Boingo Wireless saw its second quarter revenue decrease more than 14 percent year over year and 2 percent compared to the first quarter of 2020. However, net cash provided by operating activities increased 45.3 percent compared to the first quarter of 2020 and increased nearly 200 percent year over year. Additionally, adjusted EBITDA increased by double digits.
“The sequential decline in our revenue was largely related to our legacy businesses, specifically advertising and retail, which were impacted by the historic downturn in passenger travel due to the COVID-19 pandemic,” said Mike Finley, Boingo CEO. “Importantly, our team has done an excellent job managing expenses, which led to a 13.7 percent increase in adjusted EBITDA over the first quarter of 2020 to $21.3 million.”
DAS revenue of $22.2 million modestly increased compared to the first quarter of 2020 and decreased 19.6 percent compared to $27.6 million in the second quarter of 2019. Buildout project revenue totaled $14.0 million and access fee revenue and $8.2 million.
“As the pandemic has demonstrated, wireless connectivity continues to play an increasingly critical role in our daily lives,” Finley said. “This need for connectivity demonstrates Boingo’s resilience as an essential business as well as the durability of our business model. Despite the challenges presented by COVID-19, we see velocity in our business continue with new wins in all key verticals including: three new DAS venues, 11 carrier contracts, a Wi-Fi offload trial with Google, four multifamily venues, and bulk-services and macro cell towers on military bases.”
Q2 contract wins
As of June 30, 2020, Boingo had a total of 73 DAS venues live comprised of 40,500 DAS nodes and an additional 11,100 nodes in backlog. This compares to 69 venues live comprised of 35,200 nodes as of June 30, 2019.
Navigating the complicated business environment caused by COVID-19 is not easy for neutral-host DAS and communications infrastructure providers. But thanks to the pent-up demand, expertise and some fancy footwork, ExteNet has still announced a number of recent wins this spring, keeping its crews busy.
In May and June, it extended its neutral host in-building DAS networks at the recently opened Reach building within the campus of the John F. Kennedy Center for Performing Arts in Washington, D.C. where it already has a multi-carrier network and at two office buildings in Philadelphia-One Penn Center and 1515 Market St. Additionally, Citizen Broadband Radio Service (CBRS) networks were deployed for RTO Wireless, which provides mobile voice and data, broadband, backhaul, and IoT for rural markets in the North-East states, and Cal.net which focuses on enabling connectivity and bridging the digital divide in rural California.
We spoke with Tormod Larsen, chief technology officer, and Greg Spraetz, SVP of real estate solutions, to get an update on ExteNet’s progress and how it is weathering the pandemic. Tormod has been with ExteNet since 2004 and oversees product strategy, network architecture and strategic solution development while Greg oversees all in-building sales activities.
How have the municipalities dealt with the pandemic and what was the effect on your business?
Larsen: I would say that the environment was different and somewhat unique in each city. Although some of the municipalities were impacted more than others, we were able to achieve a lot because wireless infrastructure was deemed essential in jurisdictions. We are glad to see things beginning to stabilize now and businesses opening up once again.
On the deployment side of things, both indoor and outdoor, we have found that the pandemic and all the restrictions that came into play meant that our deployments just needed closer management. With construction crews being prioritized owing to its “essential services” categorization, we were able to remain on site to a large extent. On the indoor side, access to some buildings were closed during the peak of the pandemic but we gained access relatively soon. There are several in-building deployments for mobility and fiber solutions we can point to where we had short term closure but resumed activities soon after, while there are many situations where network construction continued without much disruption.
How has ExteNet reacted to the pandemic?
Larsen: We prioritized the health and safety of our employees and contractors and ensured our staff had access to PPE [personal protective equipment], followed newly established safety protocols, and took extra precaution in everything affecting our communities. We became more efficient in many ways, often learning to do more with less. Optimizing our processes and building efficiencies were majorly emphasized. Our crews are working collaboratively with others, achieving more in single visits to the sites and inherently avoiding risks and exposure.
What about deploying DAS in venues where the seasons had been canceled or postponed?
Spraetz: It was easier working on systems in some sports and entertainment venues where the season and internal operations had come to a virtual halt. Some of those venues were transformed to makeshift hospitals and testing centers, so we had to convert the existing wireless system to a different use case to assist the frontline workers. But we have also had to work through situations where some venues were temporarily shut down. Overall though, we are back on track now and upgrading the networks including transitioning to 5G in many venues.
Are there vertical markets where you are forecasting growth coming out of the COVID pandemic?
Spraetz: A key vertical where we are seeing new opportunities is healthcare. The carriers and others are prioritizing mobile and fiber connectivity in these facilities. The pandemic highlighted the need for mobility infrastructure and underlying fiber connectivity to serve caregivers, first responders, staff, patients and their families. The commercial real estate market will also need to adapt to social distancing measures inside the building while upgrading their facilities to touch-less access with mobile connectivity being a key enabler. Building owners need to increase their occupancy and connectivity will become an increasingly important amenity. We also see uptick networks being deployed in suburban and second-tier markets as people and businesses increasingly adapt toremote work. Rural networks will be prioritized as bridging the digital divide by providing high-speed and affordable connectivity for the underserved will be an ongoing focus.
How has the pandemic changed use of the communications infrastructure?
Larsen: The wireless industry has stabilized at about 25 percent increase in capacity. Both mobility and fiber requirements will continue to increase as the bandwidth used and speed requirements will continue to grow exponentially with video, collaboration tools, augmented reality (AR) and virtual reality (VR) becoming mainstream in many verticals. There is also a change in traffic origination expected with an increasing number of people working remote, being educated at home, and the location of use moving from the urban centers to the suburbs. This changing traffic pattern is resulting in an increasing load on data centers requiring high-bandwidth and low-latency fiber connectivity. Applications are now residing more in the cloud with some research indicating that by next year roughly 90 percent+ of all enterprise workload will transition to the cloud, leading to an even higher need for fiber connectivity with purpose-built networks.
How are enterprises evolving in their data infrastructure?
Spraetz: While reports show vacancy rates in some office buildings increasing to 20 percent owing to the pandemic and some companies embracing remote working for some staff members in the longer term, we are still early in the assessing full impact on the commercial real estate market. As enterprises gauge and assess their on-premise staffing requirements for the short and longer term, they are definitely transitioning their applications to the cloud or to an offsite data center to improve their network operations and drive efficiencies. We firmly believe that while the network architectures will evolve, the underlying demand for advanced mobile and fiber connectivity will continue to rise as the enterprise data and video usage will continue to grow exponentially.
You recently completed a neutral-host DAS network at 1515 Market Street in Philadelphia, a 20-story, Class A, 500,000 square foot building. You also deployed a DAS at Philadelphia’s One Penn Center, a 670,000-square-foot Class A commercial office art deco building. What are the trends for DAS in the enterprise?
Spraetz: We are seeing an uptick in deployments in the middleprise building market. The carriers are looking at this from the network perspective and where they need to offload traffic. This can also be part of the preparation for 5G deployment, which will demand that in-building coverage is shored up with seamless connectivity for 4G.
Both of these buildings were undergoing major renovations, and building owners were investing millions into the building. At the same time, they were interested in improving mobile connectivity. The awareness of the need for mobile connectivity and fiber is increasing as I have mentioned before.
Historically carriers deployed only in buildings that were more than 1 million square feet, then it dropped to 750,000 square feet and now we are seeing 500,000 square foot buildings become important to carriers depending on their capital allocation and on the size of the market. In these deployments, you see the flavors of the different sizes that we can cater to in different verticals. Today, we target any building of 250,000 square feet and above with a mix of carrier and building owner participation in the funding. However, the need for a neutral-host network is no longer a question as it lends effectively to a multi-carrier setting.
What do you think of in-building wireless systems that use general access authorizations in the Citizens Broadband Radio Service?
Larsen: There are some companies that say CBRS will take care of all the communications needs in buildings. We adopt a more neutral approach and believe in co-existence. Wi-Fi has its role; the public networks have their role and private LTE will have its role in these buildings.
For example, CBRS will have a different role in commercial real estate than it does in a manufacturing plant or a hospital. In manufacturing, private LTE will provide a level of service that Wi-Fi cannot, and it will provide low latency levels that the commercial network may not be able to deliver. CBRS can enable smart building applications and flex-space solutions in commercial real estate.
Wi-Fi may meet tenants’ needs given it’s lower cost but Wi-Fi is quite rudimentary with no service guarantees, mobility and/or voice coverage. However, it’s important to know that private LTE is not as simple as enabling Wi-Fi. With private LTE, you essentially become your own carrier.
The real question with private LTE for an enterprise is whether their IT department is ready to take on a a carrier’s responsibilities as effectively the network owner becomes the carrier. That’s another example of how ExteNet becomes extremely important for the network owner by deliver a carrier-class experience for the private networks, both LTE and 5G.
The National Association of Tower Erectors (NATE) has submitted formal comments to the Federal Aviation Administration (FAA) on the agency’s notice of proposed rulemaking (NPRM) that seeks to require the remote identification of unmanned aircraft systems (UAS) operating in the airspace of the United States, or the ability of people on the ground to determine the identity of an unmanned aircraft in flight. NATE’s submission came during a 60-day public comment period that ends in early March.
Remote identification (or Remote ID) is the ability of an unmanned aircraft in flight to provide certain identification and location information that people on the ground and other airspace users can receive.
According to the FAA, the ability to identify and locate UAS operating in the airspace of the United States would address safety, national security and law enforcement concerns regarding the further integration of these aircraft into the airspace of the United States while also enabling greater operational capabilities. This will become even more important as the number of UAS operations in all classes of airspace increases. In addition, the ability to identify and locate UAS provides critical information to law enforcement and other officials charged with ensuring public safety.
Jim Goldwater, NATE’s Director of Legislative and Regulatory Affairs, said, “NATE is pleased to support the FAA’s proposed rule. It will enhance safety not only for people and infrastructure on the ground but also for airplanes that of course operate in the National Airspace. For NATE and our members, we will continue to be permitted to use UAS for tower inspections, which will enable us to maximize our available workforce at a time when we are experiencing significant workforce shortages.”
Click HERE to review NATE’s formal comments that were submitted to the FAA. Stakeholders interested in reviewing the FAA’s NPRM page and submitting formal comments are encouraged to visit the Federal Register website link HERE. For more information on NATE, visit www.natehome.com.
Dali Wireless filed a pair of patent lawsuits this week. In the U.S. District Court for the Western District for North Carolina, Charlotte Division, Dali filed suit against Corning Optical Communications for the infringement of U.S. Patent Numbers 10,159,074 and 9,769,766 (case No. 3:19-cv-714).
Dali’s patents disclose and claim software defined radio systems that are building blocks for the 4G/5G era in in-building wireless networks. In its complaint, Dali alleges that Corning incorporated technologies covered by Dali’s patents into their SpiderCloud Enterprise Radio Access Network (“E-RAN”) System. Dali has petitioned the Court and seeks injunctive relief and appropriate damages to compensate Dali for Corning’s infringement.
Additionally, Dali filed a lawsuit in the U.S. District Court for the District of Delaware against JMA Wireless for the infringement of U.S. Patent Numbers 10,344,499 and 9,820,171 (case No. 1:19-cv-02367). In its complaint, Dali alleges that JMA has committed, and continues to commit, acts of infringement of Dali’s patents-in-suit. Dali has petitioned the court for judgment on this matter, requesting an injunction prohibiting JMA from making, using, advertising, selling and offering for sale JMA’s TEKO Cell Hub and XRAN server software products, and for monetary damages to compensate for the infringement.
Corning and Intel announced a collaboration to accelerate the availability of 5G in buildings. The two companies will work together to deliver a virtual platform for Corning’s 5G network solutions powered by Intel Xeon Scalable processors and Intel FlexRAN Reference Software Architecture.
“Since the acquisition by Corning, there has been lots on incremental improvements to the architecture of the SpiderCloud equipment,” Art King, director of enterprise services, Corning, told AGL eDigest. “With the 5G announcement, we are merging Corning’s knowledge through the development of the Corning One DAS and on the SpiderCloud side with its RAN knowledge. It is starting to show the synergy and value of the acquisition, pulling them together into one technology platform.”
This effort will create a streamlined path for mobile network operators and enterprise building owners to deploy 5G solutions that meet the performance demands of their customers and enable faster adoption of 5G applications, with the ability to scale from small to large venues and enterprises.
“This environment allows 5G to be added as an easy overlay to the installed system. In the context of 5G as it is being deployed in the United States, it requires LTE and 5G radio together to form the 5G delivery environment,” King said. “The 5G technology can be easily added to the rack. Create the relationship with the 4G equipment in the site and deploy the radios in the building and you are done.
“We have a clear mandate from the carriers and the building owners. They want investment protection of all the money they put into LTE in the last 10 years. We are very much aligned with the requirements to respect what has been done to date and to add 5G incrementally on top,” he added.
The collaboration combines Corning’s wireless connectivity portfolio and Intel’s leading-edge technologies, including second-generation Intel Xeon Scalable processors, Intel FlexRAN 5G and 4G Reference Software, Intel FPGA Programmable Acceleration Card N3000, and 10/25/40Gb Intel Ethernet 700 Series Network Adapters to support 5G.
The collaboration also combines Corning’s fiber, which offers effectively unlimited bandwidth and is protocol agnostic, with virtualization, which converts a traditional hardware challenge into a software-based solution.
“We are collaborating with Intel to essentially virtualize the controller that we use to control the radios to make it suitable for hosting on a server, as opposed to having dedicated appliances,” King said. “In the 5G world, many of the functions performed by hardware will find their way to software. We are moving those processor-intense functions that could drown the processor to a separate piece of hardware to offload the work, providing relief to the main processor handling the overall environment.”
The big impact of virtualization is maintenance. When the server goes down, a standard computer technician can be brought in to swap the hardware and reinstall the software and bring the system back up.
“In the past our telecom infrastructure has primarily been a lot of appliances built by the OEMs,” King said. “We are in this transition to where there is an increasing amount of servers and specialized pieces of software.”
Virtualization allows scalable capacity to be provided at the edge as required by the carrier. “When you convert the operating environment to software, the operator can add edge computing, a 5G controller and other functions and size the computer accordingly to needs of the site,” King said.
The new enterprise platform will be commercially available in 2020. To learn more about Corning’s in-building network solutions, visit: