Sivers Semiconductors AB (publ) (SIVE) Earnings Call Transcript & Summary

[Audio Gap] today to you all. A very full program of information about Sivers IMA where we are and where we're going with the company. And it's a historical day that's why this is our first Capital Markets Day that we had since we entered into the Nasdaq First North Growth Market. So today, I am going to have myself. We're going to also have William -- Billy from our Photonics business; our CTO, Mats Carlsson, for the Wireless business; and some of our customers and partners: Blu Wireless, CCS and Micronät, who is the customer to CCS. And we're going to have a Q&A in the end as well, but we're also going to have short Q&A. So please try to ask questions into the window that, that you can see. And I will receive the questions here and read them for you. So -- and also the speakers, please get in again when you -- it's time for the Q&A in the end of the meeting. So I assume we have both new and old shareholders that want to see this. So we are going to do some of the history first of the company, so you get some background. So briefly, the holding company is now -- the management team is run by myself, our MD in Glasgow, Billy. And we have our CFO, Robert, who is also here today with me. We have been in this business for a very long time. Most of us have been working within the telecom and data industry and foundry industry for plus 20 years, so we have a long history in the business. If we look at the company, in general, as well, the whole company has also a very knowledgeable team. We're about 100 people, but we -- actually, 20 of those are PhDs. And Billy will tell you more also about the Photonics part. I would say there's like 13 PhDs in the Wireless part. No, sorry, not 13 in the Wireless part, it's 32 people in the head office Wireless part, only 13 people in the department in Gothenburg. And then the rest of the people is in the Photonic business up in Glasgow. The company was introduced to Nasdaq First North in November 2017. And the company was actually founded already back in 1951. So if we look at the company, it's been around for a long while. But 5 years ago, we actually did a very big sort of new strategy and changed the strategy for the company, and that's what the path we're on right now. The company has earlier between the sort of '60, '70s and '80s been owned by, for example, Philips who bought both Sivers and then also the IMA. And that's where we came together to 1 company. And IMA actually coming partly from the Royal Institute of Technology and also ACEA, who is a large electronic engineering company, who was part of that. And then there was a management buyout of the company in the late '80s, early '90s. And then the people who bought the company at that point have then later on, 5 years ago, put a new strategy in place and where the company's technologies are now very much focus on the future and the market change that has come. So one thing that we started off with in 2015, '16 was to sign a contract and a partnership with Blu Wireless, which are here today and will present to you. In 2017, we acquired CST Global. At that point, I think it was an acquisition about SEK 220 million in total. We also went into first -- Nasdaq First North in 2017. And we also added Ampleon, which is a very important partner for us in 2017, and they also invested in the company at that point. Then we've been working on new partnership and investors over in 2018. We've also, during this time, have got a lot of new institutional investors. And in the Photonics business, we got this famous Fortune 100 customer in 2018. And we've been developing that customer over in 2019 as well. We've been adding design wins, which I'm going to tell you more about. And in the end, we also in the phase now in Q1, where we see that we are accelerating the business from all of this and all the work that has been put down as a foundation for the company. And a lot of those things, for example, we have now 16 design wins that we are working on, putting over to supply agreements, and we recently moved 2 companies into supply agreements, for example, in the Wireless business. We are keeping on developing the Fortune 100 customer that Billy will tell you more about. But let's take a look back also on last year's numbers and how did it go? If we look at the Q4 numbers, we grow the company about 24% in revenues. If we look over the full year, we had a revenue growth of 35%. We improved our EBITDA about SEK 4 million. And we are still in a phase where we're actually developing the company and should not possibly look too much on the quarterly side of things. I think it's better to sum out a bit and look at the yearly revenues. And if we look back all the way to 2016, we actually had SEK 18 million in turnover, and we are now close to SEK 100 million. And over the last year, as I mentioned, 35% of the business was growing from 2018. So we have a healthy growth even before we actually have come to the growth phase yet. If we look at the segmentation, which is now available in our quarterly reports due to that we actually moved over to IFRS. We can see that both legs has healthy growth right now, 32% in the Wireless and Photonics 36%. The largest market is the North American market right now, with a growth of 63% last year. And Europe is 26%. And Asia is much smaller, but we have new business coming in, in Asia and new customers there. So we see a positive movement in the Asia market as well. If we take a look at the share and the owners since January 2016 to now, we can see that we -- the share price was around SEK 3.50 or something like that back in 2016 in January. Current share price is about SEK 6.50 after what's been happening in the last couple of weeks here. The main shareholders are still Keith Halsey, who was one of the main owners of CST. And we also have Erik Fallstrom, who has been with the company and worked with the Wireless part and was one of the -- ones who invested at the management buyout. We also added institutions like Swedbank Ny Robur and Swedbank Ny Teknik, AMF Pension, for example. We have Alfred Berg and others, which is a very good -- have been very good support over the last couple of years. So which part is the business? I've mentioned them already. We have the Photonics business. We're going to drill down a bit on that. Billy is going to talk about that for half an hour after this. Then we have the Wireless business that me and Mats is going to go into. And these 2 legs are quite important for us. It's 2 legs where we have, you can see, a lot of growth in both legs and are definitely something for the future. And why is it something for the future you might ask? Yes, one of the main drivers, which is affecting both legs is the demand for increased data capacity and the growth of the data. And specifically now when we have this issues with the virus and so forth, it's -- people needs to have data, and it's just growing. And it's been an exponential growth over the years. And for example, in Q4, I think 58% growth in data compared to a year ago, according to Ericsson's report, we're also changing the technologies all the way from 1G, 2G, and now it's 5G. And 5G is a very important step for the market to realize gigabit solutions. And we have the key to solve that. And Mats' going to tell you more about the technology behind that. And also, there are 2 technologies that can actually get the gigabit speed: it's the fiber, which is sort of our Photonics business addressing and then the Wireless business addressing the other one. Another important part is the drivers for sensors, in general. And the reason for the -- driving the sensor business, and we just recently changed from fiber to Photonics in our naming and that's because we see this immense growth in this part of the business. And one thing is that adoption of IoT and industrial IoT and advancement in how to build the sensors, in general, and the growing usage of sensors in smartphones and other consumer electronics and also the technology are now getting better and better with integrated silicon photonics, which Billy is going to tell you more about how that actually affects and that makes the device smaller and cheaper. The demand in the automotive industry is also increasing in driver -- assisted-drive cars, self-driving cars with LIDAR and so forth. And also a demand in increased variables and sensors and so forth, in general, for wearables, which is quite, quite important. But I also like to put some time into the situation, in general, in the market. And we all -- the whole sort of financial markets right now have been a bit stressed over what's happening with the coronavirus, how are you affected and so forth. And I will take the opportunity now to sort of tell you where we are in this. And as I see it, long term, the 5G and the Photonics market will not have any impact at all if you look at it long term. That market will go on, and it would grow, and maybe there is some small delays in how it will grow. But in general, that is not affected. If we look at our main suppliers in the Wireless value chain where we are sort of fabless, we have constant contact with our suppliers in Germany and Singapore and Sweden. And we don't see any issues right now. Of course, that can change over time, but there is no impact. We have also sort of a stock of things that we can use and sell and so forth since we are using the chipset and we buy them in bulk, so it's a good thing that we can actually use that. In the Photonics, we have, of course, our own fab in Glasgow, and that is, of course, more difficult maybe in that sense, but it's always a risk that personnel can get sick and so forth. So far, so good. We don't have any sick personnel as far as we know, and we are going on with deliveries. As you know, we're not doing public forecast, and we're not doing any forecasting. So we're not going to go into how the quarters looks like and so forth in the future, and we're not doing it right now either. As we always have said, we are in a phase with the company where quarters goes up and down, and it could be sort of an order that goes between March and April, and then it's smaller or it goes between March and other way. And that's sort of the business for us right now. And we're in a growth phase. And also -- I mean, of course, we are trying to take care of our employees. So we are asking them to work from home, if they can. There are people who cannot do that. We have lab equipment and so forth. But the less people we are, the less risk is it for transmission and so forth. So we are using our technology to be able to work at home. And so far, we don't see any adverse effects. We have a lot of meetings. On the sales side, we are signing as many NDAs per week as we've done before. We are getting RFIs, and we're getting quotes and questions from that. So right now, I think that, in general, the business is going on. Of course, we will see in the future if the overall market will affect anything. But right now, I'm in a good place, I would say, with this, but it can, of course, change. If we look at the strategy, in general, where are we and what is very important for us as a company? So the partnerships we're building is one of the foundations. And I'm really, really happy that a few of them are with us today, like Blu Wireless and CCS and so forth. They have been fantastic partners, and I'm looking forward to hear what they're going to say today. So building that kind of partnership is important, and we've done that now with many companies, and we have sort of got into the business with many large companies and have very good relationships with them and that's based on how well our technology works, and how much they want to work with us because we are a technology company that can supply the things that is really differentiate their products as well. So recently, we went out with the iMac press release with the Photonics business. We recently had a press release with NXP, and we also had one with IDT again, who's been with us for 2.5 years now. We are focusing on more verticals. We're seeing more verticals coming in. And in Photonics, Billy is going to tell you about the 3 ones we're focusing on now. In the Wireless one, I'm going to go through the verticals that we're working on. And we also see new verticals coming in, and the technology we are working on, in general, is sort of something that's going to be more and more and more used over the years. So it's nothing that is sort of a thing that comes up just now. It's something that's going to be around for quite some time. So the millimeter-wave part, if we say, technical word, that is actually something that's going to be used in satellite communication in 100 gigabit links and so forth in the future. And we keep on investing now in this continued growth in the business. We had a directed share issue just recently, which we are now keeping on investing into the business to grow and take market share and become more -- working more and more with our partners, which is quite important. Okay. So this was the first part. We haven't decided on any Q&A right now, I think, maybe. So I haven't seen any questions at least. So we will move on, and we are a bit ahead of schedule, but I want to present Billy, who is our Managing Director in the Photonics, and he has been with us now since September last year and doing a tremendous job. And he has a long history within the foundry business, and I'm very happy that he's here today. You go, Billy.

Okay. Thanks, Anders. And sorry, everyone, I can't be in the room with you talking today and meet everybody in person. I understand there's a lot of people in that situation. So let's get started. So today, I'm going to introduce you to CST Global Photonics business, some of the areas that we're working in and why I think it's really exciting that we run these areas and what we're going to be doing. Just a little bit -- maybe before we get started, I studied Photonics at the Glasgow University, a long, long time ago, but I spent 20 years in the silicon industry, working in every area from research and development through to operations, engineering and quality. I led the Xbox introduction in GlobalFoundries, which was the key silicon technology that we'd bring to GlobalFoundries main business at 28-nanometer. So as I said, today, I'm going to give you a brief introduction to what we do at CST. Moving on to the next slide. Okay. So we're based in Blantyre, Scotland, where we have our semiconductor fabrication facility. It's actually been in existence for some period of time, actually the original building over 18 years old. And we do all our development and manufacturing Photonics devices or lasers in this facility. A lot of our team come from the existence semiconductor industry, that exists in Scotland. We had companies like Motorola, et cetera. And also the academic progress of Glasgow Strathclyde University have got very, very strong Photonic Research Group. So thus this emerged and evolved of that whole ecosystem. The team is currently about 66 people. And we're looking at key expansion over the next year, and I'll explain why. We're 14 -- so over 25% of our team is a PhD level, and that covers everyone from research and development, engineering and chip development. We operate 3 shifts, over -- 7 days a week over 3 shifts. So it's a full time pilot production facility. We have all the normal things that a normal silicon business with half -- except for maybe this week. Within this facility, I'm with a very capable team, we've developed excellent technical capability in laser photonics. Some people think of lasers and those things that you point for laser pointers. And lasers are more complicated now and going to become a really, really exciting part of our works going forward, much, much more than the [indiscernible] with a requirement to get data to the devices. Anyway, so this ecosystem in our capability allows us to participate in multiple high-growth markets, and I'm going to expand on that later in the presentation. Next slide, please. Next slide?

Can you put them -- yes, I think we have a delay in the picture right now.

Yes. Yes. Yes. So sorry, can we just go back to the picture, sorry this time slightly?

Yes, I'm trying. Yes.

Yes. So just [indiscernible] be an example we have development in operations looks pretty complicated and actually a lot of what we do is very complicated. And we basically use 3 important silicon snapshot. You can see in some of the photographs here in the bottom right, an example of what I mean by structuring. So on that pillar -- on substrate we should call the epitaxy -- very complex epitaxy process but we're getting details. [indiscernible] pay them and we fabricate hundreds of thousands of devices or lasers on those wafers or substrates. And here, you can see examples of the team actually building them up, and then we have full testing capability as well. But I use all the standard techniques that exist within the semiconductor industry that most people industry know that what will focus being aged [indiscernible]. So they are very, very standard techniques and to people who are from our industry. Okay, moving on to the next slide.

Just for your information, Billy, please use an offline presentation because there will be a delay for the pictures I show for you when you have -- when you look at the video.

Okay. I'm -- yes, I'm looking at an offline presentation.

Okay, good.

So now on to next slide which shows a bit the multiple high-growth markets. And as Anders pointed out earlier on, we had sort of organic growth, mainly actually in sensing and [ vexo-typ ] applications. But the business has kind of converged over the last few years, actually mainly into these 3 verticals, which is optical communications, optical sensing and sensors and optical wireless. And they're all at different levels of maturity and growth, just basic info from what you'll report here. Each of these is expected to grow from the 2x growing out to deal in 10x multiples. And we're working at different levels in all 3 verticals. The other really exciting thing that Anders said that the customers we're working with are range from midsized companies right up to Tier 1 Fortune 100 companies that are in Silicon Valley. So many of the companies we are working with and are forming names within -- on the Street actually that remained in the industry. So I'm now going to talk about each of these 3 verticals in a bit more detail. The next slide. Okay. So the first one is the optical communications market. And this market ranges from cloud data center right through to quantum technologies. We've recently done a lot of work on quantum key development. It's one of our very, I call it, reset program, like an engagement with every university and in terms of the Internet [indiscernible] we're working with FT 100 companies and [indiscernible]. This year, [indiscernible], so we're working mainly customer [indiscernible]. The key markets are China and the U.S. where about 85% of our product was in the U.S. and the level of kind of what we're doing here ranges from initial prototyping brands with product qualifications. So we're very, very deep in this area right now. Moving on to the next slide. So this is the optical sensing and sensors. This actually covers a vast amount of applications. So everything from autonomous vehicles right through to biometrics and augmented reality. And again, we're working with key Silicon Valley companies in at least 2 or 3 of these areas. Unfortunately, we're bound not to supply any of that information -- very, very [indiscernible] we're bound for those NDAs. We see a lot of activity in requests in this area from Silicon Valley companies that most have been in security, which is facial recognition, atomic clocks, natural biosensors [indiscernible]. So one of the things -- one of the key technologies that enables a lot of this to happen is something Photonics and those Photonics are needed in CSD has been developing for years, enhance leading technology in this area, which is why we have so many of these big companies come into -- talk to a relatively small company in Scotland. They're coming to us because of what we have. They actually come to us because of that. And we have had been with those guys last -- 2 weeks ago, was very fine people and from one of those organizations in that room. It just shows you that those projects are going all the way up to Board level in those companies. Those are really, really exciting for us. So I'm not going to talk about what silicon photonics and why we think that's so important and what it's going to do. So next slide. Let's move before I do that actually should see this subject too. I'm very excited. It's -- vertical was actually optical wireless. Most people recognize that is actually mainly LiFi at the moment. There are other applications in this area, but we're working mainly in LiFi. We've already developed a chip for it, and we look forward to take it at the moment [indiscernible] industry. Those markets has triple, up to about SEK 1 billion in 2014 [indiscernible] you have a LiFi device on your phone that can basically make [indiscernible] very, very high-security environment capability. Okay. So on to the next slide. Now I'm going to talk you -- silicon photonics. As I mentioned earlier that it's a key pretty much to the new technology we're involved in. And just to explain this diagram a little bit. On the left-hand side, you see the traditional optical warehouse, Photonics warehouse is around forever, but is the running optical cables everywhere. And generally, it tends to be very long. But since this -- and what long haul and is that many of the other, which is on the right-hand side is the industry that I come from. And Photonics trying to get data back and forth from the device through the interconnect system. On these devices, the one that's on [indiscernible] and to get on 13, 14 years of [indiscernible]. What Photonics does is actually it fill [indiscernible] interconnect speeds through silicon device functionality even the [indiscernible] is going to be an out new -- completely new development architecture technology to sensor just to many, many, many applications in this world right now. [indiscernible] So next slide please. That's reflected in the assessment of interest you [indiscernible] assessed the silicon photonics market in its entirety, it will be EUR 3 billion by 2025. Now silicon photonics continues to have very attractive growth for the reasons I explained. It's also low-cost and high volume that the semiconductor industry is just providing. The [indiscernible] photonic capability and CST offers best and [indiscernible]. And so there's very, very few companies almost none actually that really offer what CST can do right now. That's why we have the kind of a partnership and been approached by these Tier 1 companies on a fairly regular basis. I think going to push prices up during the company in the last 6 months. So next, I want to show you a little video to illustrate. Going to the next slide. And if you can just trace the video here. I mean I've got a lot of graphic, just showing you basically the coupling process or thing that looks really simple, but basically, what's happening is there's a passive invasion when a laser is actually off to get the alignment of photonics device onto silicon. And it looks very simple, but this technology does not exist nor the performance levels going to photonic depth right now. Now as I said, we're working with several, like -- moving on slide -- the next slide. The Fortune 100 customer. So I would like to -- one example here of a company that we're very, very active with and [indiscernible] silicon valley Tier 1 companies on continuous business, but not just one project. We have -- for this customer here, we have a set of projects running in parallel as [indiscernible]. These all best customers alone [indiscernible] level, as I mentioned earlier on. So where are we going to go with us? This is in the sensing area. It's going to be on smartphones, biosensing type applications. The volumes as expected were enormous. And we have -- gave a very, very detailed level with [ stock ] group, weekly meetings, monthly management meetings. And as such, we are adding more staff to support this and one of the other type ones that we're working with local government in [indiscernible]. We also have [ 3 work ] agreements in place with these companies. And we have weekly [indiscernible] with the development and [indiscernible] right now. Okay. So I'd like to then move on to the next slide. So I'll talk very, very quietly, very briefly about what CST to do. And we talked really that align on what our strategy is now. These things CST offer, it's -- can actually do this end-to-end service and design modeling and also taking volume, as I mentioned along with deposition of ICs on a substrate. So we can easily allow the big volumes out. And we have [indiscernible]. So we offer full development modeling integration and development package. It's really [indiscernible]. And we also offer , as I mentioned, an unique technology in silicon photonics [indiscernible] leader in that area. And we already have actually a bit more than 50 million devices in the field [indiscernible] incredible company, incredible capabilities and incredible future. So to summarize, going to the next slide, the last slide, this is the summary slide with the CST offer. Our unique technology capability where we can design book to paper money [ flagship ] high volumes and [ same basics ]. We have a world-class team in leadership and in phosphate surface or Silicon Photonics. We operate in multiple high-growth markets, working with Tier 1 companies. And we have an incredible future ahead of us with -- I'd say with our own research and development right across into industry. And I'd like to wrap it at that point and take any questions later.

Yes. Thank you very much, Billy. We're getting questions here, so I can ask you a few questions. Number one, how big is the LiFi market and how mature is this technology right now?

And the LiFi market is -- well, as I said, it basically go to one domain. It's still quite small. We're working with one key company, actually Scottish company right now and who are -- we have just received a significant investment, over EUR 18 million for that startup. So that's one of the companies we're working with. So the market though -- the orders that we get in first are relatively small, namely prototypes. We've just produced our new [ onebot ] device that is right in the sweet spot for what they need and we're now in the prototype stage with them.

Okay. Thank you very much. I don't have any more questions right now. So I assume they will come in the end of the call. So thank you very much, Billy. It was very insightful. And please get back into the Q&A when that's later on. Thank you very much.

Okay. Thanks. Thank you, Anders.

So we are moving on, and we are ahead of schedule, which is really good by about 10 minutes. So we will now talk about the Wireless part of the business. And I'm going to have a short intro on that, and then our CTO, Mats Carlsson, will join me here on stage and go through the more technical pieces. So what is it we really are doing in the Wireless business? And I mean we're trying to and we have produced and we made products that is truly gigabit solutions, 5G gigabit solutions. And that is what's differ a bit from what they call the normal 5G or sub-6 gigahertz, and there are different names on it. But that sub-6 gigahertz is actually using the same frequencies that 5G or 4G was using. And Mats' going to tell you more about those details and what's the -- why is the difference. But it's a huge difference and not really comparable when it comes to the speeds you can reach. I'm going to talk about a bit where is this technology use, what are the verticals? So Billy talked about verticals within Photonics. We have a couple of very interesting verticals. And our partners and customers are going to talk later is also going to deep dive into those different verticals and what we're actually doing. So from now on, it's going to be sort of a deep dive into the Wireless business, and you will get more info about that. So 1 piece, which is the first vertical that is actually moving ahead a lot in now and for example, where CCS is doing and what Micronät is doing. It's the fixed wireless access or wireless Internet to the home or broadband. And it's a business where we can use both licensed and unlicensed millimeter waves. It's mostly outdoor, of course. It requires a robust environment. And one of the things that Blu Wireless is so good, that is to have mitigation and so forth to secure this robust environment, so all the signals could, together with our sort of really good RF solution, make a complete, very good solution, which is then important for the link budget, which is -- the link budget is the how far can you send the signal in the air. This gives also a huge flexibility. For example, our unlicensed 5G could be used over a very vast amount of channels, for example, which Blu Wireless and us are the only one still with commercial solutions out there. If we also look at -- one other thing is sort of a backhaul or mesh backhaul, which is also something that CCS is doing and other customers. This is a way of sort of sending the data over in a street canyon or in a street or let CCS doing it around Trafalgar Square, and they are sort of backhauling 4G base stations, Wi-Fi access points and so forth for different customers. The same things here, it's important for link budget and robustness and so forth. So the integration of the technology between Blu Wireless and Sivers IMA is very, very important for this use case as well. Then there is something that has come up over the last couple of years is one thing called open RAN or open radio access networks. And that is a technology where technology vendors can solve more of the white box base stations basically and compete maybe with Ericsson and Nokia and all the big dragons. And this is sort of different type of organizations, like Telecom Infra Project and so forth that is working on doing standardization of the interfaces to these base stations. And this is also for licensed 5G right now. This is more larger sort of -- large small cells/macro cells with a lot of chipset inside. It could be 32 to 48 or 64 different chipset with a lot of beamforming and beam steering and Mats' going to tell you more what that is. It's also important for reach and throughput and efficiency. And in this part, our partner, Ampleon, is very, very important for us. So we're working together to reach the Tier 1 companies here, where they are very big players in the market. And this is, of course, then very important to have a big partner like Ampleon being able to get that reach into the business. Another thing that we're working on is to track-to-train thing that Henry will tell you more about from the Wireless. And of course, here is also reach and throughput and flexibility and definitely reliability where Blu Wireless have developed a fantastic system where they can maintain several gigabit per second in almost up to 300 kilometers per hour, and Henry will tell you more about this. But this is also where we see one of the developments now happening right now, actually, as we speak. So what are we offering? Yes. I mean we're doing the chipsets all the way down to the silicon or silicon germanium, for example, or the latest technology we are using, which we haven't mentioned the name on yet. But that is sort of making the chipsets on the RF front end, as it's called. We're also making the modules, so the module is actually an antenna, together with our chip. Those are integrated together with the baseband from Blu Wireless and actually then also IDT, for example, or NXP for the license parts. We also to be able to sell this. We're selling evaluation kits and 5G and our test systems and so forth, to be able for our customers to get -- to test it, and then we have a design win after that when they have used that part. So we have design support to our customers for both hardware and software, mostly that is Blu Wireless actually running the software part of things, but we also have some hardware close software in our stuff. So here, you can just see a picture of our technology today. So these are those small chipsets and antennas. And you can see the latest beamformer IC here that we developed together with Ampleon. And all of these chipsets are, expect the beamformer already out now commercially available and in customers' products, and I'm going to tell you more about that. And how do we then reach the customers? What's the value chain here? So we are a component supplier, and we are selling to the system vendors. And the system vendors could be the large one with the Tier 1s, which we are working together with Ampleon and IDT to reach. And then we have the Tier 2 switches orders, the smaller ones like CCS and Cambium and others that have signed up for our products. Then those customers are selling directly to the market, like Verizon and others. And an example, which is going to be presenting here today is Micronät that is CCS customers. So that is the full value chain you will see here today, including the partner value chain. So it is a very good chance to see everything in 1 place. And some customer cases that we're out. I think CCS will tell you more today about the deployment in London and so forth, which is very interesting project they have won and they're working on. We also have a Japanese customer building modules called Fujikura. It's a large company in Japan with 55,000 employees. And of course, we have Blu Wireless with the track to train that they have been testing both in England and in Spain. So that's quite interesting. The latest supply agreement we signed just recently was with Cambium Network, which is a quite medium-sized company, just below the larger ones, Tier 1s. They have a turnover about SEK 260 million -- SEK 2,600 million. They located in Chicago in the U.S., and their focused market is the licensed 5G applications. So this is the first customer where we actually have that chipset out and signed a supply agreement. So this is something that we see going to be a commercial launch during the second half of 2020. So far, we have about 16 customers who have signed up, and as we count as design wins, we have now signed 2 supply agreements so far of these 16. So the plan during this year is to work hard to support all of these customers to get into the next phase, the supply agreement and the volume phase. So this is a very exciting time, and we have come far -- come far over the last 4 years, going from really good people with technology to now having products in the market. And that step is a huge step to take, and I think we've done it in a very good fashion and with a lot of very good partners as well. And here, you can see the ecosystem that we now have. I think we have a complete ecosystem now when it comes to modem vendors and partners with larger semiconductor vendors that we're working on to get into the Tier 1s, both from a license perspective and a nonlicense perspective. So this gives us the possibility to get a much bigger reach. I mean we are still a small company with very promising technology that's out there. And for sure, with these partners, we're getting a reach. This is much, much wider than we could get if we didn't have these kind of partners. So this has been a key fundamental strategy for the company from day one to work on this and work really hard to have the best technology for partners to choose us for the future. And I think we've done a very good job. And now I'm going to introduce you to our next speaker, who's been a very fundamental part of this, Mats Carlsson, who has been around in this ecosystem for quite some while and fundamentally, strong in making these connections from his previous work at [ Catiana ], for example. And he will now tell you a bit more about the technology we use and go into why it's so important, and what we are doing which is sort of differentiating us from some others. Here you go, Mats.

Thank you, Anders, and thanks for the introduction. Good afternoon, everybody. As Anders mentioned, I will go a little bit more in detail on our technology that we are working on our side. And also what is important in this technology and what is important to focus on when it comes to the technology development and so on. So on this slide here, you see up to the right on the picture, 3 areas which are important to focus on. Output power is, of course, essential to reach far out with your signals to have a long distance coverage of your network and get the data through over a long distance. And that is quite obvious. And also many of our competitors, they're also stating and boosting that, okay, this is what we have, we can achieve very high output power. And that's, of course, important to do that, but it's not only a game of output power. You also need to look at other things as well at the same time. You need to have a balanced solution. And I think that is really our core strength and key strength that, that we can really, really balance these important things. And the other important topics and aspects to the system is not only the power, but also, of course, to maintain a good signal quality. You need to have a certain amount of signal quality to be able to actually detect these signals when you receive them. If the signals are distorted through -- yes, over the transmission, yes, then, of course, you will not receive any signals or any data, and the link will go down. So signal quality is obvious. Power efficiency, that's also a key aspect to the system. If you look at the overall system cost, then it's not only about the cost for the piece of silicon that we develop, but you can also see that if you have a very power-inefficient solution, yes, then you need to put a lot of effort to actually cool away or take away the heat that this system is generating. So maintaining a very good and efficient solution is, of course, also very essential. So our strength is really to balance all these 3 main topics for our solutions and not just focus on one of these. And I think that is really what we have succeeded very well with so far and what we're also putting a lot of effort to maintain. And we put a lot of innovation into our solutions to maintain this. And of course, power efficiency, that's, of course, not only important for the cost then to keep the thermal system, part of the system down as well. But it's also good for the environment, of course, to reduce the participation as much as possible. If we compare ourselves with the -- one of the companies, there are a few other competitors we see that -- I would say, that we are roughly factor 3 better in efficiency compared to the competition. Other things when it comes to signal quality is, of course, to maintain a large bandwidth. Anders already mentioned that -- earlier today that in unlicensed 5G, we are probably one of the only suppliers of systems for unlicensed 5G that can cover the entire frequency band from 57 up to 71 gigahertz, both with the chip that we have, but also with the antenna, and that is really, really difficult for millimeter wave. And you can see that if you look at the normal 5G, which is, yes, the 5G that you operate down at sub-6 gigahertz frequencies, where we are not really focusing ourselves, you can see that the relative bandwidth is much smaller on those frequencies compared to what it is up at millimeter wave frequencies. And that makes it, of course, even more difficult to develop these systems. And that is what we have succeeded with, mostly because we have a very, very skilled team in our company. We have a very long experience in our team with our team members from earlier employments in bigger companies like Ericsson, but also from other places from academia as well. So we are pretty proud of this. It's very exciting to actually be in this business and to work on all these things and balance our solutions for the market. Bandwidth, that's also important. Here on this chart, you see -- to the far left, you see all the existing solutions from 2G, 3G, 4G as well, you have WiFi system. All these different systems operate at frequencies down at sub-6 gigahertz. And it's, of course, extremely crowded down there. And in difference -- yes, if you look at the crowdedness down at those frequencies and compare that with the vast amount of frequency that we have available up at millimeter wave, yes, then we see that we have at least a factor 10, maybe 20x more bandwidth available. And bandwidth, that's easily translated over to capacity. So the more bandwidth you have, the more capacity you can get. So if you have a factor 10 more bandwidth, yes, then you can get a factor 10 more capacity. So that speaks for itself that you can really get much more throughput, much higher data rates if you are operating in the millimeter wave bands. This is another way, on this slide here, to reflect on this. On the very busy table to the right that you see on this chart here, you see on the top part all the bands in 5G. This is a licensed 5G. It's also bands that are available globally. So these bands are available in all countries throughout the world. You see the bands starting from end 1 up, down to end 95. All those bands are operating at sub-6 gigahertz frequencies. So you see that the sub-6 gigahertz activities or frequencies, they have been splitted in multiple different frequency bands, and that makes the sub-6 gigahertz systems even more complicated to actually implement because you need to allocate your signals in different frequency bands somewhere in the sub-6 gigahertz range. But if we add all those frequency bands that are available at sub-6 gigahertz, we see that we add up at -- end up at around 570 megahertz of available bandwidth. So that's what all you got actually at sub-6 gigahertz. So that's the frequency or the bandwidth that you have available for your capacity. And then if you compare that with the 3 available millimeter wave bands, you have 2 bands, around 28 gigahertz, you have 1 band at around 39 gigahertz. And if you add all those 3 bands together, we see that we add up the total available bandwidth to just over 8 gigahertz. So here we see again more than a 10x larger bandwidth available at millimeter wave frequencies compared to sub-6 gigahertz. So that's, of course, very important. We see a lot of higher capacity in those bands. And furthermore, these complicated systems down at the sub-6 gigahertz frequencies. That's, of course, adding also to the cost to the system. It's much easier to just focus on 1 band and then allocate your signals there. So even though it's, of course, tricky to develop things at millimeter wave by itself, and then we have the fundamental knowledge to do that, it's, in a way, also less complex to actually operate up there. What is in addition to bandwidth important to increase your throughput capacity? Beamforming, we have heard a lot about beamforming. And that is something that we have actually a possibility to do at millimeter wave frequencies. If you do beamforming, you actually steer your energy to the user. So if you have a system where you direct your signal to the user, then you can actually reuse that same frequency to another user that is located in another direction. So even though you're transmitting and receiving at the same frequency, you can still maintain service to multiple users at the same time. And that is very tricky at sub-6 gigahertz frequency. In principle, you can also do a beamforming system at sub-6 gigahertz system, but those system becomes very big, very large. They get very expensive and very power-inefficient. So if you look at our module that you see on the right here on the picture, this is a module that is roughly 50/50 millimeter large. If you would do a similar beamforming system, as we can do with this one, but for sub-6 gigahertz frequencies instead that system would be like a quite large TV screen that you have in your home. So like a flat display that you have in your living room to watch TV. And to have that to steer your beam, that becomes very awkward. So beamforming is really an essential way to actually reuse the frequencies to operate at the same frequencies at the same time. So we can have up to maybe 8, 10 users using the same frequency. So that's, of course, also increasing your capacity at millimeter wave. So that's why it's so important to make use of beamforming. And this is a technology that we have really under control on our side. If we look a little bit back in -- on the development and evolution in the systems from 1G up to where we are today with 5G and so on, it all started maybe around 20 years ago -- more than 20 years ago with the first generation mobile phone systems. What has made it possible to actually get to where we are today is, of course, a lot of innovation in technology, in circuit implementation and so on, but also in the silicon technologies. If we look at when first generation mobile phones were introduced, that was at the same time as Ericsson just open up its silicon fab in [indiscernible]. And that was something that they were extremely proud of at that time. And that was 1 micrometer size of the technology. Today, the technology that we are using are roughly 20x smaller in size or actually even smaller than that. The digital technologies used for digital signal processing where we are not really active, that's even smaller. So that's like 7-nanometer technologies compared to 1-micrometer technology. So the evolution is really in the silicon technology, it's really part of this evolution also in the systems that we are using for communication. If we look further -- if we look at the integration of the system, then you see from 3G, 4G and so on, all the RF analog and digital signal processing were integrated into 1 piece of silicon. So 1-chip solution became available for 3G. And that has been since then tradition or the norm to actually use 1-chip solution. We now see a trend to actually move away from that again to make 2-chip solution, especially when you introduce now millimeter wave solutions. And the reason for that is that the technology development in silicon is so quick and fast that it's very difficult for the analog pieces to actually maintain the same speed as the digital development. And moreover, it's also not so easy to and not so appropriate to actually make use of those very small geometries for the RF section that we are working on. So the RF technologies that are really suitable for our products is around, let's say, 45 nanometer of size. Whereas the digital technologies are already down at 7 nanometer. And the cost also is adding a lot. It's increasing a lot for those very, very small geometries. So we are really now optimizing the RF solutions in dedicated technologies for RF. And then the digital technologies can continue using those very, very small geometries. So that's really one reason why we are now seeing change in the trend to have 1 piece of silicon. So we are today at 5G. We are really into those systems. We have the right skills when it comes to technology understanding and also circuit implementation technology to address this system for 5G and for 11ay as the unlicensed 5G is also called. So if we look a little bit ahead from where we are today, we see a lot of new applications coming up that is also making use of what we have experienced in. So we have SATCOM, for instance, that is an area where we see that we could also step into. We see already now some activities in that area. So we have discussions with potential new customers and so on in that domain. We have a very broadband 100 gigabit per second system, making use of even higher frequencies compared to what we are working in today. And that is something that we are also, of course, looking at. We are following what's happening in the world, what development we see in academia and so on. We are constantly also interacting with the universities to see how can we learn from academia to make sure that we can develop our products in a very efficient and competitive manner. We have also other more short-range communication systems coming into consumer electronics, like you see on this picture here. These glasses where you see -- where you need to have a wireless connection and that requires a lot of data that goes from -- between glasses and then your computer. So I think that was everything I had actually to say. I don't know, Anders, you would like to say anything in addition to this slide here?

Yes. We're also going to have some Q&A. But yes, I mean this is quite interesting. I mean we have been talking about this technology being here for the coming 10 years for 5G, but also 6G or 100 gigabit per second, that will be here for the '20. So what Mats is explaining in a big piece here is that we actually have a technology, and we are working on something that is the future technologies. There will be, for sure, sub-6 gigahertz type of application as well. But this technology is what's going to be there in the future, and we have the knowledge how to build these systems and are moving ahead with our road map and we're seeing a lot of new technology. And one thing that Mats maybe didn't mention about is that the investments now. Just look at how much did the operator spend during the last year on licenses to get these frequencies for millimeter wave just in the U.S. So they have been having auctions there, and it's $10 billion invested. And that's just to get licenses to be allowed to send on these frequencies. $10 billion, think about that. What is like the investment then going to be in the technology to use these frequencies. So this is just the start of something that is amazing that we are part of.

I just told you $12 billion.

$12 billion, yes. Another $1 billion here and there. So it's happening a lot at least here. So we're going to have some questions now, and I see there are some questions coming in. Can you compare with bigger companies in short-range millimeter wave? And let me answer that first. I mean what we're seeing, and if we look at this sort of in the long term, we are now focusing on more of the niche markets where we don't have to fight too hard, but they're still a fight with the bigger players. But when you're moving over into the big volumes, like the handsets and so forth, you need to have a slightly different technology. And specifically, you have to use much less DC power. So that part is the challenging part. But when we're sort of getting and building our business, and as I said already 4 years ago, is that we're going to build a business, and then we're going to have a chance maybe to start fighting that kind of business as well. And do you have anything you want to add, Mats, on that?

No, I -- what I could add, actually, is that the -- if you look at the circuit implementations for short-range and then the technology that we have actually behind the short-range or longer-range communication, that's quite similar. So I would say that we have certainly the skills and the know-how to also optimize our products for shorter range. So I don't see a fundamental reason why we shouldn't be there. Now we focus on the more longer range, more high-performance solution where we can also compete maybe a little bit easier on our side. But fundamentally, I don't see any big difference at all to actually also step into the short-range, very large volume applications.

No, it's just about timing, I think. It's more about that. And right now, we're in a very good place where we are. But when the time is right, we can address that market as well with the technology. It's just possibly more capital that is needed. So on that note, I'm getting some kind of question here. I think it's actually to the Photonics business. What kind of capital is needed and the details around the Fortune 100 company? And of course, I mean we haven't gone into that in details right now. But of course, if we have the possibility to go into the volume production with the Fortune 100 company, there's going to be capital, and Billy mentioned, for example, that we're talking to the local government. They want to have, of course, employment opportunities in the area, but also the Fortune 100 customers in itself is typically a company that wants to help with that kind of thing. So there will be capital needed, but the amount of capital would be much less than the turnover in the long run. So it's a very positive business case if we get to that, and they will sort of support us as well. How is the track-to-train in Sweden progressing? Yes. So I don't know if everybody knows that I was invited to the infrastructure department here in Sweden with 2 of the ministers talking at a roundtable about the possibilities for track-to-train applications in Sweden. And there has been some debate in the Swedish media about that we don't really have the type of applications that we need to have to be able to service. And there's a sort of overall, overarching vision in Europe to have the gigabit train, for example. And I think Henry will talk more about that as well. But in overall, of course, there's going to be some time. This is nothing that's happening overnight. But I think we got the message out that there is a solution out there. A lot of them are very interesting to listen, and we have a dialogue with a few of the companies or institutions that was there. And I think we'll keep on working on it. And we are here to support the day that our train operators like SG [indiscernible] and more want to do this. So I think we are in a good place and they know about our technology now. So will you considering license your IPR? I think that there could be a thing like that. For example, if there is a large vendor who wants to have millimeter wave into the devices or something like that, where we might not have a perfect fit. So in that sense, there could be that kind of solutions actually. Let's see. Considering your strong technical advantage, what is the logic for system integrated inventing the tech of house instead of buying best-of-breed? Do you see the trends in the situation? Is it becoming more and less to develop in-house or Photonics? Okay. That was the first one. So I think that in an early phase that the system vendors, like Ericsson and others, they always going to want to own their own technology, and it's very important for them to win the market and be out there early. In the second phase of things, then the companies can see the good things about buying things in bulk, in large volumes. And then the semiconductor vendors can do that and supply to several type of same customers, the same solution, and then they can reduce the cost. And then there is no -- not an idea anymore for the system vendors to actually provide that. So do you have something Mats...

Yes, maybe you could also add to that, that if you look into what is important for a big system company like Ericsson and these biggest Tier 1 companies, then you see that the software, everything in the system is what is creating their value proposition, not really exactly how they have implemented the RF but the implementation of the RF, that is our value proposition and where we have the skills. So I would say that we can help a lot of customers like the big ones to provide very competitive solutions. And in that way, they don't have to actually invest in those very low -- the smaller parts of the system.

Yes, the second part of that question was also around Photonics. How do you see the risk in the future 100 customer -- Fortune 100 customers will not proceed? What is the main risk in that aspect? And I would say, right now, it will always be a risk. So for example, that the customer don't -- decide to not use this technology in the end or something like that. But I would say what Billy told you about, there's a lot of interest now. We're working really hard. We're seeing several new projects possible coming in as well. So I think that the risk right now is lower, but of course, you never know. And we have come quite far now. They really like our technology. When we're asking them if they can sort of -- what can we do differently? They say, please do what you do. What you're doing is completely correct. There are other parts of this integration between what we are doing and the rest to actually be able to be using this in the consumer electronic solution, that is a bit behind what we are doing. So I think, right now, we're in a good place. We are in discussions on this constantly and working really hard on it, as Billy said. So the risk right now, I should say, is quite low. What are your scoring technology in preproduction RFQs against competitors? How are you being evaluated against Wireless and Photonics, respectively? So yes, we can share the last Photonic question to Billy later on, but when it comes to scoring in RFQs, and as Mats was saying, we have lately been in a few of them and specifically around this technology that the latest technology we have where we're seeing that we actually have 3x better power efficiency than the competitors, and that is, of course, huge. So -- and the interest we see via Ampleon from the Tier 1. So I think that we are scoring very well. Our backside of it is that we are not really there yet with full volume production components in that piece. So we are working on that, and the testing goes really, really well. So as we said before, in 2021, we will see the effect of this and the first customer. So it's a bit early to say. Let's see. We keep that one. Track-to-train. What is your supplier of mounting solutions? I might have a lead on what order integrate solution. Okay. Thank you very much for that. I think we should ask that question to Blu Wireless, but I think that the first rail company is the guys who are doing all the mounting and all of those things. So we are not really involved in that. We're quite far from that business. And I think also Blu wireless is actually. But thanks for the lead, please send it to me, and I can forward it to them, of course. In the recent U.S. auction, there was a very less competitive bidding for the 47-gigahertz band, not entirely unexpected, given the limitations of the higher band spectrum and mount spectrum already available. Can you comment on the U.S. spectrum availability? Yes, it's a long question. But yes, of course. I mean there are a couple of bands. And as Mats has explained, those 3 bands we've seen, and of course, the investment has been done in RF front-end, as it's called, for mobile devices, for base stations and all of that now. So of course, the technology that is here is more interesting to bid on rather than the new frequency bands like 47. And that will be something later on. But that's why we don't see as much interest in that band, I would say. We have 5 more minutes for questions, so we keep on going. Also, which revenue model do you aim for both your regards to Cambium and hopefully in the future to the Fortune 100? Yes, so the revenue model is quite simple. We're selling a hardware. We have a margin on that hardware. And that's what we do. And the target has always been to be above or around 50% gross margins. And of course, it's going to be difficult with really, really high volumes, then you probably have to go down a bit. But with the lower volumes that you have in some areas and the first -- specifically track-to-train, for example, where the volumes are not so big, the margins are very good. So it all depends. It's a sort of volume game all over. Okay. So I think we are getting ready for -- to introduce our first external speaker, which is Henry Nurser. And we've been knowing each other now for many years. And Blu Wireless is an extremely important partner to us. And Henry has been one of the founders of the company and has a long history in the silicon business. And I'm very happy he have agreed to be here today and tell us more about Blu Wireless. There you go, Henry.

Okay. Thanks very much for the introduction, Anders. Is the first slide up?

Yes, it's coming up now. So...

Perfect. Okay. Just introducing myself. I'm Henry Nurser. I'm one of the founders of Blu Wireless. Blu Wireless was founded in 2011. And that was specifically to design modem technologies, which is -- basically, the modem is the piece of silicon, which converts the RF signal from Sivers IMA, the analog world into the digital world, which can then be pushed through to the smet and IP and things like that. So effectively, we are very intimately -- we always have to be very intimately related to the RF partners, and I think we built a very strong relationship with Sivers IMA. So I'd say, we've been around since 2011. We are based in Bristol in the U.K. We also have a design site in India and also sales and marketing in North America and Japan. And our primary business models, we have 2 real business models, 1 which is the development of the, what we call our HYDRA modem IP. And also the design of silicon on chip baseband devices for third parties. A good example being IDT, which was recently purchased by Renesas. So we did their design for them, and they are marketing and selling that into the market. And the second part of our business model is that we also develop complete communication systems for a number of very specialist chosen verticals. And I'll touch on that later in the presentation. But I think as Anders has probably indicated already, one of the key ones is in the track-to-train area. So around the status, like Sivers IMA, the first systems are now starting to move to mass production, which is great. In conjunction with Sivers IMA, we're able to achieve around 3 gigabits of throughput. Now I think we need to put that in context with a lot of conventional licensed 5G technology, which typically is around the 1 gigabit level. So because of the increased bandwidth available within the unlicensed band, we are already able to get extremely high bandwidths, a significantly higher, in fact, than in the license bands. And the thing to mention is that in the technology space, progress never stops, and we have a road map to around 30 gigabits per second with in about 3 years' time, and we are working with Sivers IMA on a road map to meet those sorts of targets. So the real point is that there's always going to be an insatiable desire for more bandwidth. I think we're already able to satisfy a lot of that with our systems in conjunction with Sivers IMA, and we will make sure we satisfy the growing needs as they come forward. So I mean the last -- next point is around Sivers IMA. I think Anders mentioned that we first started a relationship around 3, 3.5 years with Sivers IMA. We effectively codeveloped our baseband, at the same time they did their RF. Because of that, it's been highly optimized for the applications, which we're targeting. Another thing to touch on is that although our customers, and an example of that being CCS and our own products in the rail space, the core technology has been underpinned by a number of research trial networks, which are being backed by the U.K. government. One in particular in Liverpool and the U.K., which is around the use of fixed wireless access for health care. There's a lot of interest in -- across the whole world about how you can provide low-cost internet access for health care applications. With the recent advent of coronavirus, I suspect everyone recognizes how important that is. And then on Millbrook, which is a high-speed test site just north of London, where we are evaluating technology around high-speed transportation and V2X coms. So really the point here is that you can get real-world experience from actual end applications, but you need to be able to debug that aggressively with in trial networks. We also struck a strategic partnership with First Group, which is one of the main network operators, rail operators in the U.K., and that's around enhanced passenger WiFi. And 2 of our key corporate backers, are Renesas Semiconductor, which bought IDT and ARM Holdings, which clearly has a very strong position in the IP space and technology. So next slide, please. Okay. So this touches on basically the 3 verticals, the 3 main verticals, which we see emerging. One, the Smart City area; the second one, high-speed transportation; and the third one, Industry 4.0. What I've articulated here is really a key metric, which is very, very important for all of these 3 different markets. In the Smart City space, the golden figure is you need to be able to achieve a gigabit. It's a significant range. We're able to achieve over 70 meters with the Sivers IMA platform. In the high-speed transportation space, we've been able to demonstrate actually 2 gigabits, tracking a car at 260 kilometers an hour. So the reason why this is so important is that trains clearly get up to that sort of speed. And one of the key markets for this is in track-to-train communication. And then in the Industry 4.0 space, which tends to be maybe a shorter range but very high bandwidth requirements, low latency requirement. We need to be able to achieve these 3 gigabits at smaller ranges. So we're able to achieve all of these in conjunction with Sivers IMA's RF. And hence, we got very -- I think, a very potent solution for these 3 key verticals. The one which I'm going to talk about more is around the high-speed transportation. The Smart City one, I think, has already been touched on quite a bit by Anders and I know it will be discussed in some detail by CCS. Next slide, please. Actually, this is maybe just a slide to underpin why we see ourselves in a very strong position now. I think when we designed the overall system in conjunction with Sivers IMA, we made a conscious decision to actually architect the design for high-performance networking and infrastructure type applications. And because of this, there are a whole range of features, which I'm not going to go through, a lot of them very technical, but these are things which are seen as absolutely critical for operators. And it's what underpins the robustness and the security of the links for operators who are looking for high reliability networks. So next slide, please. So this one is really the start of our discussion around the transportation space. And what we're highlighting is that we really see ourselves as being in our leadership position in one of the key 5G use cases. In the U.K., the concept of high-performance WiFi on trains was recognized about 4, 5 years ago, as being one of the key metrics for improved networking within the U.K. And I think that's seen as being the same in a lot of other countries. So the problem is that people are looking for over 1 gigabit per train by 2025, existing systems are well short of that. In fact, most systems based around 4G-type networks, probably only achieve around 10 to 15 megabits per second on a train. And I think we can all work out that if you've got 1,000 people on that train, the access that you get to the Internet, if you're sharing net is very, very poor. So what we started around 3 years ago was a project, actually with First Group, to understand whether we could apply millimeter wave to this space, particularly unlicensed millimeter wave. And we've run a whole series of experiments and trials, and we're now in a position where we're going to be pushing out the first commercial deployment of these systems in mid-2020 in about 3 to 4 months. And that actually on one of the U.K.'s busiest networks, just south of London. There's a very famous junction in the U.K. called Clapham Junction, which has, I think, more trains going through it than anywhere else in the U.K. So it's a very, very dense network as far as passengers. And we're also in a situation where we're -- because of a leadership position with this, we're negotiating multiple rail operators across the world. And as Anders indicated, discussions are starting with interested parties in Sweden. So next slide, please. So this one explains a little bit about what the actual solution is. And apologies if it's so heavily stylized. The purple block in the middle is the train and going along the track. On the left and the right are 2 towers. And then on those towers are a modem, which is placed on the -- on each of the -- so there are 2 links on each of the towers. And then on the train itself, there's a modem at the front and the modem at the back. And the concept is that at any time, there are at least 2 links onto the train, and we were able to aggregate the content or the links between both of those to make sure you have a very high reliability, very high bandwidth length. Now one of the key metrics for these trains is actually the separation of the masks because, in fact, the main cost of deploying these systems is not the electronics, but it's the hardware and the infrastructure around that, it's actually the fiber to do the links, the power, et cetera, et cetera. So the metric of low power and long-range is a very, very important KPI for this industry. And we're very proud that we're able to achieve significantly greater separation than a kilometer which meets the requirements of the train systems. Okay. By the way, in the bottom right is a link to a video, which people can click at a later date. I'm not going to click on that now, okay. Next slide, please. Okay. So this touches on -- I think I mentioned before about the necessity for extensive testing of these systems before you go for a real deployment. On the top left is a Google view of the Millbrook test site, which is a overall test track. And we're able to drive cars around there at over 200 miles an hour. Interestingly, we have a very strong relationship with McLaren as a partner. So every now and again, they loan one of their sports cars, which is quite a good fun for the engineers. But normally, you can just cope with high car. So the data rate -- sort of, data rates we're already achieving is we can get an average throughput on existing platforms of over 2 gigabits per second and peak throughput of over 1 gigabit. One of the really interesting aspects also of this is the extremely low latency we're to achieve significantly less than 1 millisecond. And considering that the 5G metric is 5 milliseconds round-trip delay, I think that just shows just how extremely high-performance and competitive solution is. So the core technology is there, the systems are being -- going through certification and qualification, and the lead deployment is to be done on the First Group track in the south of England, which is the area which is the Red Oval on the right-hand side. So it's between Clayton Junction and Basingstoke and that will be deployed in the third quarter of this year. Okay. So next one. So that's touched on about the rail. We haven't stopped there. We've always seen autonomous vehicles as being a very interesting space. I think we need all to recognize that the railway, although very exciting market, it's quite a low-volume but high-value market. A higher volume, but lower per unit value is in the autonomous V2X market. And what we're touching on here is the fact that there's a concept in the automotive space, where they talk about fusion vision, which is basically merging a whole range of sensors, from radar, LiDAR, camera, ultrasonic, et cetera. And the amount of data that, that generates within a car is absolutely enormous. Now there is a lot of debate within the autonomous vehicle space as to whether cars should be truly autonomous and not require any connectivity to the cloud or the network. I think there's also -- there's probably a recognition that there's going to be a compromise. And in dense areas, there'll be a necessity to share this sort of very high-performance -- sorry, this high-bandwidth data between cars and around corners, et cetera, et cetera. So very high bandwidth links that are going to be acquired from car to Trackside in car-to-car. So next slide, please. So this touches on exactly that. So the question is, and it's very much an open question because I suspect some of you are aware that there have been lots of standards emerge in the V2X market, which was started and then gone. But we do see millimeter wave space as being -- or millimeter wave links as being very attractive for the automotive area. I think there's a recognition that this V2X market is going to explode over the next 3 to 4 years. They have talked around 63 million units by 2023. Maybe that's ambitious, but it still just highlights just the size of this sort of market. What we find particularly interesting is that Japan and one particular major automotive company. It is setting up a trial around the use of 60 gigahertz for this V2X application. And will be setting up a complete smart city based around this technology towards the end of the year. So the idea is that there's a whole network of access points, which communicates into the cars. And this needs to communicate then to millimeter transponders in the vehicle. But stating the obvious, the size and the cost will be at a premium, hence millimeter wave will clearly win out versus other lower frequency technology in this space, for the reasons which Matt raised earlier on around beam forming at millimeter wave level. So we see volumes just in the Japan market of around 4 million vehicles per annum of that sort of level. So next slide, please. So yes, just a quick summary. I think we're very proud that -- with Sivers IMA, we've developed a solution, which is seen as being best-in-class for a number of key markets. I think we all need to recognize that the real volume at the moment is going to be driven by Smart City type applications, which CCS will be discussing. But verticals which are very, very important and very exciting for us are around the millimeter wave mobility applications, where we've demonstrated systems robustly working at over 260 kilometers an hour. And we're, I'd say, very excited that with Sivers IMA, we'll be able to deploy these systems within this calendar year. And there are many, many other uses of this sort of technology in the V2X type market over the next 5 to 10 years. So exciting times, and I think it highlights that something which initially was thought as being purely for Fixed Wireless Access type applications, there are going to be many, many more applications, which we can put this to. Okay. I think that's the end of my presentation.

Thank you very much. I have actually 1 question already for you here. It's about the tractor train. You mentioned Spain, Sweden and U.K. solving the markets for -- evolving markets for the train. What other European countries are Blu Wireless currently addressing? Is there a demand equally strong in all geographies?

I think the answer is yes. There's a general demand for this sort of technology. In Germany, France, Spain. The U.S., we've had a lot of traction there, Japan. The only area which we haven't actively marketed ourselves in has been in China for some obvious reasons. But no, there's an extremely strong pull for this technology.

Yes. Okay. So I don't -- I see questions for later on now, so we keep them for the Q&A. But thank you so much, Henry. It was very insightful. And we are now moving into Cambridge Communication Systems. And Jamie, who is the VP sales, and he will go through CCS and their technology and what they're doing in the market. Very welcome, Jamie.

Good afternoon, Anders and everyone on the call. I'm sorry, I couldn't be there in-person, obviously, but great to be with you remotely, nonetheless. So if I move on to my first slide. Talk about the sort of background to CCS and to help you understand a bit about the company's history. So CCS was founded back in 2010, and we banked down on our journey to developing sort of SON and Mesh algorithms with self-organizing and self-healing capabilities. And it took a few years but by the end of 2012, the company had proof-of-concept radios operating in the 28-gigahertz band that we were successful in taking into proof-of-concepts with Vodafone and with Telefonica. On the back of those POCs, the company then sort of went into mass production of these devices and shipments began to customers all around the globe, covering the sort of bands sort of about 26, up to about 29 gigahertz, so licensed spectrum with trials taking place in lots of locations and deployments in all over the globe, including China. That initial product that we launched in -- on the back of that -- those activities was a single-channel radio, but shortly after, by the end of 2016, the company had already enhanced the technology and the capability to a dual-channel device that was capable of delivering up to 1.2 gigabits of capacity. And this solution was then selected by Telefonica in the city of London to be deployed all around the Square Mile of London as a network for -- neutral host for backhaul of WiFi and LTE small cells. I'll tell you a little bit more about that shortly. Over sort of the course of time of CCS existence, I think we'd always looked at other frequency bands and other opportunities to expand our capability and we became very excited by the availability of 60 gigahertz spectrum, and we started investing in R&D into that around sort of 2017. I think it's also true to say that right back at the very beginning of our existence, the company had really wanted to partner with other providers from ecosystem for components to build our devices. In the case of 28 gigahertz, that just wasn't possible, we couldn't find the components and the capability in the market that we needed to be successful. But fortunately, in 60 gigahertz it was a different story, and we were very fortunate to build a great partnership with Sivers and with Blu Wireless, and that's been the foundation of the products we've built into 60 gigahertz as we move forward. During the development phases of our solution, we actively participated in a number of U.K. government activities. So we were successful with a very large project in the U.K. back in 2018, which was the Smart Tourism testbed, which our radios we used to provide fiber extension connectivity into the Roman Baths. And this was really the sort of launch of our sort of 60-gigahertz product coming into market. And on the back of the Smart Tourism testbed, we went and rolled out a very successful lead customer program where we began working with very early adopters of this technology, probably right back in sort of 2018 time. A year on from that activity, one of our customers Ontix has actually built out a neutral host network across London and is actually building in 2 different parts of London. A neutral host network that can provide backhaul to small cells, WiFi access points and deliver enterprise connectivity to businesses. And then moving forward to kind of where we are today. CCS has a partnership with a company called ADTRAN from the United States. And I'll tell you a bit more about that later in my presentation. And we also are on a path to not just deploying the original product, but enhancing the product with a new lower-cost CPE devices that are key for underpinning the business case Fixed Wireless Access that sort of have been talked about a little bit earlier today. If I move now to my next slide. Just to give you a little bit of background about the project in London with Telefonica I mentioned earlier. This was a product checked that was delivered over 3 tranches, and the tranches have been built out by Telefonica and a whole ecosystem of partners involved in this. And the final tranche of the deployment actually concluded very recently, and this network today is now delivering in the order of -- 70,000 WiFi users today are basically benefiting from the WiFi network that's backhauled by the CCS radios. There's more than 280 radios deployed today, and they're connecting to 45 different fiber locations around the city of London. And this network is really focused on the sort of financial district of London, so the Square Mile, as it's known. And basically backhauls all of Telefonica's WiFi and LTE small cells in that area of London. Moving on to the next slide. Sort of skipped over introducing myself, but I'm Jamie Cave, the VP of Sales and Marketing at CCS. I'm part of the management team, you can see here. And I've got 20 years of experience in sort of international sales and marketing prior to joining CCS, which I did about 2 years ago. I was been involved with another Cambridge startup that was involved in small cells in 2G, 3G and 4G technology and taking that out to global customers. I came on board at CCS really to lead our customer relationships and partnerships and particularly our partnership with ADTRAN, which we'll expand on shortly. Moving to the next slide. CCS solutions have already been implemented in a number of very high-profile locations and deployment cases. The Telefonica London network that I just talked a little bit about, but we also have our solution deployed on the London Eye, where it provides the WiFi backhaul to the capsules that are on the London Eye, and also provides a synchronization for the new year's eve fireworks display, so that all the fireworks go off in the right sequence from the London Eye. We've been working with Ontix, who have built out this neutral host network in Westminster, and particularly in Trafalgar Square. I'll show you some pictures of that later in the presentation. And of course, the Roman Baths deployment as well. We've been very fortunate to develop our partnership with ADTRAN so that it's now in a great position to drive significant sales growth. And also we now have a new manufacturing partnership with ADTRAN designed to drive down the cost of the devices to the end user. So we can hopefully expand volumes for all the devices. Let me move on to the next slide. So just to talk a little bit about ADTRAN. I'm conscious that maybe some people on the call will not be familiar with them. So ADTRAN is a NASDAQ-listed business headquartered in Huntsville in Alabama, but they have locations all around the world. They've traditionally come from the fixed line telecom infrastructure markets where they have products in ADSL, G.fast, and obviously, in the fiber market, which is now growing in traction greatly. A number of their customers include people like CenturyLink, Deutsche Telekom, Australia's nbn, Telmex and Community Fibre right here in the U.K. And ADTRAN is actually working with many of the competing fiber companies that are building networks in the U.K. today. So on our -- on CCS' doorstep. We initially operated with a distribution agreement between CCS and ADTRAN. But over the years, as we've grown a deeper and greater relationship, they've now moved to invest in the business, and we have now with this license to manufacturer and also they are our preferred global sales partner. So giving us access to significant sales coverage of the globe. And also giving us the ability to get those products to market at a lowest possible cost through a manufacturing partnership. I'm going to move on to the next slide. So the market drivers for CCS is really focused on the gigabit society that's been emerging over the last few years. Government targets here in the U.K. are over the next 5 to 10 years to drive 100% penetration of home passed and buildings passed in the market. And we are not alone in that, in fact, the U.K. is quite a long way behind the rest of Europe and trying to achieve these goals. Our most recent budget announced by the treasury last week was a SEK 5 billion investment of public money to help spread gigabit-capable connectivity across the U.K. by the end of '25. And it's recognized, I think, globally now that building these fiber networks -- and if you can build a fiber network to a location, that's clearly what the operators will do, but it's almost impossible to build fiber everywhere at a cost-effective price point. So our solutions, which we like to label virtual fiber will certainly play a key role in extending the reach of the existing fiber networks to the end user locations, be it enterprises or homes. And kind of coupled with this drive for gigabit connectivity to buildings and homes and enterprises is the drive to build out 5G networks and the demand that, that will place on the typical solutions used for this. It's been widely acknowledged that the speed of deployment of small sales across the globe either in 4G or in the future in 5G is prohibited by the bottlenecks to get traditional backhaul into those locations. When I talked about the Telefonica project earlier with 45 different fiber points around London connecting to several hundred CCS radios, the complexity of trying to take fiber to each of the lampposts where those radios is installed could be enormous. And we would probably still be only a few hundred lampposts lit up if we're waiting for fiber to come in. So the ability to go faster and to flexibly reach locations where the operators want to put their small cell infrastructure is key to having flexible solutions like ours in place. Move on to the next slide. So I'm going to just talk about the problems and the markets that we are addressing, which I think we've sort of just touched on, but I'll expand on that a little bit more. Just to the next slide. So the raison d'etre for CCS. The cost to deploy these fiber networks to 100% of homes and businesses is extremely prohibitive. And FWA Fixed Wireless Access can help solve this problem. Because in many cases, not in all, but in many cases, it will be cheaper and easier to deploy. We're certainly not suggesting that it should be a network built entirely of radio. We see that the 2 have to go hand-in-hand. And that is one of the very key things of our partnership with ADTRAN is that with their portfolio of fixed line and fiber solutions they are able to couple together the radio offering from CCS to offer a complete solution to the network builders. And mobile network operators, they're densifying their networks. They have to densify them to keep pace with the data demand and the congestion that is building on those networks. Small cell deployments have often been restricted by limitations of existing backhaul and so unlocking that opportunity to densify those networks, take the capacity of the mobile network to the location where it's really needed with flexible Mesh backhaul solutions that we can provide either our licensed portfolio in the 24 to 29 gigahertz or more commonly at the moment into the unlicensed 57 to 71 gigahertz that we have been working on here. Move to the next slide, please. So these applications that we've been touching upon. So some of our customers will be implementing all of these, but many of them will maybe just touch on 1 or 2. So the small cell backhaul or the WiFi backhaul, which we're already implementing with people like Telefonica, where they are connecting small cells onto lampposts or other street furniture and looking to put mobile connectivity down at street-level dependent upon wireless backhaul to mesh those lampposts together and give them interconnectivity back into a suitable fiber location. We obviously see also people looking to expand this to add CCTV backhaul and smart city backhaul for other applications in the same area. And then on the other side of this slide, the enterprise access and Fixed Wireless Access market where essentially extending the reach of a fiber network to either give connectivity to a location that can't be economically reached by fiber. Or in some cases, to offer redundancy and protection to an existing fiber network to overbuild and provide additional connectivity options to the operator. Moving to the next slide. So just to give some numbers to underpin this projection about the small cell densification that we see going on. So these figures are from BT Wholesale's white paper. And they show that the projected number of small cells in the -- required in sort of '19, '20 time frame were about 10,000, where they see that multiplying up by a factor of 4 towards the end of '21. And this obviously coincides with the launch of 5G and the need to expand the depth of the network and also to deliver this capacity crunch that they are facing. Moving on to the next slide. And the gigabit Fixed Wireless Access market. So the U.K.'s fiber to the home and homes passed numbers of today in the -- of the order 8% or 10%. And the forecast from fiber to the home council is that this will grow to something of the order of 28% in the next 5 years. That's significant and aggressive growth, but it shows we're still a long way away from meeting the government targets. And they obviously need assistance and solutions that can complement that build-out to increase and accelerate the pace and get the build price down and also get the time to revenue and to market to reduce. So we're involved in a lot of these discussions with the fiber builders about how to extend the reach of their networks and help them achieve their kind of costs per premises connected, which is one of their key metrics that they're driving towards. Moving on to the next slide. And our technologies, products and solutions that I'm going to go on to talk to you now, so on to the following slide. So when CSS built our solutions, both at licensed spectrum and then moving into sort of 60 gigahertz, the unlicensed opportunity. We've been conscious to try to build solutions that deliver mobile operator and fiber operators sort of TCO, so we're trying to give the total cost of operation of these networks. And we found that building this multi-point to multi-point Mesh capability was extremely important. This avoids operators having to provide dedicated connectivity to every cell site and the ability to mesh the network together, in many cases, in the Fixed Wireless Access Market, installing on an enterprise, a Mesh node that gives you this multi-point capability, naming you can capture another 5 or 10 customers that are in a location behind it as a lot of this technology uses -- requires line of sight. So opening up that opportunity by building a Mesh. Also these networks need to be self-configuring, self-optimizing and self-healing to make them as simple and as straightforward to deploy as possible. And we've also -- I think we've heard from a couple of the other speakers about how to manage interference and how important that is, getting the high capacity into the networks. And from CCS's point of view, the ability to then deliver carrier-class quality of service over these networks so that operators can deploy things like a small cell at the end of them is very important. Can I move on to the next slide? So working in partnership with Blu Wireless and Sivers. As CCS also adds on top of the deliverables from our partners, our own cognitive algorithms to look at how to maximize the interference management capability to ensure that we deliver these self-organizing and self-optimizing, self-healing networks, and also look at how we can ensure the quality of service around the network and delivering the right amount of bandwidth where it's required in the network. Just going to move on to the next slide and touch on some of the CCS deployment cases. Moving on to the London Eye slide. So this was a CCS network built several years ago using 28 gigahertz. And as I've mentioned, it provides the backhaul for all of the WiFi across the pods in the London Eye. And we actually have quite a kind of unique set of antenna arrangements where these systems are intended to be stationary, but the London Eye is obviously moving so it's been designed in such a way that the nodes look like they're stationary towards each other, but are, in fact, moving into synchronization with each other. So this system has been in use and is still there today. So if you are on the London Eye, visiting London, and you're using the WiFi network, then it's being backhauled by CCS radios. Moving on to the next slide. So Ontix, 60 gigahertz customer deploying neutral host solutions in London. Ontix was successful in acquiring the rights to the street assets in Bexleyheath and in Westminster, and they are building a network to deliver neutral host services where they will offer the access to both the lampposts or the other piece of street furniture and the transmission service to the mobile operators. Mobile operators can then install their small cells on these lampposts and provide coverage and Ontix delivers a service of transmission to backhaul that into their data centers. In addition to activity with the mobile operators, they're also backhauling WiFi infrastructure and even using the same infrastructure to provide an Enterprise Fixed Wireless access to businesses that are in locations that are finding it difficult to get fiber. So there's one particular example, a street in London, SoHo, where it's a lot of production companies based on this street, but the street is built of cobalt stones and there's impossible to get wayleaves to build a fiber network down that Street and so the only solution was able to put a radio solution in there to deliver the connectivity to those businesses, and that's been hugely successful. Moving on to the next slide. Ontix has recently announced that they have deployed and enabled their London's first Hotspot 2.0 WiFi network. So this is a partnership between Ontix and a company called Global Reach. This provides mobile network data offload for international carriers when their customers are -- when their subscribers are in this location. So this is built out in Trafalgar Square. Hope you can see from some of the pictures there. And we have our CCS radios on lampposts all around the square. The picture in the middle gives you a bit of an idea of the network topology, and these are connecting and backhauling the WiFi 2.0 hotspots, so that when a roaming subscriber comes into this very dense hotspot for tourists, their mobile data can be offloaded to the WiFi network and backhauled in that way. And then moving on to my next slide. Just an example of a location where gigabit connectivity using wireless mate not just sent, but also from an economic point of view, but also just the time to market advantage that this gave. So this is a village in Wales, which was basically receiving Internet connectivity, which was so low that the people living in the village couldn't use applications like Netflix. And so Broadway partners who we partnered with for this project, built a 60 gigahertz Mesh network around the village and connected it back with a backhaul connectivity of 1 gigabit, distributed that service around and was able to give a throughput to the customers in the village completely transforming the wait that they would have had for several years for another network providers to come and build out in the village. And then to my last slide. Thank you for listening to what I've had to say. If you'd like to know a little bit more about CCS and our 60 gigahertz solutions. There's actually a webinar planned for tomorrow by Light Reading and sponsored by ADTRAN and there's some details there on the slide.

Thank you, Jamie. It was a very interesting presentation. I have a few quick questions here. So how big interest do you see right now for your 60-gigahertz node?

So today, we are probably involved in more than 25 or 30 trials, pilots or deployments, and that number does seem to be growing by 5 to 10 new opportunities to open up the solutions to those markets every month. A lot of our sales activity is clearly with our partner ADTRAN. And we are very focused on taking the product to market together in that way.

Yes. Thank you. And another question then, how is it sort of divided between the sort of you had this rural thing and you also have sort of city networks, where do you see the most interest?

It's a very good question. I think it's possibly a little too early to tell, but certainly they both have pretty compelling cases and the fiber companies are looking to build their fiber networks to reach as many locations as possible. A lot of them are actually driven by this metric of homes passed or buildings passed. And the -- when you look at and analyze their challenge, very often they have fiber up to a certain location, but are waiting for wayleaves to be unblocked or permissions to enter another location. And so they can quickly move to market by extending service using radio as a kind of complement to their fiber network. On the flip side, the rural case is also quite compelling because many of these larger businesses don't want to go and extend their capital to build networks in rural villages. A lot of government funding has been made available to try and address that challenge. And wireless provides a very, very viable solution to complement that and to support those builds. So I think it's fairly evenly distributed at the moment, but we'll wait to see how it develops.

Okay. Thank you. I have a couple of more questions. I think the time is now to move on. But this might be a difficult question for you, but British Telecom and Virgin will shut down their PSTN networks by 2025 and begin forced migration in early 2023. Is there current fiber investment large enough to handle these transitions? Do you think that the possibility to do so finish the migration in fiber by 2025? Or will there be a delay?

Yes. Thank you.

Yes, you're welcome.

Yes. So I think as I've highlighted in the presentation, perhaps the U.K. penetration for fiber today is at 8% or 10%, and we're talking about reaching sort of 27%, 28% in 5 years. The government's targets are obviously completely different and much more stretching. So these businesses have a challenge. There are a number of players in the U.K. market, Community Fibre, CityFibre, that are competing to try and build these networks to stimulate the activity in the U.K. as well as working competition with some of those parties. So probably not my place to sort of say whether they've deployed enough. But certainly, it's a very vibrant space with probably more than 15-or-so fiber companies building out networks all across the U.K.

Yes. Okay. So the last question before we move on. The wireless backhaul market is projected to reach SEK 6.3 billion -- or SEK 63 billion by 2025. From which level are we starting? Do you know the market size in 2019? And yes, from my point of view, I mean, the wireless backhaul in general have been there for a long while, of course, but do you see where it's starting from?

Off the top of my head, I couldn't give you the numbers. But of course, this market is a broad consideration of point-to-point radios as well as Mesh radios and the like. So that number -- the numbers that you're referring to encompass all of that. So I could probably go and point -- pull some different numbers to support you in terms of what the 2019 was but...

No, I think there is -- as you say, it's a very broad market. And the market you are addressing is also a bit newer than the classical point-to-point and the Mesh networks are quite different. So okay. Thank you very much, Jamie. Please get back when we get to the Q&A later on. And now we're going to bring in CCS customer actually here from Sweden is Micronat with Jonas Hellström and also with the VP and you guys can present yourselves.

This is Jonas Hellström. I'm CEO from Micro Group in Sweden. Next page, please.

I can present myself as well. And my name is Johannes Winqvist and I work as the Sales Manager for Micro Group as well. So...

Yes. Micro Group, we have many different companies in the group. Invoi is one of them. We work with rock machines. We produce wireless system for these big machines. It's 100 tons machines. Wireless distribution, we work with wireless products or like CCS products. Micronät is the biggest area for us, the biggest company. And that company works with connecting wireless connections. We take -- next picture. We have 2 different brands. We sell it under the name 5XG and 6XG. 5XG is long-distance connections, and 6XG is short-distance products like CCS products. And now, Johannes?

Yes. So let's talk a little a bit more about the 6XG product and our personal lineup. So if we first start with the staff, we use our own staff all the way. So from technicians, customer service, installers, everything under the same roof, which makes the company very efficient, and also, we can keep down the costs and also the time. So next slide, please. If you go into the technical details about the 6XG product, which is the CSS, it has a range of 300 meters and 300 degrees field of view. The capacity is 12 gigabits per second for each node and connects to fiber optics. If you go to the next slide, you can see how we build the network. So chosen locations is connected to optical fibers. And from there, we send the signals wireless to the other base stations, which is connected via the smart hill system and builds up this type of mesh network. So if you compare it to the traditional fiber, so if the fiber gets cutoff, the signal takes another way automatically. Next slide, please. If you look into the residential networks, in some cases, there is a network already, which we can use. And in some cases, we draw the cables our own. So if you start at the roof, we place the basement -- base station, and the collection box is placed either in the attic or in the basement. And from that, there we connect all the apartments or business companies. Next slide. If we look into the traditional companies, there is usually one network owner , one ISP, and somebody build residential networks. In our case -- if you update the slide, it's the same one. Yes, thanks. We do this our own. So we are both networks owner; ISP, providing TV, broadband and IP telephone; and also building the residential networks. And like I said before, this makes the whole company very efficient, short-leading times and also keeping down the prices. Next slide, please. So for example, this is in Swedish, but we have a campaign right now, which is 1,000 megabits per second for business to business, which is SEK 995, which is about $100 per month, including the network service and also the subscription. So that's quite nice. And over to Jonas.

Yes. Last year, we connect around 1,500 customers. And this year, we're going to connect around 3,500 customers. So we really try to speed up. And in many of these customers, I don't know, we connected with the new 60 gigahertz products we have from CCS. We also have a movie. I think we can show that movie.

It's on the next slide.

In the presentation, unfortunately.

Okay.

But anyway, I don't know if you have more things. I have a few questions. Is that okay?

Yes, of course.

So yes, one thing that you mentioned to me before, Jonas, is that your competitors are, of course, selling fiber, and what is happening now in the market about your fiber competitors? And how much are the enterprises paying for the fiber compared to your solution today?

Yes. We have a start in our initial suite to produce these products. And the fiber costs around SEK 5,000 per 100 megabits. So it's expensive for business customer. And this competition from the Wireless system is very interesting for many customers, so we have signed lots of contracts the last month. And now we've tried to figure out to produce new systems in new cities.

Okay. So yes, I think we are at the Q&A. Now in general, I'm seeing people are connecting in here now, and we're going to -- we're a bit early -- about 10 minutes early, but we can start some of the questions here, in general.

Let's see. Is Sweden one of the leading countries regarding 5G technology. What do you say, Jonas, who is in the business?

We have not seen so much 5G, but I think Sweden, maybe Norway could take -- one of -- could be one of the first countries to produce 5G. But it is also important to understand that Sweden is a very big country. So it's not easy to produce 5G to the whole Sweden, of course.

Yes. If we look at -- from my perspective, talking to PTS, they are doing their auction now for the sub-6 gigahertz 5G in Sweden, which is sort of, I think the type of 5G that will be available when you're not talking about the unlicensed thing that you are using from CCS. That will be sort of coming in the coming years. When it comes to the millimeter-wave licensed 5G, PTS are talking about 2026 or something like that. So it will take some time, I think. And I think Micronät's product using the CCS solution has and will have a very good positioning for these kind of services, and I think we're seeing the same. And Jamie, you can correct me if I'm wrong, but if we look at the U.S., which has one of the largest number of what we call the Wireless Internet service providers that Micronät is, I would say, one of the new leaders in Sweden around this, what do you say about the U.S. market? Do you see sort of a lot of kind of Micronät companies over there?

I absolutely do. And through ADTRAN, we've engaged in turning up pilots and early deployments with about 5 of those even this month. So there's a healthy amount of activity going on in that ISP space as well as some of the more sort of larger traditional fixed-line companies.

Yes. So yes, do you have an update regarding the railroads in Sweden? I think we answered that question already. When it comes to the market there, I mean, it will take some while before we have gigabit train solutions. So I think U.K. will be the one who's the driver. What do you see, Henry? What -- who is the first driver in Europe for this? Is it U.K.? Or do you see someone else also moving up quickly?

Sorry. Can you hear me?

Yes.

Sorry, who is the...

Who is the leader for gigabit train in Europe? Is it sort of U.K. who's in the lead? Or do you see other countries coming up?

Well, actually, I think interestingly, the U.K. is in the lead, largely because the fact that we're helping drive that within the U.K. So as in because we've been working with First Group, I think we'll be one of the first countries to deploy it, but I don't believe and I am clear, I think, it's wrong to suggest that the U.K. is the largest market. France and Germany are very, very interested in this. And clearly, they've got some very significant track lengths, high-speed trains.

Yes. Okay. Thank you. And if you look at the overall, like the 5G market in general, there's a question here, what's sort of is the businesses in the countries ramping up to 5G now? And -- or they started to create sort of a foundation for the 5G networks everywhere? Or where is the biggest market, in general, for this technology right now?

Sorry, is that a question to me? Or...

Yes, I think we can ask both Jamie and yourself. But start you, please.

Okay. I think the whole 5G issue is quite an interesting one in that if you talk with many governments, what they're most enthusiastic about is actually gigabit capable connectivity to their populations. They are less emotive about whether it's 5G or whether it's enhanced 4G or whether it's fixed-line broadband or whatever. I think if we take the view that 5G is gigabit-capable connectivity, then I think there's an enormous pull for that market. If your question is, conversely, is there a massive pull for mobile 5G rollout? I suspect that's less dynamic at the moment. I think the real pull is around fixed wireless access and certain verticals where there's a real need for this sort of technology as in the track-to-train communication for rail had. I also think from a worldwide perspective, we shouldn't forget the improvement of densified 4G networks. A lot of countries are very interested in, rather than adopting 5G, densifying their 4G networks where they need high-quality backhaul and dynamically configure it backhaul. So it's quite a -- I think it's quite a dynamic market. And I think we need to be careful about being overprecise in what we call 5G.

Yes. Jamie, do you have a comment?

Yes. I mean, I echo and agree with everything that Henry said and just add may be a few other things, which is, the thing that's really driving this for operators is video. Video is hammering the networks, and the operators are having to react in some way. I see a lot of focus on delivering the gigabit vision, as Henry is saying, and that stimulates the demand for increased number of small cells to sort of densify network, like Henry has said, and a lot of the early 5G networks are actually being deployed in a way that 4G and 5G are coupled together, so you need one to underpin the other. So yes, I think that's the kind of focus we see from the operators we're talking to.

Thank you, Jamie. I have a direct question to Blu here as well around a vehicle to the X or the connected vehicles and especially around Japan, it is dedicated short-range communication or 5G that will be vehicle to the X standard or are we talking dual mode? Are you...

Okay. Right, I think so yes, probably -- I mean the question is probably about are they looking for a single-dedicated link from the car to the cloud. And I suspect the answer is no. I think there will be -- there could be a 3GPP-type link, which, as you say, has maybe got longer range and lower bandwidth. But I think, in particular, the 60 gigahertz technology is exceptionally good for very high bandwidth bursts of data where you would effectively flood the 3GPP network if you were to do that using conventional LTE and 5G technology. So I think it will be a combination of both. I think automotive companies are reluctant to effectively become an MNOs base station. So they want to have an element of independence from the MNOs. So I think there's a battle for control between the car operators -- sorry the car manufacturers, the operators, et cetera, how they build their relationship.

Okay. A follow-up question here. I'm not sure what the person meant. Toyota so far has used Samsung Harman so far, I believe. Your mentioned 60 gigahertz ambitions, is that becoming a national Japanese standard for vehicle-to-vehicle?

Okay. Again, on that, I think what I'm stating is, it's a candidate. I think I mentioned in the presentation that we've all been aware of multiple vehicle to V2X-type technologies, which have been deemed to be standard. And largely due to the long time that it's taken to deploy them. They've ended up running out of steam, and then another standard pops up, which never quite establishes itself. So I think really what I'm highlighting is that the automotive companies are now looking to take control of their own destiny a little bit and force things along to just make a decision. I wouldn't want to judge whether it's going to become the default standard or not, but it's certainly a candidate.

Yes. And a follow-up on that. I mean, regards to China regarding this as well compared to Japan, do you see any developments there?

We did have lots of interest. As Anders, you're aware -- well aware, from a number of Chinese companies. There were some issues, let's be open. The trade war between the U.S. and China, which made it very difficult to transfer technology back and forth. But let's see how it stabilizes. I think coronavirus is also harming our ability to interact with China at the moment. I think it's going to be the end of this year, early next, before we can really establish and understand how to approach the Chinese market.

Yes. So yes, around that, I mean, we had to go forward without the IDT modem because they were U.S. based. So we are now in China but without IDT instead. So okay. So let's do some photonic questions here to Billy. Let's see where we have them. Let's see. So yes, when you are doing or get evaluated against customers sort of RFQ-wise, what are the sort of technology or preproduction scoring that we get? What's important for the customer when you win business? I don't hear you now, Billy. It seems like your mic is off or something.

Can you hear me now?

Yes, please go.

Okay. Thanks. Interesting question, actually. I've been doing RFQs on and off basically for 20 -- more than 25 years. And normally, the process is one-off coming in. The company does a bid. The bids will be assessed against an RFQ score such as you asked. But actually for CST, every RFQ we've had has been directly to us. It's not been to any other competition. And the reason for that is, actually, for the technologies that we're offering right now to the solutions and to these Tier 1 companies, there are no competitors. So we don't -- every RFQ that we've ever done, we've actually had approved and had a PO on the back of it. So it's just not something that I'm familiar with at all for CST yet.

No. I think that's a good answer. I mean, right now, there is no competition in that kind of space you are. I mean, if they want to go, they go. So -- Okay. And...

And actually, they come -- elaborate this a bit, it actually comes down to, basically, we have an idea of how to do some -- or an idea of what they're looking for, and they come to us to basically work out how to do that. And then we, of course, create IP around that. So it's their design, but it's our technology, which allows us then to basically scale that business up.

Yes. So there is also a follow-up question on your presentation. The Fortune 100 customer in the U.S., are it one -- or mainly focused on one, or is -- are you focusing on more Fortune 100 customers?

We have 4 right now.

Yes. So they are in different phases, of course. And it depends, and we will go public as soon as we have something more in that. Yes.

Yes. I mean, obviously, I'm bound by confidentiality on that, very, very strict confidentiality. If everybody knew these companies, they would understand that. But these are companies that people in the Street know about, and these are companies, and must I say, we are directly -- the projects we're working on are linked and tied into their board updates so, yes, different levels with those companies.

Yes, there is a follow-up question. I don't think we should answer that really because we don't want to give forecast on that sense because they're asking when we are able to give a time frame when the Fortune 100 will come in. But I said that before to the market that I mean, we don't want to do that because it's always difficult, and thing's takes time. It's on a Board level on a very large company. So by not giving anything there, I think it's better to do that right now.

What I can say, just to elaborate, and Anders you're aware of this, obviously, we're in discussion with their, as I said, with these companies' senior leadership team about that expansion and where that would happen and how we would do that. And CST Sivers will basically be the driving force of actually making that happen. So we're working with various governments, et cetera, in order to get -- the actual funding for the initial pilot is not actually that big compared to the semiconductor world. So 30, 50 marine-type infrastructure, which pays for itself in military. I suppose, yes, we're at those discussion stages regarding the expansion.

Thank you. We have a question about Cambium Networks. The long-term contract with the TRX BF02, the license chip, please comment on the fundamental of the contract. And also, why Cambium in the end should go for CVC instead of your U.S. competitors? Yes. So one of the things behind that is that we have done a long-term contract. And we're already working with them for the next-generation chips. So they're actually involved in the development. They've chosen this chip. They're seeing the future. And the reason behind it is that the high integration level we have in the chip compared to the competitors makes the cost of the product using that chip, both on the small-cell side but also in the home unit, the CPE, as it's called, and that's what they've sort of gone for and like about the product we have. Let me see. Can you discuss eventually corona effects on 5G rollouts? If the situation gets worse, could there, for example, be a positive affect from network congestion if everyone is working from home? Yes, I mean, from my side, I mean, 5G is building up now. Of course, there might be a risk that the networks is delayed in rollouts and so forth if it gets worse. But at least from my point of view, the long-term view is that the network is built now, and they are starting building, and it won't go away because of corona. Can I have some comment from Jamie, who's closest to that? How do you see it?

Yes. I think, Anders, like you, I suspect that we will see, over the next weeks or months, some slowdown in the network build out, but I don't think it will change the long-term objective. One thing that may come out of corona, of course, is that more and more people are going to work from home, and that may become a more normalized experience even post-corona. So there will be even more demand to have gigabit connectivity to homes accelerated even further so whether it be 5G or just gigabit services generally.

Absolutely, I fully concur with that. Let me see. No, I don't have any more questions right now. We're getting to half an hour left, but we'll see if there comes in any more questions. I can ask you questions while we're waiting. So when you look at your competitors, Jonas, Micronät, what are the typical competitors you see in the Swedish market?

For the wireless system, you mean?

Yes, wireless and fiber. What is it sort of -- where do you see that you differentiate yourselves and compared to the different options that customer has?

Well, in Sweden, we don't have so many other -- we don't have so much competition from other companies. We don't have so many wireless companies. But of course, we have competition from the fiber. But when we start working in new areas, especially with the new 60 gigahertz products, when we start discussion with customers, I'm not sure how many we take, but we sign very, very much contract. And I think the fiber company is more in kind of shock because I don't know what they're going to do because they cannot sell the fiber connections to much lower costs, so they have nothing to do. I mean, we have lower price, and we can produce much more connection very, very fast. So the competition from the local fiber companies is not so strong.

Okay. That sounds really good. Okay. So a question for CCS. Could you please elaborate why you decided to go for Sivers IMA? What's your view on the process for approval licensing permit for small cells in the U.K.? There are 2 different questions there, but...

Yes. So I think I did touch on this in my presentation. I think when CCS built its first product, it scanned the market for a long time trying to find solutions that would ease the journey to realizing a product into the marketplace, and concluded, it couldn't find any and had to build many of the components themselves. But in 60 gigahertz, of course, there's an ecosystem starting to open up. And I think it was a great opportunity to partner with another U.K. technology company in Blu and a great -- we certainly evaluated the Sivers offering and found that it gave us a number of advantages, particularly that ability to cover the 57 to 71 gigahertz band, which many of our competition still cannot achieve. So and anyone who gets involved in the sort of more technical side of this, the 57 to 71 gigahertz has 6 individual channels and a number of those channels are actually affected in terms of radio performance by oxygen absorption. The 2 that performed the best are actually the higher channels that are nearer to the 71 gigahertz. And most of the other products in the market are not covering those channels. So the ability to cover that whole space was a really key factor. And I think it's been a very interesting and enjoyable partnership with -- across the 3 businesses. So I think it's good reasons. And then just to answer the second question, which was about sort of small cells approvals. This may vary a little bit and certainly is -- a topic of some discussion going on in certain other forums at the moment. But there are some specifications in the U.K. often from city councils about sort of de minimis specs for devices that can be placed on street furniture, and certainly, the CCS radios were designed to meet what the de minimis spec was to be able to deploy those devices on lampposts without having to apply for an approval every single lamppost. So that situation may be a bit fluid, and you need to understand and determine it for each operator that's going to deploy them and the manufacturer of the radios, of course.

Okay. So do you see that this sort of licensing schemes that are upcoming? And are they supportive of substantial increases in numbers of small cells deployments in the U.K. in the future?

I think as we talked about the demand that we see from operators in the U.K. is -- Telefonica in the U.K. have always been a small cell -- pro small cells and have deployed a number as you've seen in that city of London project. BT have certainly started deployments in the last couple of years with EE to increase the number. Even Vodafone is actively looking at this in the U.K. as they start to consider how they'll build out there 5G network and probably the densification of their 4G networks. So certainly, we see interest and demand from those operators in the U.K.

Okay. Thank you, Jamie. We have another question. How's it going around the Fujikura project, time frames and volumes? I would say that they just recently for the Mobile World Congress released their sort of module, and it's a module based on the Blu Wireless software, the IDT modem and our hardware. So it's basically a module that you can use and build into your technology and use it for different applications. And as Henry mentioned, they are focusing on vehicle to the X. They're focusing on backhaul and point-to-point and also Fixed Wireless Access. So they are in several different trials as far as we know. And I assume that during the year, we will be able to do -- sign the supply agreement with them as well, and they get into volumes, hopefully, by the end of the year, at least. That's the best estimates we have right now. Another question from [ Daniel ] to Blu Wireless, Smart City, high-speed transport and Industry 4.0. If -- in your view, will traditional operators have a natural role to play in these markets? Or are these use cases segments more about unlicensed and regional license spectrum market?

Okay. That's a very difficult question to answer because I think classic MNOs will have a role to play in all 3 of them. I think maybe we should turn it on its head and just think of what is actually driving or encouraging the role of unlicensed spectrum in these 3 sectors. And I think in the fixed wireless access space, it's all down to cost and needs of deployment. Clearly, one of the key advantages of an unlicensed band is you don't have to -- it's unlicensed. You don't have to get a license, and hence, you can deploy things without your own separate license. It's also quite -- I mean, it's a low-power technology. Compared with license bands, the 60-gig unlicensed products are probably around a factor of 4 lower power than the licensed technologies for the same sort of level of performance. And power is actually very, very important. The area where I think unlicensed has an issue is that some operators are very reluctant to use unlicensed bands because they're very married to the license base because of security of basically robustness of links, et cetera, et cetera. But I do think it's going to be complementary to the license space. So in the Fixed Wireless Access area. And as Jamie mentioned, the unlicensed Fixed Wireless Access, you can use that for backhaul, which effectively empowers the MNOs to go to places that they couldn't otherwise get. So you can think of as being synergistic with fiber. In the transportation space, I think that's actually quite a different one in that -- I think a lot of the rail operators are very keen on having their own effectively private networks. And one of the quite interesting aspects of a train is if you have a train with 1,000 people in it, and that passes through a conventional cellular network, effectively, it pulls all the data into that train. And hence, it causes access problems for people who are not on that train. So in many ways, MNOs are quite keen on the rail operators actually having their own separate network, which doesn't interfere with other people outside of the trains. So it may well be that the MNOs are not so worried about the train stuff going in the unlicensed private network space. And then in the factory 4.0 (sic) [ Industry 4.0 ], I think there's been lots of initiatives in Europe around the idea of having small local 5G, very low-cost licenses being given specifically for factory applications. So I think it will be a combination of the use of license and unlicensed bands in those areas. But I think there's a big open question as to what MNOs' role is in 5G as 5G becomes more and more around the Internet of Things and data transfer rather than voice and classic consumer thing. it's going to morph into a very different space over the next 5 to 10 years.

Thank you. Yes, a follow-up question on that. What would Blu Wireless see your key -- who is your key customers, system integrators, direct sales or large enterprise and municipalities, train operators, et cetera? Where do you see your key customers?

In the Fixed Wireless Access space, we see ourselves as being a technology provider. So people like CCS and others, who are the OEMs, we want to enable them for high-volume manufacturer. For the transportation space, particularly the train, then in that area where we're dealing directly with operators and system integrators, then we'll be selling modules, complete systems to them. So it's different depending on the market we're aiming for.

Okay. Thank you. I think that was the last question. I don't have any more right now. So I like to thank you all for listening in, and I want to thank all the speakers. Thank you so much for being available and doing this online as well with these times. I think it's been a real pleasure to have you, and I'm looking forward to see you all guys again soon. Thank you so much for listening in, and we finalized the Capital Markets Day with this today. Thank you.

Okay. Thank you.

Bye-bye.

Bye-bye.