGran for $16.2 million. This sum represents over-subsidies paid for high-speed Internet deployment projects in the province. As of March 31, 2024, according to the Department of Justice, Digicom had only connected about half of the approximately 9,000 homes targeted.
NOTE: The original article was translated from French with Google site translation.
My Take: But does the money get redeployed? Will the customers who ended up with Starlink under the subsidy plan ever get FTTH, as planned? This also underscores my earlier suggestions that some sort of dashboard showing the progress of all funded builds, whether Federal or Provincial, is necessary for public accountability.
Spending on telco infrastructure is declining. Telcos don’t know how to find new revenue. Enterprise network spending is also under pressure, and in particular spending on new technologies or on new projects that could lead to higher spending down the line. Open technology is more and more an argument rather than a property, and many of the theories on how to reap its benefits, for telcos or for enterprises, seem to be proving false. What’s going on here? A bunch of stuff, some unrelated to others, but all combining to set us in a new trajectory.
My Take: Telco’s need to find a way to get into the OTT value-chain as well as new content and experience services. The network is just the means to the end.
The approach being explored is not yet symmetrical. Sources familiar with the plan say the initial focus is to pair a 25Gbit/s-capable downstream with an upstream that could deliver at least 5 Gbit/s upstream, with the potential to push that further as the technology is optimized.
My Take: When do you just call it a day and move to fiber?
Speed of course is “still a very important segmentation tool” for operators, he said at an SCTE Cable-Tec Expo panel. But in Rogers’ perspective, the broadband market is shifting to “really start to focus” on reliability, as customers say they value an interruption-free connection the most. And it doesn’t stop there.
My Take: You mean it wasn’t before? Who’s going to be the first to shift the narrative away from price/bit? I think the market assumes reliability and the real demand is for new and differentiated services.
Charter Communications, in partnership with CableLabs, launches Bryte IQ, a Network-as-a-Service (NaaS) platform for Charter’s wired and mobile networks. Bryte IQ APIs adhere to CAMARA-based definitions, providing developers with network access and the ability to innovate on their consumer experiences with the power of the Charter network.
My Take: This is pretty interesting. Something like this would undoubtedly help the TPIA providers in Canada and open up some great open-access opportunities.
As the 6G vision progresses, experts highlight trends like AI integration, Open RAN, and “digital-physical fusion” through advanced sensing. 6G is expected to enhance real-time digital twins, robotics, and connected vehicles, but challenges remain, particularly around energy efficiency and spectrum availability. With applications still evolving, the next 18-24 months will be crucial for shaping 6G’s development and market adoption.
My Take: We expect everything that everyone thought 5G would do, don’t we?
What’s Happening In Space?
What’s in Space This Week?
Canada is positioning itself as a key player in the space industry, leveraging its rich technological expertise and geographic advantages. With companies like MDA leading cutting-edge satellite and robotics technologies, Canada aims to play a crucial role in global space exploration, communications, and Earth monitoring. These advancements could boost its economic influence and strategic importance on the world stage, as space becomes a critical frontier for scientific progress and national security.
My Take: The Arctic. That’s where Canada should be leading the charge.
Starlink satellites, launched by Elon Musk’s SpaceX, are causing issues for astronomers. A new study, published Wednesday in Astronomy & Astrophysics, highlights the growing problem.
My Take: Telescopes in space, past the satellites. Why is that a problem?
Xplore, a rural internet provider, faces legal battles with satellite companies like Telesat and Hughes after defaulting on millions in payments. Despite receiving a court order protecting it from lawsuits, these companies are seeking full repayment or permission to cut services. Hughes is even pushing for bankruptcy proceedings. Xplore, struggling with rising interest rates and competition from Starlink, aims to restructure its debt while continuing to serve satellite customers, but negotiations with creditors remain tense.
My Take: A great read from Ahmed at CARTT. Interesting story with a not-so-happy ending, so far. Maybe Elon could come in and save the day, or Kuiper could have an instant customer base in Canada. Either way, if I’m reading it properly, it’s gonna be a while until this is resolved.
The Canadian Space Agency (CSA) has awarded $776,000 to Reaction Dynamics to demonstrate an eco-friendly satellite de-orbiting propulsion system. This technology, a microthruster, enhances satellite maneuverability for tasks like collision avoidance and re-entry, while lowering environmental impact. The project, funded under the CSA’s Space Technology Development Program, aims to make space missions more efficient and sustainable, potentially paving the way for future commercialization.
Cool microthruster
My Take: Enhanced agility is supposed to make all the difference. They’ll all burn up at some point, so I’m not sure I get the sustainability side of things.
Spanish satellite IoT startup Sateliot has secured $33 million in a Series B funding round, led by Global Portfolio Investments. The funds will be used to expand its low-Earth orbit (LEO) satellite constellation, aiming to deploy over 100 satellites by 2028 to provide real-time global 5G IoT connectivity. This investment marks a significant boost for Sateliot, which plans to cater to industries such as agriculture, logistics, and energy, with commercial services expected to launch by early 2025. The company already boasts contracts to connect millions of devices across 50 countries.
My Take: What ever happened to LoRA? Oh, yea. It will be replaced with space-based solutions. They have contracts with 400 clients, so it says. How will the terrestrial providers partner with them?
Iridium is also planning an NB-IoT service.
My Take: “One of the greatest inventors of our time”.. but not flashy.
Enabling AI
And for a change, the highest spending growth is in the underlying infrastructure rather than in cloud services. “For a long time now the growth rate in cloud services has far outpaced growth in spending on cloud datacentre infrastructure, but that has temporarily switched around, driven by heavy investments in generative AI technology,” according to the Synergy Research team, as the growth in combined spending on IaaS, PaaS and SaaS services hit 21% while investments in public and private cloud datacentre infrastructure grew by 30%.
My Take: So much infrastructure building going on right now with investments in Canada, the UK and elsewhere. The demand for fiber splicers will be felt across the industry. The demand for power will drive some cool innovations.
Telecom companies are increasingly adopting AI to improve operations, customer service, and network management. However, the shift brings significant challenges related to data management, scaling, and the need for robust governance frameworks. With the rise of autonomous networks and AI-powered tools, telcos must navigate integration difficulties and a shortage of skilled professionals. As telcos move from experimental phases to scaling AI use cases across customer care, field operations, and marketing, responsible AI governance becomes crucial to ensure ethical, efficient implementation. Industry leaders like Google Cloud emphasize the need for a common platform to streamline AI deployment while balancing innovation with privacy and security concerns.
My Take: Responsible and effective implementation of AI.
…more than half of the telecom and IT engineers surveyed reported that they thought the use of AI would improve network operational efficiency by 40% or more—let’s call that the “AI for the network” aspect. But when asked about the needs of the other aspect, “the network for AI”, nearly all of the respondents—99%—said that they believed fiber network upgrades will be required in order to support more AI traffic.
My Take: Well, sure. Bandwidth will be required to support all the traffic to the massive data centres being build to support the demand, but that doesn’t mean “AI for the Network” is in the critical path. I think these are mutually exclusive requirements.
If you’re looking for solid, actionable learning around AI agents and Automation, check out https://www.sabrina.dev/.
My Take: So much great content, including a multi-part “ChatGPT” for beginner series, and complete prompt libraries!
This and That!
Working from home is not a new arrangement for Canadians. According to Akyeampong (1997), 6 percent of employees regularly did some or all of their paid work at home in 1991, and this rose to 9 percent in 1995. According to Statistics Canada (2024), 7.1 percent of Canadians usually worked most of the time from home in 2016. In the spring of 2020, however, public health measures taken to reduce the spread of COVID-19 resulted in record numbers of Canadians shifting into work-from-home arrangements. As a result, many workers may have been pleasantly surprised by their ability to work from home and remain productive (Barerro, Bloom and Davis 2021). In Canada, evidence suggested most workers who shifted to work-from-home arrangements preferred to continue with hybrid arrangements after the pandemic was over (Mehdi and Morissette 2021).
My Take: Read the report. End of the day, still many businesses who want people back in seats to support collaborative work environments. Trust. Management. Productivity. Three things to make it work. There is, of course, the out of sight, out of mind perspective.
When a person (or monkey) is facing stakes that are too high, the stress can interfere with neurons, affecting how they direct the body to execute movements, a study suggests.
My Take: Go, Leafs, Go!
The article “The Gaming Opportunity: An Investor’s Perspective” on Substack explores the potential of the gaming industry from an investment standpoint. It highlights the sector’s rapid growth, driven by advancements in technology, increasing user engagement, and the rise of esports and mobile gaming. The piece outlines key trends shaping the market, including the expansion of virtual worlds and monetization models like microtransactions and subscriptions, making gaming a promising opportunity for investors.
My Take: Seems this has been an opportunity for a very long time, yet who has successfully monetized it?
Infographic Of The Week
My Take: I guess they have other shiny things to worry about.
Additionally, initiatives such as this are helping to calm people’s fears and replace (read “help”) parenting - 😉 — See Introducing Instagram Teen Accounts: Built-In Protections for Teens, Peace of Mind for Parents
Podcast Recommendation
While telco opex dropped in 2023, the biggest contributor were divestments, which isn't ideal because service providers are selling business segments, explains Omdia's Adam Mackenzie.
How AI is impacting telco headcount (03:34)
How service providers are using AI investments to appear more energy and cost efficient (16:27)
Impact of 5G and fiber deployments on telco opex (21:36)
Listen Here!
Movie/Streaming Recommendation
The Green Mile (1999)
IMDb: 8.6/10
JMDb: 9/10 (which is why I keep re-watching it..)
"The Green Mile," a 1999 film directed by Frank Darabont, is a powerful adaptation of Stephen King's novel. Set in a Louisiana prison during the Great Depression, the story follows Paul Edgecomb (Tom Hanks), a death row guard who encounters John Coffey (Michael Clarke Duncan), a gentle giant with supernatural healing abilities.
The film masterfully blends elements of drama, fantasy, and social commentary. As Paul discovers John's extraordinary gift, he begins to question the convicted man's guilt and the morality of his impending execution. This central conflict drives the narrative, exploring themes of justice, compassion, and the complexities of human nature.
Darabont's direction creates a palpable atmosphere of tension and wonder, while the ensemble cast delivers nuanced performances. Michael Clarke Duncan's portrayal of John Coffey is particularly noteworthy. He balances vulnerability and strength in a role that earned him an Academy Award nomination.
"The Green Mile" doesn't shy away from complex subjects, including capital punishment and racial prejudice. However, it approaches these topics with sensitivity and depth, encouraging viewers to contemplate complex moral issues,
At three hours long, the film is a significant time investment, but its deliberate pacing allows for thorough character development and a richly detailed plot. The result is a thought-provoking and emotionally resonant experience that lingers in the mind long after viewing.
If you haven’t watched it, make some time to do so!
Until Next Time
Comments here are my own and do not represent the opinions, views or thoughts of any person, company or organization that I may be associated with.
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