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NVIDIA and Softbank Developing AI-Based 5G MEC Telco Network

NVIDIA and Softbank recently announced that they had developed a dual-purpose AI-driven 5G MEC and vRAN distributed platform based on NVIDIA’s new GH200 Grace Hopper superchip. The two partners intend to deploy a network of regional data centres across Japan later this year to capitalize on the demand for accelerated computing and generative AI services. The shared multi-tenant platform will also offer a range of 5G vRAN applications and Softbank is creating 5G applications for autonomous driving, AI factories, augmented and virtual reality, computer vision and digital twins.

Key Takeaway No. 1: Platform Limitations

Softbank is offering a dual-purpose platform where the main application is AI compute via a high-performance edge analytics platform to capitalise on the expected surge in demand for AI processing capacity. Although the company is also developing a range of 5G applications, the AI and 5G workloads will be offered simultaneously. Counterpoint Research believes that the platform is unlikely to be feasible for vRAN workloads alone and understands that the two partners are not targeting this market.

Key Takeaway No. 2: Leveraging GPU Usage in the RAN

NVIDIA is planning to leverage its GPU processing capacity in the RAN in a number of ways, for example, to improve spectral efficiency. One way of doing this is to apply AI to optimise channel estimation feedback data between a user device and a base station. A compute intensive problem with mMIMO radios, using AI to compress receiver feedback data would reduce signalling overhead, thereby resulting in an useful increase in uplink channel capacity. This could be particularly effective at the edges of a cell. Using its GPUs in this way, NVIDIA claims that it can boost gain for cell edge users by 14-17 dB. Other applications include using AI to optimise beamforming management in millimetre wave mMIMO radios as well as to accelerate Layer 2 scheduling.

The full version of this insight report, including a complete set of Key Takeaways is published in the following report, available to clients of Counterpoint Research’s5G Network Infrastructure Service (5GNI).

New Report: NVIDIA and Softbank Join Forces To Deploy AI-Based 5G MEC Telco Network Across Japan

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NVIDIA Softbank Join Forces

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Table of Contents:

Snapshot
Key Highlights
– 5G MEC Telco Network
– Grace Hopper Superchip
– Leveraging Software Resources
– Performance Details
– Use Case and Deployment Options
– Key Partners
– Competitors
Analyst Viewpoint
– Platform Limitations
– Benefits of RAN-in-the-Cloud
– Eliminating RAN hardware dependency
– The Intel vs ARM battle
– Leveraging GPUs in the RAN
– A Crowded Market

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MWC-22 Las Vegas: Samsung Networks Makes Breakthrough In US Cable Market

Samsung Networks hit the headlines at MWC in Las Vegas with news of its first major contract with a US cable operator. The Korean vendor will provide 5G connectivity for Comcast across its 600 MHz and CBRS spectrum bands, which will include deployment of its new Strand small cell radio (Exhibit 1), developed specifically for the cable market in conjunction with Comcast.

Samsung Networks – Open RAN/vRAN Leader?

Samsung Networks first entered the mobile infrastructure market, primarily as a 4G network infrastructure vendor, around ten years ago. Since then, it has developed a portfolio of 4G and 5G products, with a major focus on the open RAN/vRAN based market. Counterpoint Research believes that Samsung is the undisputed leader in this emerging market at the present time, having won multi-billion dollar contracts with several major MNOs, including Verizon, Vodafone and most recently Dish.

However, Samsung is not just focused on the emerging open RAN/vRAN market. At the recent MWC event in Las Vegas, the vendor outlined its mobile infrastructure strategy to industry analysts, which encompasses targeting the cable and regional MNO markets in the US (and elsewhere), as well as the private networks market.

Samsung Strand

Exhibit 1: Samsung’s Strand 2TRx Small Cell Radio

The CBRS Market

The CBRS service provider ecosystem encompasses a diverse set of mobile and fixed operators as well as a host of enterprises and other organizations building their own private networks.Samsung sees opportunities in multiple CBRS markets, including the following:

  • Cable Market– cable operators made significant investment in CBRS spectrum back in 2020. However, they are only now starting to build their networks, typically offloading MVNO traffic in selected high-traffic regions, rather than building out nationwide mobile coverage.
  • Regional Operators– driven by digital divide stimulus funds from the US government, the rural broadband market will be a major opportunity during the next few years with many regional operators seeking to launch rural FWA services.
  • Private Networks– as well as private networks deployed by traditional mobile service providers, Samsung sees opportunities in serving a diverse range of customers in the CBRS band ranging from enterprises, schools and universities to industrial companies involved in energy and utilities, manufacturing, transportation and logistics, etc.

Key Takeaway No. 1: The Disruptive Incumbent

Samsung is a challenger vendor and sees an opportunity to disrupt the status quo. As the smallest of the Big 5 in terms of market share, it has less to lose by introducing open RAN based networks compared to rivals. And in contrast to many smaller, open-RAN only players, its can offer legacy as well as open RAN technology. With its own chip and foundry businesses – plus access to considerable technical and financial resources as part of a $260 billion cap industrial conglomerate – it is regarded as a reliable alternative to Ericsson and Nokia by many MNOs. However, with major rivals expected to launched “similar” products in 2023, the open RAN/vRAN market is set to become much more competitive.

Key Takeaway No. 2: CBRS Early Mover Advantage Paying Dividends

Samsung launched its first FCC-certified CBRS mMIMO radio in July 2019. Since then the vendor has developed an extensive range of CBRS radios, including products developed specifically for the cable and FWA markets. As a result, Counterpoint Research expects Samsung to benefit further from similar opportunities from other cable operators to complement its recent Comcast Xfinity Mobile win.

Buoyed by multi-billion dollar FCC funding, the rural FWA market is likely to be another major opportunity. Although there will be stiff competition from its Nordic rivals (plus some smaller vendors), Counterpoint Research believes that the Korean vendor is also well placed in this market, due primarily to its early mover CBRS advantage and backed by its growing reputation and track record as a reliable alternative to other incumbents in this market.

The complete version of this article, including the full set of key takeaways, is published in the following 5G Vendor Report, available to clients of Counterpoint Research’s 5G Network Infrastructure Service:

Samsung Outlines Mobile Networks Strategy at MWC, Las Vegas

Table of Contents

Snapshot

Introduction

Key Target Markets

Strand Small Cell Radio

Key Cable & Regional MNO Customers

-Comcast

-Mediacom

-Mercury Broadband

-Avista Edge

Key Takeaways

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Rakuten Mobile – Time To Show That Disruptive Networks Can Deliver Disruptive Profits?

The uphill battle for Intel commences with its first earnings of 2022

Intelentersa year where Moore’s law has considerably slowed, supply chains are constantly under pressure from various macro and micro factors, PC demand corrects from the pandemic induced highs and growth rally momentum comes from mostly Cloud, Automotive and 5G.

Counterpoint Research Intel Revenue Chart

  • Intel reported revenue of $18.4B, a decrease of 7% YoY, gross margin was down 4.8% YoY to 50.4%
  • Client Computing Group (Notebooks and Desktop) was down 13% with Notebook Revenue declining significantly by 14%
  • Datacenter & AI Groupremained the key growth segment for revenues for company with 22% YoY growth in revenues supported by Network and Edge Group with 23% YoY growth, Accelerated Computing & Systems with 21% YoY increase and Intel Foundry Services up by 175%
  • Foundry capacity and Equipment to remain tightened till 2024

Segment Reports:

Counterpoint Research Intel CCG Revenues

Client Computing: Consumer and Apple headwinds chip away $1.4B from the Client Group

Thedesktoprevenuesstood at $2.6B andnotebookrevenues were at $6.0B indicating a decline of 5% and 14% YoY respectively. The decline was majorly attributed to inventory digestion cycle and demand waning due to Covid-driven situations. Ramp down on Apple CPU and modem business in addition to muted demand from education market segment contributed to the significant decline in revenues.

The only offset came from increased ASP pricing across segments with 32% increase in Notebooks and 7% increase in Desktop segment.

  • The Client computing group will see muted demand for the year because of the inflationary environment, supply chain constraints and inventory realignment by OEMs to reflect the intrinsic demand minus the Covid induced spike.
  • Gaming and Enterprise Tech Refresh are the two trends that will help the group revenues to surf and stabilise.
  • The product roadmap in later half of year will see intensive competition due to Raptor Lake and AMD Ryzen 7 hitting the markets.

Datacenter and AI (DCAI) proves to be The Revenue Guard for year 2022

DCAI Intel 2

DCAI revenue was up $1.1B or 22% at $6.0B due to continued demand from Hyperscalars and Enterprises. Hyperscalars are continuing to invest in DC infrastructures to enable their Metaverse ambitions whilst Enterprises are expanding and upgrading their infrastructure to sustain the data generation and providing analytics that is fast becoming a necessity from consumers.

Intel FPGA基于IPUs也是导致签证官的增长lume adoption is present at the major cloud players and the demand continues from peripheries including Networking and Automotive DCs.

A 3% ASP decrease was observed in segment and 26% volume increase due to product and customer mix indicating majority of sales from Intel Xeon Silver/Bronze.

We think that majority of sales went to enable the ‘Edge’ infrastructure.

  • This is the year of Datacenters and Cloud as reinforced by every chip and cloud company in their revenue forecasts. The demand will be coming from Hyperscalars, and Enterprises expansion accelerated by the supercomputing efforts from the companies, SaaS adoption and cloudification of consumer services.
  • Company’s Edge to Cloud chip portfolio offerings will help capturing the demand coming from the Edge and Networking market as 5G network deployments and MEC becomes more widespread
  • With the acquisition ofGranulate(SaaS service that improves performance in cloud costs with its autonomous dynamic optimization service to unmodified customer workloads) – the company’s SW stack combined with HW would provide additional revenue streams

Network and Edge (NEX) segment rolls due to the ’Edge’ Expansion

NEX revenue was $2.2B up 22% YoY. Demand drivers for the segment came from cloud networking hardware and software tools.

  • The networking segment will strengthen as company has focused on launching silicon for software defined infrastructure –vRANandORAN为净work and Edge capturing the upcoming high-volume deployments from operators
  • Upcoming Sapphire Rapids can prove to be a breakthrough for Intel to establish its leadership as it claims to deliver up to two times capacity gains for vRAN and support advanced capabilities like high-cell density for 64T64R Massive MIMO

Accelerated Computing Systems and Graphics (AXG) revenue is at $219M

Intel marked its foray into Discrete Graphics with its Intel A series of mobile GPU which was launched in Spring this year. The Desktop GPU are expected to be launched in Market this summer. Company is expecting to do $1B+ business this year as it scales the range at Data Centre level with Ponte Vecchio.

  • Intel is entering highly competitive market whereNvidiareigns supreme. The company has launched only one Variant – Intel ARC for Mobile so far with 50+ design wins. The variant has performed well but it will take more time for Intel to get the mind share and the wallet share it is expecting! The other variants would be launching this summer and we sincerely hope that Intel promises on the momentum it has indicated for its AXG business.
  • The launch of Blockchain accelerator would help in capturing the peripheral accelerator business which is dominated by mostly DIYs or Nvidia
  • The resonance of synergies from having its own CPU+GPU+I/O and in-house foundry coupled with its proprietary SW technologies – Evo & XeSS would help Intel to produce inspiring performances from devices because of component efficiencies in the long run.

Mobileye logs record revenues at $394M

Mobileyegrew 17% YoY to have its best quarter in earnings. The company has successfully demoed L4robotaxiin Jerusalem and grew its number of testing sites to 10 cities across 3 continents with addition of Miami and Stuttgart. The commercial robotaxi services will commence at the end of 2022 in Munich and Tel Aviv.

  • The much-awaited IPO might debut later this year but Intel has so far kept to its delivery and promise schedule regarding Mobileye products
  • 收入可能会看到一个相当大的美籍西班牙人e later this and early next year as the consumer and commercial L4 vehicles entermass production

IntelFoundry Services(IFS) is on a promising start with $5B in deal value across nodes

The revenue of IFS was $283M. The team has 10 opportunities for its process and package offerings representing over $5B in deal value. The team has over 30 test chips for Intel 16 and is expecting Intel 3 and Intel 18a customer test chips to tape out later in 2022.

From foundry perspective the progress looks very optimistic considering on Intel 4, Meteor Lake has successfully booted and pre-production wafers have commenced on Intel 3.

The company also commented that it has enough substrate and Fab supply to meet customer’s demand.

  • The behemoth task of delivering 5nodesin 4 years remains the crucial aspect to Intel for its every business. So far it looks like everything is going good for them but as the tape-outs occur for Intel 7 we would have better visibility on the yields.
  • Considering the past, we are cautiously optimistic on the outcome on the node delivery as theWafer Equipment manufacturershave started flagging the delivery timelines.

ESG Commitment Updates:Intel announced initiatives to reduce its greenhouse gas emissions and develop more sustainable technology solutions by identifying greener chemicals, new abatement equipments, including using 100% renewable energy across their global operations by 2030 by investing $300M to achieve 4B KWh of energy savings and achieving net-zero greenhouse gas emissions in their global operations by 2040.

Outlook for Q2 2022

Company is expecting $18B for Q2 2022, a 3% decrease YoY as the inventory burns happen and the company readies itself for inventory reversals due to launch of Raptor Lake and Sapphire lake. But for Q2 the client computing will remain muted due to the macro factors heavily influencing consumer sentiments.

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