CommScope will begin the new year and the new decade reorganized into four segments—Venue and Campus Networks; Broadband Networks; Outdoor Wireless Networks and Home Networks — aligned with what it believes will be the primary growth opportunities for networks in the future.
The change will position the company to take advantage of some of the fastest growing markets, including hyperscale, multi-tenant and cloud data centers; macro and metro layer cellular networks; in-home networks; and professional services.
The reorganization was informed by the acquisition of Arris, which operated in the core-to-edge network solutions space. But CommScope’s reasoning behind the reorganization is really to take advantage of the convergence of the wireless and wireline worlds.
“What were disparate networks are now converged,” said Matt Melester, senior vice president, CommScope Technology Strategy. “RAN solutions are beginning to look more like data centers. The same thing is happening in the cable industry. The same thing they are doing on the RAN side is being done on the DOCSIS [Data Over Cable Service Interface Specification] side, in terms of virtualization and splitting the stack.”
Prior to the Arris acquisition, CommScope was divided into CommScope Connectivity Solutions (CCS) and CommScope Mobility Solutions (CMS). After the close of the acquisition, the company added three segments – Customer Premise Equipment, Network and Cloud and Ruckus.
“Previously, we were aligned somewhat by products and somewhat by customers,” Melester said. “We are now trying to align more on markets, because the customers change. For example, we used to sell 90 percent of our DAS and small cell systems to carriers, but now we selling more and more to enterprises.”
CommScope now has a view of the overall communications network from the cloud to the core to the consumer. “We are playing in all those spaces. We wanted to learn the entire network, not just a piece of it,” Melester said.
With that overview, CommScope will be looking for solutions in trends that cut across multiple segments of telecommunications, such as virtualization, cloud, machine learning and analytics.
“Our machine learning analytics framework will be same across all segments, but there will be the ability to differentiate for different business segments. It will be an open source community within CommScope,” Melester said. “Equipment and capabilities can be leverage across different disciplines. What CommScope has to leverage is the visibility of these trends across different business units. Take good ideas in one space and move them to another space.”
The combination of CommScope and ARRIS, which was announced in November 2018 and completed in April 2019, created a massive company with $11.3 billion in revenue. The next step is to create a nimble company to take advantage of the synergies.
“The organization of the company can either impede or facilitate innovation. We don’t want one division to have to learn something that another group has already learned,” Melester said. “Through the CTO’s office we are building cross-segment teams to work on a common goal. That might be a common platform or common framework. Hopefully breaking down silos to work on technology will get us faster to market.”