Tue, Sep 12, 2017 - Page 12 News List

World Congress on Information Technology: Sercomm’s Wang forecasts record Q3

By Lisa Wang  /  Staff reporter

Sercomm Corp (中磊) yesterday said it expects revenue to hit another record high this quarter, benefiting from a strong rebound based largely on China’s demand for its fiber-optic home gateway units.

China’s recovery is mainly backed by the Chinese government’s restoration of its push for fiber-to-the-home (FTT) installations during the second half of this year after the market stagnated in the first half of the year, the broadband and telecommunications equipment maker said.

“We are positive about our order outlook in the second half through the fourth quarter. We are seeing revenue moving toward a record high in the third quarter,” Sercomm chief executive James Wang (王煒) told a media briefing during the World Congress on Information Technology (WCIT) in Taipei yesterday.

Sercomm already saw its revenue surge last quarter to an all-time high of NT$9.3 billion (US$309.73 million).

“A strong rebound in the Chinese market is setting in since summer primarily due to the government-led policy push. Sercomm will benefit from this rebound because of our strong bond with local clients,” Wang said, referring to the rapid FTT deployment of Chinese customer China Mobile Co (中國移動).

The biggest telecom operator in China recently reached its annual FTT deployment goal for the whole year, well ahead of schedule, Sercomm said.

Sercomm expects to ship about 10 million home gateway units this year, helping it to take a 20 percent share of the global market, Wang said.

The home gateway, which facilitates connection between a local area network and a wide area network, is the biggest revenue source for Sercomm, accounting for a more than 60 percent share of its total revenues.

The company said it also saw a breakthrough development this year with a new networking technology called “low power, wide area” (LPWA) that includes NB-IoT, CAT-M1 and Lora technologies.

The LPWA technology is key to unlocking Internet-of-Things (IoT) applications, such as smart cities and smart homes, given its characteristics of long-range access and deep penetration, Wang said.

LPWA networks enable thousands of small battery-powered devices to operate for at least five years with low-cost modems and affordable connectivity, he said.

Sercomm is to start shipping the first batch of modules that support LPWA technologies in the next quarter to China and South Korea, he added.

In China, LPWA modules have been adopted by bike sharing operators to help locate their vehicles, while in South Korea, the modules are often seen in electricity, water and gas meters to help conserve energy, Wang said.

Shipments of LPWA-enabled modules and small cell base stations are expected to soar from less than 1 million units this year to 10 million units next year, Wang said.

The market is expected to see explosive growth over the next two to three years, he said.

By 2020, LPWA modules are expected to make up 10 percent to 15 percent of Sercomm’s overall revenue, he said.

This year, the revenue contribution will be just a single-digit percentage, the company said.

Taiwan’s government should speed up its efforts to bring smart electricity meters to residential households, as the technology is ripe for adoption, Wang said.

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