Category: 5G

5Gstore.com Scheduled Maintenance Alert

As with any technology, there are periodic updates that are needed to keep things running smoothly. The same goes for the 5Gstore.com servers. 

To avoid any potential issues, please be aware that our team has scheduled maintenance. This will take place on our main server this Sunday, August 21st from 12pm – 12:30pm CST.  

Once the maintenance is completed, everything with 5Gstore.com will return to normal. Should you experience any issues outside this scheduled period, please reach out to our team by phone, email, or chat. 

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How Important is Latency to 5G Users?

According to Ericsson, user experience is all about “time-to-content” – in other words, how fast does my video start or my webpage load after I click to open it? Based on a study the company recently conducted, they found that latency is rarely a factor when it comes to user satisfaction. 

Reiner Ludwig, Strategic Product Manager in the Business Area Networks at Ericsson wrote a blog on just this – “Latency hardly impacts smartphone user experience in advanced 5G and 4G networks.”

In describing the study, Ludwig says they used high-end smartphones in a controlled environment. These were all requesting popular content (YouTube, Instagram, Amazon, eBay, Uber, etc) in an automated way. 

“For the latency measurements, we have ensured that sufficient up- and download speeds were available to the devices at all times: an uplink throughput “at click” of at least 1 Mbps and a downlink throughput “at click” of at least 20 Mbps,” he said. 

Tools and guidelines for the study were provided by Google on web.dev. This allowed them to see the relationship between time-to-content and latency, and time-to-content and up- and download speeds.

What is Latency?

Ludwig describes latency as the time it takes for a device to send one small ‘echo’ packet to the serving content server and the corresponding ‘echo-reply’ packet to return to the device. This period of time is also called the round-trip time. 

What isn’t latency? It’s NOT the same as time-to-content. This is where many people tend to misunderstand. 

Where is Low Latency Most Helpful? 

While low latency is important to online gamers, it’s more crucial for machines. 

“Machines, not humans, can benefit from the ultra-low and ultra-reliable latencies that only 5G can provide. For example, think about video-controlled high-precision robots in a smart factory. Here, you might see latencies below 10 ms, i.e., ultra-low, and without latency spikes exceeding 10 ms, i.e., ultra-reliable. Meeting these tough requirements is one of the key drivers behind Ericsson’s launch of a new product offering targeted at Time-Critical Communication,” says Ludwig.

Surprisingly, us humans are hardly able to tell the difference between 30 and 50ms of latency. Ludwig explains that 5G and 4G latency in the U.S. is usually less than 50 ms. This came from a 6 month analysis of Ookla’s speed test results, which were gathered from all across the U.S.

The takeaway here is that 5G (human) user experience is determined by speed, not much by latency. However, Ludwig admits, “Once 5G use cases such as virtual and augmented reality become mainstream, some aspects might need to be revisited.”

To view Ludwig’s blog in its entirety, see here.

 

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How do I connect to the internet between two buildings?

The Long Range WiFi Bridge System is a product that so many can take advantage of whether it be for personal or professional use. 

As working from home and continuing education from home continue to become a new norm – many have found that this is a solution to assist in making it easier to do successfully without having issues due to the location or poor WiFi signal. This is specifically useful when you are in need of an Ethernet connection, in a location that does not currently support that. 

  • This system gives you the option of reaping the benefits of Ethernet in location 2 like you have in the main location(where you router is setup) without having to go down the path of working with a company to:
    • Dig up a trench
    • Run Cable
    • Having holes cut/drilled out in the walls for new entry points for ethernet ports. 

Product Highlights:

  1. The Long Range P2P Wireless Ethernet Bridge is built to be waterproof and dustproof
  2. It’s dependable even in a harsh environment
  3. Delivers Long and short range point to point links
  4. Supports a wide range of outdoor applications
  5. Links two networks together so that files can be shared on the Internet.

Use Case: 

The main router is setup in office building 1, and you are in need of a better signal in office building 2.

How It Works:

  1. You would need to connect one of the kit’s antennas to your main router in building 1 via an ethernet cable (Power Is Required). 
    1. This is mounted either in a window or outside the home, but pointed in the direction of building 2. 
  2. The other antenna mounts at building 2 and must connect via Ethernet to another Router, WiFi Access Point, or Ethernet Switch – depending on what’s needed to connect at the building. 
  3. This antenna points back to the antenna in building 1.
  4. Here is a video that also demonstrates how this system works! 

The biggest benefit of doing this is not having to run any cabling to the second location in order to create a bridged network.  You may ask “Why not a WiFi Repeater?,” but that type of solution may not work in this case.

Have questions about the Long Range WiFi Bridge System? Contact us today!

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Where Can I Find a Simple Fax Solution?

Looking for a simple and easy way to fax? No fax machine? No problem! You can now send and receive faxes from anywhere with 5Gstore’s e-fax service. Port your existing fax number or we can get you set-up with a brand new one. Fax from anywhere, anytime, on any device. Big bulky fax machines and paper not required!

5Gstore’s fax service will allow you to send faxes from your email or by logging into your 5Gstore fax account by visiting 5Gstore.com. Received faxes can notify up to 10 recipients via email as an attachment or a link that can be viewed or downloaded. Our fax service supports pdf, .docx, .doc, .jpg .jpeg, .xls and .xlsx files. Send one or multiple documents as a single fax.

You can get started with 5Gstore’s e-fax service for a one time set-up fee of 29.99 or just 9.99 for customers who purchased OneTalk with 5Gstore. Monthly fees are as low as 9.99 with 3 different price plans that you can choose from.

  • Low Usage:
    • Monthly fee: $9.99
    • Pages: 150 pages included, additional pages $0.10/ea
    • Notification recipients: 2
    • Senders: 2
  • Medium Usage:
    • Monthly fee: $14.99
    • Pages: 300 pages included, additional pages $0.07/ea
    • Notification recipients: 5
    • Senders: 5
  • High Usage:
    • Monthly fee: $19.99
    • Pages: 500 pages included, additional pages $0.05/ea
    • Notification recipients: 10
    • Senders: 10

To manage your fax service, set-up user notifications, view usage, billing history, as well as send and receive faxes, log into your account at 5Gstore.com. Navigate to “My Account” and then select “fax”. Click “settings” to view or update settings for your fax line. To add a subject and message as a cover sheet when sending faxes, select “include cover sheet”. You can also add or edit recipients or senders. Senders can send faxes from your fax number via email. Recipients are notified when a fax is received. These notifications can be sent via email or sms with a pdf attachment or link that can be viewed or downloaded.

Faxes can be sent by logging into your 5Gstore account or by email. To send faxes from your 5Gstore account, click the “send fax” link. Enter the fax number, select the attachments that need to be faxed, and fill in the subject and cover letter message (if “include cover letter” is selected) Documents supported by our service are pdf, .docx, .doc, .jpg .jpeg, .xls and .xlsx. To send a fax via email you must be added as a sender in the account settings. Faxes can be sent to any U.S. fax number with your email program. Send your email with attachments to faxnumber@faxmy.email (e.g 2223334444@faxmy.email) and the recipient will receive it just like a traditional fax.

Faxes sent to your fax number will be sent to the users set-up in your account as well as stored in your account. They can be viewed or downloaded by logging into your 5Gstore account. Select My Account, click Fax, and then select “messages”.

In the office or on the go, 5Gstore is here to help you stay connected.

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How Fast Can I Get My Order?

Everybody has things to do, and everybody wants to get things done.  Preferably as fast, easy, and cost efficient as possible.  5Gstore is no different, in our mission statement “Helping You Stay Connected”, we too want to help people get things done with as little hassle as possible. 

The 5Gstore team works hard to have what you need, with the people and knowledge you want to get your desired results.  The only question is how to decide the best way to get what we have to you?  When you order from 5Gstore you can choose to order on your own account with a particular shipper or you can choose to use our account with the discounted rate applied.  When you check out on our website, there’s several options available to you but what is the difference between them all?

Whenever anything is shipped by any shipping company, the first thing to understand is that there are no guarantees.  The estimations for delivery are calculated based on factors such as, where is it coming from, and where is it going to.  What is the item, box, weight and when is the pickup of the package are also factors.  Weather, distance, and available hubs along the route of the package also play a part.  

The map below is our FedEx Ground Delivery guide which shows approximately how long a package should take to reach its destination, it clearly shows that the farther from the starting point (the star in Illinois) the longer it will take to reach the destination. 

As mentioned earlier, there are several options available to you on our website at the time of checkout and we can use an example of a 1 lb. package being shipped from the 5Gstore warehouse to New Orleans, Louisiana as a guide to see how it affects costs.  

  • SmartPost– This is the most cost effective way to do shipping but it may take 10-14 business days to arrive and with the SmartPost feature your package may be handed off to USPS to complete the delivery process.                      
    •  Cost to N.O.L.A.  $12.37
  • Ground– This is the most common means of transportation for packages.  The map above is a good guide for how many days it will take.      
    •  Cost to N.O.L.A.  $17.69
  • Express Saver–  This is the FedEx term for 3 day delivery. This is a rarely used means of delivery since it’s hardly financially beneficial.              
    • Cost to N.O.L.A.  $30.03
  • 2 Day– This is a semi-popular method, especially for those who live further away from the starting point.  When compared to Express Saver it’s the obvious choice since it’s slightly more to get the package a day earlier.                 
    • Cost to N.O.L.A.  $30.99

The above options are helpful when you need your product.   But what about when you need your product right NOW!?  There are 3 different overnight delivery options for you to choose from. 

  • Standard Overnight–  This option will get you your package tomorrow, and it could arrive at any time during the day.
    • Cost to N.O.L.A.  $44.01
  • Priority Overnight– This option will make your package a priority and will be delivered before noon.
    • Cost to N.O.L.A   $49.42
  • First Overnight– This option moves your package to the very top of the priority list, and could be there as early as 7:00 a.m. This could be a risky purchase if you have a business that doesn’t open until 9 or nobody at the house is an early riser.  If you absolutely need it, and you know it will be received then this might also be your best option.  
    • Cost to N.O.L.A.  $151.84

Though the information was for FedEx, all shipping companies operate very similarly regardless of which verbiage they use.  We hope that our example from 5Gstore to New Orleans gives you a better understanding of how costs are affected and what options are available to you.  If ever you are placing an order that is very large, or to a remote location within the country please feel free to call us ahead of making the order so that an estimated shipping quote can be created for you.  

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How Do I Activate My Cellular Device?

Today we’re going to go over some details and tips for activating your cellular modem or router. First, a little background information before you get started. Each cellular device – whether that be your cell phone, a mobile hotspot, or a cellular router – has an IMEI number. This is much like a serial number, as it is used to identify cellular devices. 

Each cellular carrier has a certification process they put cellular modems through. This is essentially a test to verify the modem is compatible with their network and capable of providing the necessary performance. Once certified, you can reach out to the carrier with the modem’s IMEI number and they will confirm compatibility and activate an appropriate data plan. For example, check out the links from Verizon, AT&T, and T-Mobile below. These will provide you a list of all certified devices on their network. 

In cases that you might have a cellular modem that supports the proper frequency bands for your cellular carrier, but is “not” certified, it may still be possible to use this with a pre-activated SIM card. However, this may not work if the modem requires a different SIM card. Such as a 5G SIM card for the new 5G modems. Or if the data plan on the current SIM is not compatible with the modem. We mainly run into this where users have a grandfathered or pre-paid data plan. This also means even with a certified device, if the SIM card and data plan is not supported on the modem, you will need to change your data plan. If this might be the case for you, we advise inquiring with the carrier about making a switch first. 

The SIM card the carrier provides should be the correct size for your modem, but this is also something you’ll want to be clear on before you insert it into your modem. Currently, there are three sizes that modems use. Most require the 2FF size, which is also sometimes referred to as a standard or mini SIM. This is the largest of the three. Next is the 3FF, also called “micro.” And the smallest is known as a 4FF, or nano size. These days you’ll generally get a “combi” or “trio” type SIM card, which allows you to pop out the size your device requires.

Modems will differ slightly with regards to how the SIM card is inserted also. Take time to review the modem setup instructions, along with the diagrams shown on the hardware, as this will illustrate the proper orientation. Please double check this information as inserting the SIM card incorrectly may damage the device and/or the SIM card. 

Are you still looking for more tips? Chat with our team online, give us a call, or send us an email. We look forward to helping you get, and stay connected!

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Does the Simplifi Connect II Work on FirstNet?

Simplifi is known for providing 4G/5G fixed wireless plug and play routers. As of today, they are pleased to announce that its Connect II Router is now certified and approved for use on FirstNet® – the only network built with and for America’s first responders. The service runs off the AT&T network and solves many challenges that public safety workers face. 

FirstNet has been evolving with the help of feedback from the public safety community. Part of that evolution is adding easy to use hardware such as the Simplifi Connect II LTE Router. First responders, emergency services, and support teams will now have more access to the critical information they need. 

“Our collaboration with FirstNet could not have come at a better time. Working closely with FirstNet, Simplifi provides a highly scalable, simple-to-install LTE Router and traditional phone Line replacement solution managed remotely through Simplifi Cloud,” said Nick Shevillo, CEO of Simplifi. “Our products provide first responders and emergency teams with easy-to-deploy LTE connectivity and traditional phone line replacement while supporting the transition  to more advanced technologies for mission-critical systems. Simplifi’s Connect II Router, Voicelink Smart Adaptor, and Simplifi Cloud management tools reduce installation and maintenance costs by up to 75% and the overall cost of network ownership by as much as 50%.”

Public safety crews have several choices with FirstNet support, but many can be expensive solutions that are difficult to manage and sometimes even to install. The Simplifi Connect II Router is designed with simplicity in mind – both in management and installation. In fact, they say users should be up and running in under two minutes. 

The Connect II also works with something called Simplifi Voicelink – it establishes a secure connection to the Internet and opens a direct line of communication for analog devices to stay connected. The Connect II Router + Voicelink Smart Adaptor creates a secure line for emergency response teams to communicate seamlessly and a robust network that uses the FirstNet platform for all traffic in and out.

Here are some of the key features of the Connect II + Voicelink Adaptor:

  • Enterprise-Grade Routing Stack
  • VPN IPSEC – Secure access for emergency response teams.
  • Wire Guard
  • IP Pass-Through
  • Port Forwarding
  • Captive Portal
  • Splash Page
  • Radius Server
  • Cellular Voice and Data
  • Wired Line Connection
  • Failover
  • App Experience
  • WiFi 32 Simultaneous Connections
  • Website Blacklist/Whitelist – Block devices and websites from network.
  • Device Access Control – Grant or deny device access to network.
  • Call Security – All calls through Voicelink are secured over VoLTE.
  • Router Management – Manage one or 1000+ routers from one screen.
  • Fast Deployment – Setup Connect + Voicelink in minutes.

In order to be certified on FirstNet, devices are subject to hundreds of tests that cover a number of aspects, from security and durability to network impacts. This helps make sure that they can meet the needs of first responders. FirstNet Ready® devices are listed on the FirstNet device page.

“FirstNet devices and modules go through extensive review, so first responders can be confident that Simplifi’s Connect II Router meets our highest standards for reliability, security and performance,” said Matt Walsh, assistant vice president, product management and development, FirstNet Program at AT&T. “The more tools public safety has access to on their network, the more we can help them achieve their mission.”

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How Can Peplink SpeedFusion Connect VPN Help Me?

As Peplink experts, 5Gstore receives questions everyday about SpeedFusion. What is it? How does it work? How can it help my business? We’ve put this information all in one place to answer some of the most commonly asked questions about this exciting technology. Do you need to know more or want to discuss if a SpeedFusion deployment is right for you? Contact the experts at 5Gstore and we’ll come up with a solution for your business’s unique needs.

What is SpeedFusion?

SpeedFusion is Peplink’s patented technology that powers enterprise grade VPNs. By tapping into the bandwidth of any WAN link – cable, DSL, cellular, etc – SpeedFusion turns your multiple connections into a single bonded connection.

What can SpeedFusion be used for?

SpeedFusion has three technologies designed to address specific problems.

SpeedFusion Hot Failover

In the event of a WAN disconnection, Hot failover will transfer your traffic to another connection while maintaining session persistence. For example, if a WAN connection breaks during a video conference, the video conference can still continue without having to hang up or call again.

5Gstore utilizes SpeedFusion Hot Failover in our day to day operations at our warehouse. Our primary internet connection is a wired Comcast connection, and we use Verizon LTE as our backup connection. We’ve created a SpeedFusion Hot Failover connection and run all of our traffic through that connection. All of our data flows over the wired connection first so we don’t use any unnecessary cellular data, but the instant that the wired connection fails, Hot Failover seamlessly switches all of our traffic to the LTE connection.

A traditional failover or load balancing router would lose all of the network traffic on the internet connection that fails dropping calls with our customers, interfering with our ability to ship products, and preventing us from running our business. Thanks to SpeedFusion Hot Failover, if an internet connection fails, no customer or employee is even aware there was an outage. 5Gstore holds quarterly ‘fire drills’ where we’ll purposely disconnect our primary connection to ensure our systems all function in the event of a real outage.

SpeedFusion WAN Smoothing

WAN Smoothing utilizes intelligent algorithms to fill in connectivity gaps, trading bandwidth for greater connection resiliency. WAN Smoothing minimizes latency and reduces the impact of packet loss. This is useful for times when you need connection reliability and responsiveness more than speed.

WAN Smoothing uses two or more internet connections simultaneously for the purpose of increasing reliability and consistency of a connection. If you can’t afford dropped packets or need minimal latency for applications such as live streaming audio/video, WAN Smoothing makes that possible.

SpeedFusion Bandwidth Bonding

Bandwidth bonding combines data at the packet level, enabling you to combine the speed of more than 18 connections (dependent upon which router model you’re using). This is useful for situations where bandwidth is scarce, such as at a remote site or in a moving vehicle. This technology also enables branch offices to connect to the head office at greater connection speeds.

If you are opening a branch office in a location where internet connectivity is slow or unreliable, Bandwidth Bonding can save the day. By bonding the speeds of multiple DSL lines, offices can experience increased reliability by utilizing multiple connections at once, and aggregate the bandwidth of multiple connections into one faster pipe.

What makes SpeedFusion different from Load Balancing?

Load balancing allows a single router to have multiple active internet connections, however load balancing has its limitations. First, load balancing doesn’t allow a single user to take advantage of the speeds of multiple connections. If you have three 10Mbps DSL lines, all a single user would ever see is 10Mbps. If the internet connection that user is being balanced to drops, that user would lose connectivity completely while the router fails them over to another available connection. VoIP phones would be disconnected, web sessions would sign out, and any downloads in progress would be dropped. Load balancing provides more bandwidth across an entire network, but does NOT combine the speeds of multiple connections or allow for session persistent unbreakable internet connectivity. Only SpeedFusion can provide this!

For some users session persistence is not required and failover between multiple links of a load balancing router is enough. Peplink provides 7 incredibly powerful load balancing algorithms and customizable rules that put you in complete control of network data priorities. Just set your traffic priorities, including VoIP and custom application traffic with a few clicks and let Peplink take care of the load-balancing and optimization details. Peplink load balancing routers support PepVPN instead of SpeedFusion. PepVPN allows a simple VPN connection to other Peplink routers, although without the benefits of SpeedFusion. Branch offices that don’t require SpeedFusion performance can still connect up to a SpeedFusion capable router at the headquarters and still participate in the larger mesh network for remote connectivity.

What is required to create SpeedFusion Connections?

In order to create a SpeedFusion connection you’ll need a minimum of two pieces of Peplink technology with SpeedFusion capabilities. This typically consists of a primary unit, installed at a headquarters or data center location with access to a high speed internet connection, and a second unit that is mobile (in the case of cellular bonding) or installed at a remote or branch office. A SpeedFusion VPN tunnel is created between the two locations, and using the powerful outbound policy settings on the Peplink router, all or specific traffic is routed over the bonded connection.

Let’s use the diagram above to show how SpeedFusion can make VoIP calls unbreakable for a business. The headquarters location has a Balance 710 router installed. Each branch office for the business located across the country gets a Balance router with SpeedFusion capability, spec’d based on the office size and throughput requirements. The remote office routers are easily set up to route all VoIP traffic over the SpeedFusion connection to the main headquarters router. Because each remote office has at least two internet connections, if one connection were to fail, VoIP traffic would seamlessly continue on the second internet connection uninterrupted!

This sounds great, but is SpeedFusion easy to set up?

Yes! SpeedFusion setup takes minutes, compared to the time and effort it takes to configure a typical VPN between multiple sites. Just check out our setup videos here. The Peplink user interface is graphical with easy to understand options. Helpful icons provide more information where it is needed without making deployment a burden.

SpeedFusion deployments are even easier when leveraging InControl 2, Peplink’s cloud based management tool. InControl 2 can automate SpeedFusion deployments for hundreds of sites simultaneously in just a few minutes meaning you don’t have to configure each router individually! InControl 2 is free for the first year with every Peplink router, included with the extended warranty, or a low yearly cost per device.

SpeedFusion and InControl 2 are part of a larger concept called SD-WAN (Software-Defined Wide Area Network), a revolutionary way to approach the simplification of branch office networking and assure optimal application performance by using centrally controlled and managed WAN virtualization. SD-WAN is WAN virtualization, which allows for intelligent, secure, and centrally managed and monitored connectivity. Read more about SD-WAN here.

VPN Feature Comparison

What if I want to take advantage of SpeedFusion but don’t have a second location for a second router?

Simply Bonding

5Gstore has created SimplyBonding for exactly those situations. SimplyBonding uses Speedfusion technology to bond multiple 3G, 4G, DSL, or cable connections into one fast/reliable/unbreakable connection. Utilizing Speedfusion typically requires a Peplink router on both ends of the connection – one at the location where you need the bonded connection, and another at another location with a high-speed internet connection to bond the connections and send the data back to the primary location via VPN. SimplyBonding eliminates the need for this dual-router setup. SimplyBonding requires just ONE router, which will be configured to connect to our hosted service – WE handle the bonding and VPN for you!

SpeedFusion Connect – SpeedFusion Cloud

SpeedFusion Cloud is Peplink’s infrastructure that provides access to a global network of SpeedFusion endpoints and technology without requiring additional hardware. Leverage the global reach of public clouds to ensure that you get the fastest response time and the most reliable connection. Enjoy Bandwidth Bonding, WAN Smoothing, and unbreakable connectivity from any compatible router. There’s no need to invest in core hardware, setting up, or even maintenance. 

FusionHub

Peplink’s FusionHub virtual appliance is much like a virtual router. It is used as an alternative to running SpeedFusion on router hardware. It’s also an alternative to Peplink’s SpeedFusion Cloud service. It’s important to note that unlike a hardware only SpeedFusion connection, a public IP address is not needed. This is because a public IP address can be supplied from the cloud service running the FusionHub appliance. Of the supported cloud services, Amazon Web Services seems to be the most popular, but Peplink supports multiple services.

SpeedFusion Considerations

SpeedFusion Bonding does have limitations that are important to understand before considering a deployment. First, you must have enough bandwidth at the headquarters site, to support the total bandwidth of the remote site(s).

Consider The Speeds On Both Sides of Your SpeedFusion Connection

Example: You have a headquarters location with 50Mbps download, and 10Mbps upload speed. Your remote site has three 10/5 connections. 5 + 5 + 5 = 15 Mbps – 19% = 12.15 Mbps maximum upload speed. The headquarters only has 10 Mbps of upload speed available, so that is your upload capacity for the remote site if you are sending traffic to the internet. You still have the benefits of bonding for reliability, session persistence, and speed, you just can’t use the full capacity of the remote site links due to the bottleneck on the headquarters router connection.

Cellular users should note that bonded cellular connections suffer from “flow control” of TCP traffic at the carrier level, and 5Gstore cannot guarantee that bonding multiple cellular connections will result in faster speeds (however, the other benefits of SpeedFusion bonding remain, such as unbreakable VPN, session persistence, and 100% uptime as long as you have 1 healthy WAN). Cellular users must also consider tower capacity if bonding multiple connections from a single carrier. For the best results, we recommend bonding no more than two of the same carrier’s connections together, favoring bonding multiple networks together instead to ensure the highest availability of bandwidth.

What if I need support or have more questions?

5Gstore provides one year of technical support by phone on every purchase. We also have an extensive online support portal which includes manufacturer user manuals and documentation, along with 5Gstore created tip-sheets that go over specific features and troubleshooting. We have multiple Peplink Certified Engineers on staff who can help you with every step of your SpeedFusion solution from concept to deployment, and assist with any questions you may have before and after the sale. Contact 5Gstore for more information – give us a call, send an email, or reach out on our chat!

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Who Acquired Sierra Wireless?

CAMARILLO, Calif., & VANCOUVER, British Columbia–(BUSINESS WIRE)–Semtech Corporation (Nasdaq: SMTC), a leading global supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms, and Sierra Wireless, Inc. (Nasdaq: SWIR) (TSX: SW), a world-renowned Internet of Things (IoT) solutions provider, yesterday announced a definitive agreement under which Semtech will acquire all outstanding shares of Sierra Wireless for US$31 per share in an all-cash transaction representing a total enterprise value of approximately US$1.2 billion, subject to customary closing conditions. The acquisition will significantly expand Semtech’s addressable market and is expected to approximately double Semtech’s annual revenue and create a strong and diverse portfolio of connectivity solutions for the growing IoT market, making it easier for customers to find innovative end to end solutions for any segment. The deal is also expected to be immediately accretive to Semtech’s non-GAAP EPS before synergies and generate US$40 million of run-rate operational synergies within 12-18 months post-transaction close.

This acquisition brings together two important technologies for the future of IoT – LoRa and cellular – to enable the digitization of the industrial world with a comprehensive chip-to-Cloud platform. Semtech expects the combination of Sierra Wireless’ cellular capabilities across its modules, gateways and managed connectivity together with Semtech’s LoRa-enabled end nodes to create a uniquely differentiated IoT portfolio which will enable a plethora of new IoT use cases to be conceived. In addition, the combination of Sierra Wireless’ Cloud services offerings and Semtech’s LoRa Cloud™ services will bring together a future Cloud services portfolio offering that will include enhanced security, provisioning, device management, and geolocation capabilities for power optimized IoT applications. This new Cloud services capability is expected to add greater than US$100 million of high-margin IoT Cloud services recurring revenues immediately.

“We believe the next era of technology growth is the full digitization of our industrial world – the Internet of Everything. Our vision is to build a simple, horizontal platform with the goal of accelerating this transformation and to bring about a smarter and more sustainable planet,” said Semtech president and chief executive officer, Mohan Maheswaran. “This exciting strategic acquisition of Sierra Wireless is a critical part of bringing this vision to life through the combination of cellular, LoRa and Cloud services. Together, with the world-class Sierra Wireless engineering team, we will be positioned to advance the market with multi-radio solutions that bring new chip-to-Cloud services to support customers and grow our business.”

“Over the last year, Sierra Wireless has taken decisive steps to profitably grow the business, and I am proud that the progress we have made has culminated in this exciting transaction. Together with Semtech, we will be able to extend the reach of IoT solutions by scaling, optimizing and ultimately delivering an even stronger product portfolio and service model to customers,” said Phil Brace, president and chief executive officer of Sierra Wireless. “Sierra Wireless is a high growth business with some of the best, most advanced IoT technology in the industry, and we are pleased to deliver immediate and compelling value to our shareholders through this transaction. Joining Semtech will also allow us to bring cellular and LoRa technology together to create innovative solutions that exceed the expectations of our customers around the world while delivering exciting career opportunities to our talented employees as part of the combined company.”

Sierra Wireless brings highly complementary skills and capabilities to Semtech, including Sierra Wireless’ leading modules, gateways, 5G, and Cloud services. Given Sierra Wireless’ demonstrated expertise in IoT and cellular engineering, software and services, and its extensive knowledge of IoT channels and vertical markets, Semtech expects the combined company will be well positioned to serve high growth segments such as:

  • Supply chain, logistics and asset management
  • Utilities, including water, gas and electric metering
  • Smart cities and building, including air quality monitoring and public safety
  • Smart agriculture and species protection

Transaction Details

Under the terms of the agreement, Sierra Wireless shareholders will receive US$31 per common share. This represents a premium of approximately 25% to the closing price of Sierra Wireless’ common stock on July 29, 2022, the last trading day prior to media speculation regarding a potential transaction, and a premium of approximately 30% to Sierra Wireless’ unaffected 30-day volume weighted average price. Semtech intends to fund the transaction with cash on hand and committed debt financing arranged by J.P. Morgan.

This transaction has been approved by the Semtech and Sierra Wireless Boards of Directors. This transaction is subject to approval by Sierra Wireless shareholders, certain regulatory bodies and the Supreme Court of British Columbia, and other customary closing conditions. This transaction is expected to close in Semtech’s fiscal year 2023. Until close, the parties remain separate independent companies.

Sierra Wireless Preliminary Financial Results

In a separate press release issued yesterday, Sierra Wireless announced preliminary details relating to certain of its financial results for its second quarter of 2022. Sierra Wireless will issue a press release to share its full second quarter financial results after the market closes Aug. 11, 2022. The Sierra Wireless preliminary results press release is available on its website.

In light of the pending transaction, Sierra Wireless is canceling its second quarter financial results conference call previously scheduled for Aug. 11, 2022.

Semtech Conference Call

Semtech hosted a conference call for the financial community yesterday to discuss the acquisition. A replay of the webcast is available on the events calendar on Semtech’s investor website.

Advisers

J.P. Morgan Securities LLC is serving as the exclusive financial adviser to Semtech. O’Melveny & Myers LLP is serving as its U.S. legal counsel and Stikeman Elliott LLP is its Canadian legal counsel.

Qatalyst Partners and BMO Capital Markets are serving as financial advisers to Sierra Wireless. Skadden, Arps, Slate, Meagher & Flom LLP is serving as its U.S. legal counsel and Blake, Cassels & Graydon LLP is its Canadian legal counsel.

By 5G ,

How Can We Improve Cellular 5G at Sea?

Have you ever been out at sea and found yourself with weak or no cellular signal? Or maybe you’ve just avoided cellular altogether and paid for expensive satellite service? Well, with 5G technology, we may see a change. JET Engineering, out of Cedar Rapids Iowa, is working on a way to make 5G service accessible offshore. 

Their System Solutions department has deployed a floating 5G base station off the UK coast of Dorset. The base station is mounted on a buoy they’ve named JET-4 Babel. Its job is to transmit coverage for devices to connect to and extend the distance from the shore that a 5G signal can be accessed. 

The JET team demonstrated the buoy’s connectivity by establishing a 5G connection between it and JET-3 Arial, a buoyant underwater camera, for real-time live streaming. The network is expected to be able to extend for miles offshore while providing high-bandwidth and high-speed delivery.

“This signifies a great technology milestone for JET, having taken the buoy-to-buoy wireless communications from the lab to the ocean,” said James Thomas, CEO of JET Engineering. “But more importantly we have unlocked a whole host of possibilities for users and service providers to save costs, improve efficiencies, and make their everyday work easier.

JET also plans on providing a platform for data collection and live streaming to users. This would be either as raw data or through a user-friendly dashboard. They’re receiving assistance from the Offshore Wind Growth Partnership (OWGP) and the Offshore Renewable Energy Catapult’s Launch Academy. These groups helped with the technology loaded onto Babel as well as overall funding for this project.

Claire Canning, OWGP program manager, said, “We are thrilled to be working with JET and supporting this game-changing project. Not only will this drive a step-change in growth for the company, but 5G connectivity at sea will completely transform offshore wind operations, improving both efficiency and operator safety.”

Additional funding came from DCMS via the 5G RuralDorset project. They had also contributed to the previous deployment of the Arial buoy. Research was previously conducted by 5G RuralDorset. They found that 5G was necessary to provide essential safety, environmental, and efficiency considerations. Especially for those living in isolated areas and in off-shore settings.

“It’s great to see the concept of 5G at sea become a reality and we’re proud to have worked closely with JET to get the buoys to this important milestone,” said Councillor Jill Haynes, cabinet member for Corporate Development and Transformation for Dorset Council. “5G connectivity will play an important role in ensuring safety at sea, as well as presenting unique commercial opportunities for all parties.”

More unique ways of using and deploying 5G networks have been showing up recently. Last month, AT&T introduced a drone that transmits 5G network service, which they called the Flying COW. Like the JET-4 Babel, the Flying COW is helping to bring 5G to the more remote and rural locations. These are also used to provide temporary connections during big events, such as the Super Bowl or natural disasters.

By 5G , ,