Telecom is an interesting market space, where the need for huge investments and valuation of companies is highly dependent on the success of technology in this dynamic eco-system. In this blog, I will be looking at the telecom value chain starting top down from the mobile operators via the system vendors to the component suppliers (i.e. companies like Sivers IMA). For most of the mobile operators the share prices have not increased much for many years due to price pressure and lack of high enough revenue and earnings growth. From a “growth market” investor point view, this is maybe not what they looking to invest in, since share price are often quite flat. Many mobile operators are in a mature phase which should be attractive to those who are looking for “safe cash cows”, giving stable dividend yield each year. Below are a few examples of mobile operators from different places in the world: Verizon (US), NTT Docomo (Japan), Vodafone (UK) and Telia (Sweden). Operator name Approx. profit 2017 YoY share price growth 2017 Dividend Yield Verizon 243 billion SEK flat 4,4 % NTT Docomo 117 billion SEK flat 3,68% Vodafone 140 billion SEK +30% 8.27%. Telia 6.6 billion SEK flat 5,84 % This table shows that even if the mobile operators have challenges in growing year on year (YoY), they are making extremely good profits. This gives them all the cash they need to invest in the next generation networks like 5G, as well as buy expensive spectrum licenses without hesitation, to secure their position. Mobile operators in many cases has a quite healthy competition and hence invest heavily in new technology to stay ahead. (Remember this part, since it is important to understand it towards the end of this blog). New technology advancements also offer them new and better networks for the customer as well as lower cost per megabit than the previous generation technology. This is very important for the mobile operators since the end customers (you and me) are not normally willing to pay more for the service each year, we often like to pay less. This is of course very good for the companies at the next level in the value chain, the system suppliers like for example Ericsson and Nokia, which both just recently received +30 billion SEK orders from the US for 5G networks. However, the system suppliers need to develop and invest in new technology (i.e. next generation networks like 5G) long before they can sell any systems, due to this they become cyclic. For example, often before the next generation shift is about to happen they are quite pressured since the older generation’s equipment is sold with lower margins and the next generation has not started to generate enough revenue yet. Looking at Nokia share price during 2017 it was down -15% with a profit around 18 billion SEK and Ericsson share price was quite flat with a loss of -35 billion SEK. This means that now when 5G is staring to happen, it should be quite positive for system suppliers with the most competitive 5G solutions. All system suppliers are more or less dependent on external components to be able to develop their systems. There has been a trend among the systems suppliers within telecommunication to reduce their in-house development and instead buy more and more components externally. In the datacom industry there has, on the contrary, been a race often to move as vertical as possible and own everything. Even so, many of the biggest winners within telecommunication has been the component suppliers. Below you can see some of the major ones from EU and US. Component suppliers Share price over the last 5 years Broadcom Inc (US) +450% Analog Devices Inc (US) +85% Integrated Device Technology (IDTI) (US) +371% NXP Semiconductors (EU) +115% Infineon (EU) +164% Sivers IMAs place in the value chain is as a component supplier, we sell our 5G components to the system supplier that sell to the data- and telecommunication market, or in the 5G case to the mobile operators. We are also part of data communication market (and other markets), where we for example sell our optical semiconductor directly to the companies that builds and run the hyperscale data centers. But that is another blog describing this vertically highly integrated high-growth market. Even if Sivers IMA has been around since 1951, we are today in a sort of a very well-established “start-up phase” regarding our new technology and we are ready to address an explosive growth, within this high growth market. By offering the state-of-the-art components for next generation 5G networks. Summary As you can see the mobile operators are very stable cash cows that need to invest in the next generation technology, the system suppliers are now gearing up for the next cycle (i.e. 5G etc) and we believe this will lead to a very large demand that will be a foundation for further high growth for Sivers IMA and other semiconductor component suppliers. Anders Storm Group CEO Sivers IMA
There have been two major 5G announcements in the Nordic region lately. The first one was the Prime Ministers of Sweden, Norway, Denmark, Finland and Iceland having signed a Letter of Intent committing all five countries to creating the public-sector conditions needed for 5G and digitalization to flourish in the Nordics. A week after this announcement, the European Investment Bank signed a €250 million loan agreement with Ericsson  to boost the vendor’s R&D efforts around 5G. This shows that 5G is becoming a regional competitive edge and a political issue to create jobs as well as staying ahead in the race of innovation, as the Nordic region has been a leader for some time. A research report by the global telecommunications research firm Analysys Mason and Deloitte Consulting establishes for example that China holds a lead in overall 5G readiness, ahead of South Korea and the United States. This illustrates that 5G is not just a new technology, it is much more important. It is also a way of competing between regions, providing the best infrastructure to enable and drive innovation. What’s happening in the Nordics, will for sure strengthen the 5G offering in the region and it will be positive for all companies working within 5G technology and all new innovations this will bring. As you might have noticed, Sivers IMA received funding for 5G development and research from Vinnova and it seems clear there will be more initiatives from the government to support the development of 5G, following the Nordic Prime Ministers’ announcement. As further proof points of the interest in 5G, Sivers IMA has signed agreements with two new 5G product partners in the last couple of weeks. These companies sell equipment all over the world and they are now developing 5G productswhich shows the need for 5G mmWave solutions to support the coming 5G network buildout all over the world. Therefore, we are very optimistic about the Nordic region focusing on 5G, something we believe will lead to increased investments in 5G networks and secure future innovation in the region. Anders Storm CEO Sivers IMA  http://www.eib.org/infocentre/press/releases/all/2018/2018-133-ericsson-finances-research-into-5g-telecom-technology-with-eu-backing.htm?lang=-en
Please see our latest blogpost discussing the best way of addressing the first mmWave use case for 5G, Fixed Wireless Access (FWA). The debate is focusing on how to best create the best link budget for an active electrically beam steered RF system, where companies argue how to reach the right performance.
Read it, reflect on it and if you are engaged, feel free to comment on it.
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Industry is entering a new era where the systems developed during Industry 3.0 (which became smarter through the use of computers and automation) are being connected to each other, leading to even greater efficiency and productivity. This concept, called Industry 4.0, relies on several design principles to further this goal. How can Sivers IMA radar sensors fit into this approach? The first design principle in Industry 4.0 is the one of interoperability, meaning that the machines and their sensors can communicate amongst themselves and their human users using the internet. Moving to a universal communication medium will allow for more responsive and intelligent manufacturing systems to be created, spanning global distances, by using the same ubiquitous network. Sivers IMA radar sensors are well prepared for this requirement as the MCU supports IP communication across a variety of physical layers, allowing the customer to select interfaces such as Ethernet or WiFi via internal hardware or addon cards. Transparency in information refers to the design principle of creating a virtual copy of the physical system being controlled via sensor data; taking the basic low level raw signals generated and aggregating them into a more valuable and contextual whole. The extensibility and flexibility of the Sivers IMA radar platform allows users to easily and quickly generate this raw data. This could be the analog signal from the radar front end for use in a machine learning algorithm. Or it could be information about a target that has already been identified, classified and tagged by the onboard MCU and signal processing. The important feature is that the customer can select whatever level is most appropriate to the application. The third design principle of Industry 4.0 concerns itself with the concept of “technical assistance”, or using sensors and systems to support humans in two ways – in decision making by aggregating and visualizing data, and in physically supporting humans in tasks. Radar can perform a vital role in this context, by providing a highly reliable and non-contact method of generating an understanding of an environment, especially in difficult or hazardous situations, by seeing through rain, fog, and dust. For example, the Sivers IMA RSE02401/00 radar sensor has been designed to detect humans at ranges up to 25 meters – ideal for safety applications where machines and robots are working in close proximity to people. Decentralization of decisions is the final design principle of this new era of manufacturing, and specifically refers to the ability of industrial systems to make decisions autonomously, unless there are exceptions requiring higher order resolution. This level of trust in digital control will require sensors capable of delivering a clear situational picture to which radar is quite well suited, providing a solid state, non-contact technology for measuring presence, speed or distance. Given these general design principles, this next phase of industrial evolution will require capable partners to industry for the development of a new generation of sensing technologies and thinking. Sivers IMA is an experienced provider of such know-how and products, and works with a variety of suppliers in providing innovative and cost-effective solutions. Infineon is one such company and has added Sivers IMA as one of their module partners for 24 GHz radar sensors in their pursuit of new applications and markets, including in Industry 4.0, for their transceiver chips. Sivers IMA is listed on the Infineon website as a provider of engineering, design, and manufacturing services for customers interested in using their RFIC products. The first product released by Sivers IMA using Infineon technology is the EVK02401/00. This evaluation kit uses a single TX/RX transceiver to create a highly flexible reference platform enabling the development of custom-tailored sensor solutions for Industry 4.0. Here you can find more about our Sivers IMA radar technology: https://www.siversima.com/products/radar-sensors/ Here you can find out more about Infineon radar partners: https://www.infineon.com/cms/en/product/rf-wireless-control/mmwave-mmic-transceivers-24-86-ghz/24ghz-radar-industrial/#!partners Alex Vaivars Product manager Radar Sivers IMA
Radar is a highly flexible sensing technology for measuring speed or distance in a variety of applications and conditions.
Being one of the major players within WiGig infrastructure solutions, it has become clear that there are different ways to look upon different solutions and compare them as objective as possible. This blog post intends to demystify, clarify and quantify the value higher performance creates for the total solution.
The Communication and sensor society is a reality. According Cisco® Visual Networking Index (VNI) Global Mobile Data Traffic Forecast  Global mobile data traffic grew 63 percent and the number of mobile devices and connections grew to 8.0 billion in 2016.
We now live in a society which is based on constant communication, access to Internet is as important as food and water. According to the Ericsson mobility report  mobile data usage has increased by about 50% every year since 2011 to 2016, and it will keep on growing exponentially by 10x until 2022. On top of this there is going to be approximately 30 billion Internet of Things (IoT) devices connected to the internet by 2022 (1.5 billion over cellular networks). These numbers are almost unimaginable.
Sivers IMA announced the acquisition of CST Global in April 2017. When we announced the acquisition we also promised to share more details about the optical communication market which is one of several products areas CST Global offers solutions. In this post, we will focus on FTTH (fiber-to-the-home) which is part of the Fiber to the X (FTTX) market.