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This week in telecom news, Verizon announced it has taken the next step in Ethernet services by completing a trial for carrier-grade 100G Ethernet. Meanwhile, the U.S. House of Representatives introduced a companion bill to the U.S. Senate's Wi-Fi Innovation Act bill to increase access to unlicensed 5GHz Wi-Fi spectrum.
The International Data Corporation released its latest report on the public cloud service market, predicting strong growth through 2018. The IDC also named public cloud providers leading the market. Despite global security and privacy concerns, Huawei reported good revenue growth as it moves its focus beyond telecom networking equipment to consumer devices. Read on for more of what you need to know in telecom news.
Verizon trial for carrier-grade 100 Gigabit Ethernet between 100G NIDs
Verizon said last week that it completed a 100 Gigabit Ethernet (100GbE) trial last week, during which 100G of traffic was transmitted for 4.6 miles between two 100G network interface devices (NIDs) and maintained carrier-grade performance. The trial was conducted over the Verizon regional switched Ethernet service network in the Dallas, Texas, area. Splice Communications, a Verizon wholesale customer, provided connectivity to CyrusOne, a data center provider serving as the end user in the trial.
Verizon used the Canoga Perkins 9145E100G CloudBuster for the trial, the industry's first 100G Ethernet NID, a spokesperson for Verizon said.
Verizon chief product officer and senior vice president of corporate technology Guru Pai said Verizon believes the successful 100G trial was a first. "Having 100G network access will be important for business that operate data centers and for mobile backhaul and other service applications," he said.
According to Fierce Telecom, the purpose of the trial was to try to validate 100GbE as an access product, taking it from the lab to a field environment. Verizon has offered 10GbE products for many years, and 100GbE is the next step for Ethernet services. -- Kate Gerwig
House introduces bill to widen Wi-Fi spectrum access
The House has introduced a companion bill to the Senate's Wi-Fi Innovation Act bill to increase access to the Wi-Fi spectrum across the country.
The bill calls for the Federal Communications Commission to test the unlicensed 5 GHz band spectrum to determine if it can be set aside for more wireless devices like tablets, laptops and garage door openers without interfering with current users of the 5 GHz band. The bill is sponsored by House Communications Subcommittee Chair Bob Latta, R-Ohio; House Oversight and Government Reform Committee Chair Darrell Issa, R-Calif.; Communications and Technology Subcommittee member Anna Eshoo, D-Calif.; and Communications Subcommittee member Doris Matsui, D-Calif.).
The growth of tablets, computers and smartphones has placed new demands on that spectrum and the economic impact of unlicensed spectrum use totaled $200 billion in 2013, according to The Hill.
"For three decades, unlicensed spectrum has been the invisible backbone to myriad wireless technologies ranging from Wi-Fi and Bluetooth to garage doors and cordless phones," Eshoo said in a statement. "But in order to unlock the next generation of wireless technology, we need to optimize our finite amount of available spectrum."
While cable providers and the National Cable & Telecommunications Association support the bill, other groups have reservations.
Automakers using the 5 GHz band shared concerns that wider, unlicensed spectrum use threatens to interfere with car-to-car wireless communications, such as car-avoidance systems, according to Broadcasting & Cable.
Global public cloud services market experiences strong growth
Public cloud services revenue reached a global total of $45.7 billion in 2013 and continues to climb, according to the latest IDC public cloud tracker report, which also revealed that the majority of that growth is due to software as a service adoption.
The IDC projects that the public cloud services market will grow at an annual rate of 23% until 2018. By IDC's classification, three major service groups comprise the public cloud services market: software as a service (SaaS), platform as a service (PaaS) and infrastructure as a service (IaaS).
SaaS accounted for 72% of total public cloud services and is expected to grow at an annual rate of 20%. Customers use SaaS for enterprise applications like enterprise resource management and customer relationship management, as well as collaborative applications. System infrastructure software services, like systems management and storage management, drove 21% of the SaaS market in 2013.
PaaS accounted for 14% of the market and is anticipated to increase to 27% by 2018. Spending on PaaS was driven by integration and process automation, data management and application server middleware services, according to IDC.
IaaS was comprised of two segments: server and basic storage. Collectively, these segments comprised $3.6 billion in total spending in 2013. The IDC projects that IaaS will develop further, at a rate of 31% by 2018.
IDC also named market leaders in each service group. Salesforce.com was named the largest SaaS provider, followed by ADP and Intuit. Amazon is the largest PaaS provider, with Salesforce.com and Microsoft not too far behind. Amazon also holds 40% of the IaaS market, while RackSpace, IBM, CenturyLink and Microsoft each have a piece of the overall share.
Criticized Huawei reports 19% revenue growth; smartphone gains
Chinese telecom equipment vendor Huawei reported $21.9 billion in revenue in the first half of 2014 -- a 19% year-over-year increase compared to the first half of 2013, according to BBC News. Beyond telecom network equipment, Huawei is focusing on consumer device sales, including smartphones and wearable technology.
While Huawei didn't provide a breakdown of its smartphone sales, market research firm IDC said Huawei shipped 13.7 million smartphones in Q1 2014, which makes it the third-biggest smartphone vendor in the world behind Samsung and Apple. Huawei's Ascend P7 smartphone is now available in 70 countries.
Huawei is also banking on LTE wireless investments worldwide to further drive its revenue, Huawei Chief Financial Officer Cathy Meng said in a statement. According to Meng, software and services growth helped maintain Huawei's carrier network business as the vendor began a push to sell enterprise networking equipment to businesses that build their own private networks.
Huawei has faced scrutiny in the U.S., UK and other European countries due to its alleged ties to the Chinese government. In 2012, the U.S. said Huawei posed a security threat, but Huawei responds that it is 100% owned by its employees. On the other hand, The New York Times said this year that the National Security Agency had infiltrated Huawei's servers.
Huawei has said that U.S. telecom sales will not be a priority at this time, although the vendor continues to focuses on selling equipment to rural and small tier two and tier three providers. --Kate Gerwig