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BLOG

Open Insight #14

(Click here to read the Swedish version)

Welcome to Open Insight, our blog for investors. This is where you can find out more about our offering and market position, our progress, our challenges and our growth. 

An unusually strong quarter sums up our Q3 report at a time when macroeconomic factors are making their presence felt, and our earnings benefited from two large orders in the US and a strong USD. As the Football World Cup has kicked off, I am proud that we are once again contributing to a great viewer experience.  

In this edition we bring you news from the world’s largest timing and sync event, ITSF 2022, held in Düsseldorf on 7–10 November. We and our customers Türk Telekom and Three Sweden were there and presented the benefits of our unique sync solution. We have high activity is the area of synchronization, with many deliveries, deals and POCs. 

We will also report on how we are gradually strengthening our position in IP and Cloud, the keen interest in Nimbra Edge, and our upgraded Nimbra platform, which quickly resulted in a new deal. We will share news about our new development site in India and our colleagues in Los Angeles who are sharing valuable expertise with our team in Solna.  

Strong interest in our 5G solution at the ITSF 2022 timing and sync forum in Düsseldorf

At ITSF 2022 (International Timing and Sync Forum) in Germany, Net Insight’s technical experts and sales team were present with two presentations on the program. The trend is for more and more mobile operators to attend this type of expo, which indicates a growing interest in the area.  

Our customers Türk Telekom and Three Sweden included the advantages of our sync solution in their presentations. Three Sweden got the largest number of questions during the panel debate that followed, with operators asking why they chose this particular solution, what their experiences had been and what quality Net Insight’s solution could offer. Håkan Andersson from Three gave a persuasive description of the benefits. The industry was impressed with the answers. This created a lot of publicity for Net Insight’s booth, which was the most visited at the conference. Some described our visibility as exceptional. Our message was about the value of GPS-independent synchronization, which is cost-effective and secure. This type of strong communication and important sales arguments demonstrate how competitive our offering is. 

“The industry was impressed with the answers. This created a lot of publicity for Net Insight’s booth, which was the most visited at the conference” 

The standard building method using the Precision Time Protocol doesn’t work for building 5G for operators with leased networks. The same applies to optical networks with varying asymmetries. Our Precision TimeNet solution is optimal for such cases, which occur in all countries. In addition, interest was piqued in our comprehensive telemetry and the related educational presentation, which gives operators insight into the quality of networks for synchronization purposes. Almost all operators experience challenges in understanding how well their network transports synchronization.  

Håkan Andersson, Mobile Transport System Specialist, Three Sweden presents the advantages of our sync-solution at ITSF 2022

Hans Sjöstrand, Product Manager Sync, Net Insight at ITSF 2022

Intensive pace in time synchronization

Håkan Andersson, Mobile Transport System Specialist, Three Sweden

We have strong activity and a high investment rate in sync technology. The order for our current Nimbra TimeNodes that Three Sweden placed last summer to synchronize its 5G network has now been installed in some of the regions. Furthermore, the roll-out of Türk Telekom’s national synchronization network is in progress, and our nodes are now operational and calibrated in all regions.  

Read more about how our GPS-independent sync solution is revolutionizing Türk Telekom’s 5G roll-out 

In addition to this, we have 5–6 POCs out with customers and more on the way in. The high frequency is important in the phase of establishing our product in the market and verifying its competitiveness.  

Nimbra Edge goes from strength to strength

Our cloudbased Nimbra Edge solution, launched in 2019, was created to meet a concrete market demand for complex, large-scale, cloudbased distribution of live streams to geographically dispersed locations. It is a software-based cloud product that easily directs and controls live video traffic. Nimbra Edge is known as the industry’s most open and easy-to-use cloud solution system and won the “Best Network Delivery Technology” category at the CSI Awards in 2021.  

Since its launch, sales have steadily increased while use by our existing customers has risen. Between April and September 2022, for instance, revenue from the Nimbra Edge platform increased multifold from low volumes. This is due to a combination of incremental growth from our OPEX customers and an influx of new customers, e.g., as a result of an agreement worth almost SEK 8 million that we signed in Q3 with a leading American service provider. The order includes hardware, which represents less than 10% of the order value, and a software license agreement with an initial term of three years. 

New development site in India

Finding senior R&D expertise to support our growth journey has been a challenge for Net Insight as for many other companies. The Swedish labor market is limited in size and many companies are competing for the best developers. That’s why we established a development team in India during the year. This gives us access to the Indian labor market and talented Indian developers, who have already started contributing to our product development. In the company’s current growth phase, with strong initiatives in 5G synchronization and media, the establishment of the site in India is important. It allows us to cost-effectively maintain our competitiveness in the media segment and have the resources to develop new products for new markets.  

The team in India has, primarily, eased the workload on our R&D organization by taking over the maintenance responsibility for one of the product lines. Another advantage is that in addition to our development presence in Europe and North America, Net Insight now also conducts product development in Asia.

Integration of development teams takes our IP solutions to the next level

During the fall we began the process of integrating our development team in Camarillo near Los Angeles with the team in Sweden. The US team was first in the world to implement IP Media Trust Boundary, a cost-effective, secure IP network solution that plays a key role as it includes functions such as real-time IP media monitoring, media protection and traffic control. As media networks become increasingly open, it is crucial for network access to be secure, trusted and tamper-proof. The US team’s Trust Boundary expertise is now being transferred to all products, while our experienced developers have the opportunity to expand their competence. The team’s collective expertise and engineering know-how will enable us to take the solution to the next level.

Upgraded Nimbra gives Mobilelinks an efficient transition to IP

Mobilelinks is a long-standing customer of Net Insight. With their focus on live sport and expertise in remote production and remote use of commentators, they are one of northern Europe’s leading service providers. To keep up with customer demand for increased bandwidth and broadcasting from more sports arenas, Mobilelinks have gradually expanded their media network with our Nimbra 1060. They doubled their media network capacity from 100 Gbps to 200 Gbps in 2020, and August this year saw the first delivery of our Nimbra 1000 platform enhanced with a suite of advanced ST 2110 functions as mentioned in Open Insight #13. This means their network will be upgraded to 1,200 Gbps.  

Our upgraded Nimbra platform enables our customers to build any type of IP-centric workflow in a combination of new and existing networks. This deal provides clear proof of our competitiveness and ability to offer customers an efficient transition to IP.  

Advances in our growth areas

It has been an eventful fall with many important deals and launches. I am proud of our advances in IP, Cloud and 5G synchronization and look forward to continuing our successful development. 

Crister Fritzson, CEO Net Insight 

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