Author: Shiv Putcha
Nokia is a company undergoing dramatic changes
Nokia is a company that is undergoing dramatic changes, not only in terms of a rapidly declining external environment but also in terms of pretty stark shifts in its strategy and internal alignment. Under CEO Pekka Lundmark, the company had already initiated a shift away from the end-to-end positioning that was espoused by his predecessor, Rajeev Suri, towards organic business units that were fully integrated and with empowered decision making. Perhaps stung by the loss of high-profile accounts like AT&T and an effective total retreat from North America, Nokia’s recent guidance has not made for pleasant reading and likely has helped accelerate the transition plan that had already been initiated. To be fair, there have been gains from other markets which have helped offset some of the high-profile account losses and market spend declines.
Nokia’s CEO made candid remarks highlighting guidance pointing to a top line decline of 10-15% in mobile networks, primarily due to the sharp declines in spending from India as operators there wind down their spending post the first wave of investment in 5G networks. While external headwinds continue, Nokia believes that the market has likely seen bottom and their expectation is a rebound, if not a surge, in spending as there is plenty of investment left to make in 5G, with Nokia citing research suggesting that only about 30% of 4G LTE sites globally have been upgraded to 5G. Besides operators investing in new 5G networks and brownfield operators upgrading to 5G Advanced, Lundmark also highlighted government support for “secure and trusted networks” as a key driver for Nokia as it is benefitting from swap outs in some markets.
Nokia Mobile Networks strategic and design philosophies are in stark contrast to competitors
We had the opportunity to listen to keynotes from the leadership team at Nokia Mobile Networks (MN), including Tommi Uitto, Ari Kynaslahti, Mark Atkinson and others. There are a number of key takeaways that we noted about the Midsummer launches but also with the overall approach of Nokia MN relative to its key competitors.
Energy efficiency has become a core mantra
Another oft-repeated mantra for Nokia MN throughout the sessions was energy efficiency as a core design principle. This message is hardly unique to Nokia but it was telling to see the holistic way in which crucial requirement for mobile operators is being approached within the company. Beyond claims of % savings for new products, there is an inherent recognition that energy efficiency will come from better hardware and software designs, with a healthy dose of AI sprinkled in for iterative learnings and efficiency gains.
Honorable mentions
We would be remiss not to briefly mention a number of the other initiatives that Nokia is working on. These include a big push on network APIs through their “Network as a Code” platform in partnership with aggregators like Infobip and cloud providers like Google Cloud. Nokia MN is also a member of the recently created AI-RAN Alliance that is pushing for increased usage of AI in the RAN for driving increases spectral efficiency, for allocating idle RAN resources for AI workloads and also using AI to drive increased efficiencies at the network edge.
Future outlook
There is no immediate easing of the external headwinds that are facing the industry. That said, Nokia MN appears to finally be emerging from its transition period with a refreshed portfolio of products that cater to multiple industry segments and deployment scenarios, while also keeping openness and energy efficiency as core design principles. Nokia MN has a lot riding on their bet that operators want increased flexibility and choice for their networks. While Nokia has doubled down on its strategy and recent investments, a lot will ultimately depend on operator strategic choices – double down on purpose-built networks or opt for optimized, “open” solutions that offer elastic “on-demand” capacity.
Author: Shiv Putcha A few weeks after Mobile World Congress 2024, the dust is settling on news flows from and prior to the event. Unsurprisingly, there were several major themes … Continue reading “Planning is Crucial for the Sustainability of the RAN”
Read moreGSMA Intelligence hosted the Satellite and NTN Summit during MWC Shanghai 2024, bringing expert speakers from across the mobile ecosystem to explore: Access the full slides presented by Tim Hatt, … Continue reading “MWC Shanghai – Satellite and NTN Summit”
Read more5G-Advanced: underpinning a monetisation imperative 5G take-up continues to grow. Adoption has now reached around 20% globally but is considerably higher in most of the vanguard countries. China (with 45% … Continue reading “High/low: a model for future 5G-Advanced networks “
Read moreGSMA Intelligence is the definitive source of mobile industry insights, forecasts and research, used around the world. Our insights cover every mobile operator, network and MVNO in every country worldwide – from Afghanistan to Zimbabwe. Our team of analysts and experts use their deep understanding of markets, technologies and regulatory issues to identify and understand mobile trends, and form captivating analysis on the topics shaping the mobile industry.
Start Using GSMA IntelligenceOur Business Development team will work with you to find the most suitable subscription package to suit your needs. Working with our Insights and Research teams, we provide tailored product demos to help you better understand how we can contribute towards your business objectives. Click below to get in touch and schedule your demo now.
Start Using GSMA Intelligence© GSMA Intelligence 2004‐2024