View from the Top

Terry G. Jarnigan, Chief Executive Officer Pasternack Enterprises | Originally published at http://www.mpdigest.com/ | December 2014




Q: The “Internet of Things,” that is, everything being connected, will have an impact on the RF and microwave industry. Will it affect your company?

A: The name Internet of Things (IoT) misses the point. It should be the “Wireless of Things” because the vast majority of applications within IoT will communicate this way. While the media has focused on the “sexier” applications within IoT such as wearables and others that rely on a smartphone or other small host device and communicate only a few inches or feet, there are dozens more that in order to perform their intended use must communicate over longer distances. These will require a great number of the passive components in which Pasternack specializes, from coaxial cables, connectors, couplers, power dividers and combiners and other passive components low-noise, as well as small-signal and RF power amplifiers, to name a few. So we see IoT as a terrific emerging market for us.


Q: If some or all of your company’s products are designed for defense applications, what are your feelings about this market sector in 2015?

A: The hand-wringing over the declining defense budget seems to have led to a general feeling among many in the RF and microwave industry (and elsewhere) that the entire defense supply chain – from the bottom up – is in for hard times. There is some justification for this feeling, as the Pentagon budget has not been this lean since 1940, although in recent terms it is only slightly less than just before the troop surge in Iraq in 2007. Projected budget cuts are likely to keep it that way through the end of the decade. This is despite the fact that the U.S. arguably faces, if not all-out war, then certainly more threats in more parts of the world than it has in 70 years if not ever.

Obviously, as the majority of our products, while widely employed in commercial systems, are also a staple of defense systems, we have scrutinized the outlook for defense procurements. What we see is a continuing need for all types of RF and microwave components, subsystems, and systems throughout the Army, Navy, Air Force, Department of Homeland Security, and the various intelligence services. For example, after years of decline the Pentagon has awakened to the need for more capable electronic warfare, radar, and ISR systems. In addition, a “network-centric” force, no matter how it is implemented, will require enormous amounts of RF and microwave hardware. In short, while the coming years may not record-breakers for our industry, they will not be lean years either.


Q: If you had to pick just one commercial application (carrier wireless, Wi-Fi, etc.) that has the most promise in 2015 what would it be?

A: My answer to this question is “all of the above and then some”, for the simple reason that the wireless industry, which accounts for the bulk of commercial applications, will continue to grow and evolve for many years to come. The day of the macro cell may be waning but these base stations are now being complemented in large numbers by the small cells, in-building networks, and distributed antenna systems required to deliver the promise of “wireless everywhere” that consumers have come to take for granted.

This market alone is enormous and in some cases just emerging, as it also is in the public safety sector as FirstNet slogs its way to creating a national broadband plan based on LTE operating in the D-Block spectrum allocated to it by the FCC. This will be years in the making and along the way there will be opportunities for manufacturers of all types of devices, both active and passive.

The aforementioned Internet of Things is also an embryonic market that offers enormous potential for our industry – and for Pasternack. Wi-Fi, which has been transformed into a service akin to carrier wireless, is growing exponentially as cable MSOs and telco companies deploy Wi-Fi hotspots throughout North America. There are already more than a quarter million and thanks to roaming agreements between these companies it is already possible to hop from hotspot to hotspot regardless of who owns it. As these hotspots offer benefits not just to consumers but to wireless carriers for offloading data, there’s no evident downside to this growth.

Other variants of Wi-Fi are in development as well, including IEEE 802.11p for vehicular environments, IEEE 802.11ac for higher throughput at 5 GHz that is currently being offered commercially in smartphones, tablets, and laptops, and IEEE 802.11ad (WiGiG) designed for short-distance device communications at 60 GHz.

Last but by no means the only other lucrative opportunities are industrial applications such as RF heating, medical equipment, and scientific systems. Taken together, all of these applications will drive the RF and microwave industry far beyond just 2015.


Q: Are you watching any emerging application or applications that you think will be major drivers beginning in 2015? If so, please describe.

A: All of the applications I’ve just described are major drivers for our industry next year and those beyond, and mine is not a complete list. Among them however, I believe in the commercial market the “heterogeneous network” (HetNet) concept is highly appealing for the broad range of hardware required as it encompasses wireless networks of all types. In the defense market, radar and especially EW will be key drivers as will terrestrial and airborne communications and positioning, navigation, and timing (PNT).


Q: In your opinion, what changes must the RF and microwave industry make in the coming years to ensure that it most effectively delivers the solutions customers want?

A: There are several of which two I believe are imperative. Although this probably sounds self-serving, the foremost is getting products to customers when they need them, not in the typical timeframe for which this industry is legendary. Shortened design cycles and cost constraints demand it. Next is a greater commitment to digital technology within RF and microwave subsystems. FPGAs, DSPs, and GPUs are the emerging stars within commercial and in particular defense systems, and subsystem and system manufacturers in our industry that do not embrace them do so at their peril.