What’s up with… Intel, AT&T, the FCC

• Intel appoints Lip-Bu Tan as new CEO
• AT&T achieves 1.6 Tbit/s with DriveNets, Ciena et al
• FCC chairman aims to delete regulations, creates security council

In today’s industry news roundup: After more than three months without a permanent CEO, Intel has appointed a semiconductor industry veteran as its new chief; AT&T showcases its network disaggregation progress as it achieves new transport network capacity records; FCC chairman Brendan Carr has kickstarted a significant deregulation initiative; and much more!

More than three months after Pat Gelsinger abruptly vacated the CEO seat at Intel, the giant chip vendor has unveiled semiconductor sector veteran Lip-Bu Tan as its new head honcho, starting on 18 March. He will also rejoin the Intel board, having previously stepped down as an Intel director in August 2024. Tan, who was CEO of semiconductor design technology vendor Cadence Design Systems from 2009 to 2021, will take over at the helm of Intel from interim co-CEOs David Zinsner and Michelle (MJ) Johnston Holthaus, who have run the company since Gelsinger stepped down in early December 2024. Zinsner will remain as CFO while Johnston Holthaus will remain as the CEO of Intel Products. Frank D. Yeary, who took on the role of interim executive chair of the Intel board while the company searched for a new CEO, will revert to being the independent chair of the board from 18 March. “Lip-Bu is an exceptional leader whose technology industry expertise, deep relationships across the product and foundry ecosystems, and proven track record of creating shareholder value is exactly what Intel needs in its next CEO,” stated Yeary. “Throughout his long and distinguished career, he has earned a reputation as an innovator who puts customers at the heart of everything he does, delivers differentiated solutions to win in the market and builds high-performance cultures to achieve success. We are delighted to have Lip-Bu as our CEO as we work to accelerate our turnaround and capitalise on the significant growth opportunities ahead.” Tan noted in the official announcement about his appointment: “I am honoured to join Intel as CEO… I see significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders. Intel has a powerful and differentiated computing platform, a vast customer installed base and a robust manufacturing footprint that is getting stronger by the day as we rebuild our process technology roadmap. I am eager to join the company and build upon the work the entire Intel team has been doing to position our business for the future,” he added. Intel also published a separate blog, authored by Tan, in which he noted: “Under my leadership, Intel will be an engineering-focused company. We will push ourselves to develop the best products, listen intently to our customers and hold ourselves accountable to the commitments we make so that we build trust. I subscribe to a simple philosophy: Stay humble. Work hard. Delight our customers. When you anchor yourself in those three core beliefs, good things happen. This has been true in every job I’ve ever had, and it’s the way I will approach the work ahead as your CEO.” You can read Tan’s full blog here. 

In announcing a breakthrough in data traffic transmission speeds on its network, AT&T has highlighted the ongoing evolution of its long-distance network and provided a blueprint for disaggregated, multivendor transport network infrastructure. The US telco says it has successfully tested technology that can shunt data across optical fibres at the astonishing rate of 1.6 Tbit/s on a single-carrier wavelength, four times faster than the 400 Gbit/s top rate it can manage with its existing systems. The wavelength “carried two 800 Gigabit Ethernet end-to-end circuits, an industry first,” stated the operator. According to AT&T, the trial shows that its network “is ready for massive bandwidth demands driven by AI, user-generated content, augmented and virtual reality, cloud computing, streaming video and more.” Traditionally, the technology used for data transmission comprises integrated, single-vendor systems at each point of the network, but AT&T has been on the path to software-oriented, virtualised network systems for almost 10 years and multivendor, disaggregated platforms are starting to play an increasing role in its networks, enabling the company to use best-of-breed technology. For this trial it used white box switches, powered by Broadcom Jericho3 packet processors, that can provide up to 18 x 800 Gbit/s network interface ports in a 2RU (two rack unit) box. The switches run DriveNets Network Cloud software to perform data and control plane functions, including 800 Gbit/s routing. AT&T has been working with DriveNets and Broadcom for a few years now on the deployment of virtualised routing functionality – see our report from early 2023 on how AT&T was transforming its transport network. “The use of white boxes and the disaggregation of the hardware and software [helps to] control costs and facilitate faster innovation,” noted AT&T. The multivendor deployment also included Ciena’s WaveLogic 6 Extreme coherent optical transponders and, “to create the cross-office connectivity between the packet and optical technologies”, 800 Gbit/s DR8 pluggable transceivers from optical modules vendor Coherent, while test and measurement kit from Keysight Technologies was used to verify the architecture’s performance. (There are a lot more technical details in AT&T’s press release for those that like to geek out on advances in optical and carrier Ethernet deployments.) Mike Satterlee, VP of network infrastructure and services at AT&T, noted: “Traffic on AT&T’s network continues to increase as consumers are using more connected devices. We anticipate network traffic growth to double by 2028 and the technologies demonstrated in this trial will play a key role in AT&T’s continued efforts to keep up with increasing customer demand to send data, watch videos and use streaming services,” he added. And it seems likely that AT&T’s work over the past decade will pay off in the coming years as it will be able to manage and adjust the capacity of its network, and adopt emerging innovative functionality, more easily due to its new way of building its network platforms and that could come in very handy as AI-related traffic volumes soar. 

The new chairman of the Federal Communications Commission (FCC) has effectively put all of the US regulator’s rules up for review and signalled an era of deregulation. In this public document, titled In re: Delete, Delete, Delete, Brendan Carr notes that “through a series of executive orders, President Trump has called on administrative agencies to unleash prosperity through deregulation and ensure that they are efficiently delivering great results for the American people… [the FCC is] seeking public input on identifying FCC rules for the purpose of alleviating unnecessary regulatory burdens. We seek comment on deregulatory initiatives that would facilitate and encourage American firms’ investment in modernising their networks, developing infrastructure, and offering innovative and advanced capabilities. The Communications Act directs the FCC to regularly review its rules to identify and eliminate those that are unnecessary in light of current circumstances, recognising that in addition to imposing unnecessary burdens, unnecessary rules may stand in the way of deployment, expansion, competition, and technological innovation in communications that the commission is directed to advance. Government-wide administrative law requires review of rules to ensure that unnecessary – or affirmatively detrimental – rules are not retained.” And so the purge begins! The US’s large network operators will be foaming at the mouth with excitement… Comments need to be submitted to the FCC by 11 April.  

In addition, Carr has also set up a national security council to help thwart cyberattacks and keep the US ahead of rivals in key tech areas, such as AI. The Financial Times reports that Carr believes the council can help boost the FCC’s focus on the “persistent and constant threat from foreign adversaries, particularly the Chinese Communist party… These bad actors are always exploring ways to breach our networks, devices and technology ecosystem. It is more important than ever that the FCC remain vigilant and protect Americans and American companies from these threats.”

Latin American network operator Millicom has signed a definitive agreement to acquire Telefónica Colombia (Coltel) from the giant Spanish telco, sealing a deal that was first announced in July 2024. The initial price for the operator was put at $400m, but Millicom noted that the purchase price “is subject to customary adjustments for net debt evolution, working capital and changes in foreign exchange rates, and as of September 30 2024, [the price] would be $362m.” Millicom added: “The proposed combined entity would rejuvenate Colombia’s telecom sector by forming a robust telecom entity with the necessary scale and financial capacity to support the significant network and spectrum investments required to achieve Colombia’s ambitious digital inclusion objectives.”  

– The staff, TelecomTV