AWS re:Invent: main innovations and partnerships

AWS re:Invent (191202-06): see https://press.aboutamazon.com/press-releases

Apart from a number of compute and storage innovations, orders, new renewable energy projects and new fulfillment centers, here are the main novelties.

Services

• Amazon Translate adds 22 languages (total 54; 2804 pairs)
• Amazon Transcribe Medical, ML-based: allows physicians to dictate clinical notes and speech into accurate text in real time
• AWS DeepComposer: AI music composer
• Amazon Braket: quantum computing services
• AWS Wavelength: to build applications that serve end-users with single-digit millisecond latencies over 5G
• AWS Outposts: managed & configurable compute and storage racks (and databases, analytics, ML) built with AWS-designed hardware that allow customers to run compute and storage on-premise (in hybrid cloud), brings native AWS services, infrastructure and operating models to virtually any datacenter, co-location space or on-premises facility
• AWS Local Zone in LA for single-digit latency; first customers: Netflix, FuseFX, Luma Pictures

Partnerships

• With Formula One Group (Formula 1) for Computational Fluid Dynamics (CFD) project to simulate the aerodynamics of cars while racing, for 2021 car design.
• With Fox to enable a new cloud-based media production and delivery platform, a single platform will be used to deliver both traditional broadcast and D2C streaming services.
• With Verizon, Vodafone Business, SKT, KDDI: to use AWS Wavelength for 5G edge computing.
• With Novartis on digital transformation: reimagine core pharmaceutical manufacturing, supply chain and delivery operations, create Insight Centers that provide real-time visibility across its network of manufacturing operations & distribution centers.
• With Slalom to build joint AWS | Slalom Launch Centers (Launch Centers): help customers migrate to cloud & modernize IT; first 3 centers in Seattle, Chicago, Atlanta.
• With National Football League (NFL) to advance player health and safety using cloud and AI.

HBO Max: all the specs

Launch date:

• May 2020

Content:

• focus on 3 areas
• kids/family
• millennials/Gen-Z
• adults (focus on women)
• new series rolled out one episode at a time
• total 10k hr at launch o/w 1800 films, incl
• originals (31 series in 2020, 50 in 2021)
• library content from Warner Bros, New Line, DC, CNN, TNT, TBS, truTV, Turner Classic Movies, Cartoon Network, Adult Swim, Crunchyroll, Rooster Teeth, Looney Tunes etc
• 3rd-party licensed content
• to add live special events

Pricing:

• 15 $/mo
• free for 10m existing AT&T HBO subs & HBO Now direct-billed subs
• plans new bundles with free HBO Max for premium video, mobile, BB subs (total 170m D2C relationships, 5500 retail stores)
• to add AVOD tier within 1 yr (with added content)

Tools:

• personalised profiles & homepages
• curated recommendations
• co-viewing (shared homepages separate from personal homepages)
• parental PINs
• downloads for offline viewing

Targets:

• 75-90m subs in Americas & Europe YE 2025 o/w 50m in US
• incremental investment $1.5-2.0b in 2020 (for new content, foregone licensing revenue of own content, operating expense for the technology platform, marketing)

Google I/O 2019: highlights

General

• Focus on privacy.

AI

• Launches AI Impact Challenge ($25M)
• Demos Project Euphonia (understand the speech-impaired)
• Improves Google Assistant (10x faster, to be added to Waze)
• Expands Duplex to web (assistant for making restaurant or hairdresser reservations)
• Improves Lens & adds to Google Maps

Android

• Passes 2.5b active devices
• Launches Android Q (beta #3; incl Project Mainline: deliver important code changes to specific internal OS components directly from Google Play)
• Plans parental controls
• Adds Live Caption for real-time subtitles
• Works with Qualcomm on API improvement for 5G

Android TV

• Enables one-click subscribing
• Reaches 140 pay-TV operator integrations, 60% of smart TV manufacturers uses Android TV, total 1k content providers & 5k apps.

Devices

• Launches Pixel 3a (5.6 inch, $400) & 3a XL (6 inch, $480), Nest Hub Max (10 inch screen, video camera, $230)
• Considers foldable device
• Rebrands Home Hub to Nest Hub (drops price to $130, expands to 12 more countries)

AR

• To add AR to Google Maps (for Pixel users)
• Google Search results in 3D AR

Privacy

• Adds incognito mode to Google Maps

Search

• To add podcasts

Spectrum holdings and caps in the Netherlands

Spectrum holdings in the Netherlands, with caps for future auctions in 2020 (700, 1400, 2100) and 2022 (3500).

		Available	Cap		Current holdings					Maximum biddable
			40%		KPN	VZ	T-Mobile	Total		KPN	VZ	T-Mobile
700	paired	60						0
800	paired	60			20	20	20	60
900	paired	70			20	20	30	70
Total		190	76		40	40	50	130		36	36	26
1400	unpaired	40						0
1800	paired	140			40	40	60	140
2100	paired	120			40	40	40	120
2600	unpaired	60			30	0	30	60
2600	paired	130			20	60	50	130
Total		490			130	140	180	450		66	56	16
3500		290						0
Total		290	116		0	0	0	0		116	116	116
TOTAL		970	388		170	180	230	580		218	208	158

Amazon break-down: e-commerce, web services, renewable energy, Kuiper Systems

Amazon really has only two platforms: e-commerce and web services (with some links between them, such as Prime).

On each, it is continually expanding, including wholesale services.

Renewable energy could be a third, esp. when it opens for third parties, turning Amazon into an energy provider.

Kuiper Systems seems a long shot, but potentially turning Amazon into a global ISP.

Platform

E-commerce

goods

ordering

distribution centers

delivery

shipping

physical stores

Web services

AWS

Media services

3rd Party services

Voice assistant

Amazon Chime

Amazon Pay

Renewable energy

Kuiper Systems

KPN 19Q1: opex down, capex up, outlook flat

Opex

• Cost savings (new program) EUR 27m (target 2019-2021: 350m from EUR 2.015b in 2018).
• 50% of SME base migrated to KPN EEN.
• KPN EEN reduces cost-to-serve 25% by 2021, reduces IT-systems 75%.

Capex

• Started 11 FTTH projects (XGS-PON from Nokia, max 10/10 Gb/s).
• Orders Huawei equipment for 5G radio network.
• Network to be 5G-ready by end 2021.

Outlook

• To focus on 4 KPIs: adjusted EBITDA After Leases, adjusted indirect opex AL, FCF, leverage ratio (net debt AL).
• Outlook 2019 maintained (EBITDA flat, capex 1.1b, FCF lower, div 12.5c).
• Outlook 2019-2021 maintained (EBITDA organic growth, capex flat, FCF CAGR MSD, progressive div with FCF), medium term leverage target max 2.5.

Other

• Telefonica DE stake reduced to 3.5%, from 4.4% end 2018.
• Revenue contribution KPN Wholesale up to 11.5%.

Telekom DE build-out plans 2019, part 2: mobile densification, 5G, FTTH, FTTO, IoT

Deutsche Telekom's Telekom DE: build-out plans for 2019 (part 2):

Mobile

• 2k new base stations (o/w 300 in Bavaria, 250 in BW, 250 in NRW; focus on roads & railways; o/w half in rural areas)
• add small cells (mainly in Hamburg, Berlin, München; in public phones, lampposts, street furniture)
• additional 5G test sites (Darmstadt 19Q1; currently Port of Hamburg)

Fixed

• 60k km fiber (currently 500k)
• expand FTTH (61k HH in Bautzen, 47k in Märkischer Kreis, 45k in Sachsen, 30k in Stuttgart)
• upgrade 5m HH from <50 to="">50 Mb/s
• connect 140 business parks to FTTO

IoT

• expand NB-IoT (machine/sensor network) nationwide by end 2019 (currently 35k connected parking spaces, with Park & Joy app, x2 or x3 in 2019)