Equipment manufacturers: Nokia refocuses on business, Ericsson gets rid of fat

A new look for a new strategy. Nokia took advantage of the Mobile World Congress in Barcelona to change its logo, the most recent of which dates back to 2011. More advanced, it is intended to be “an emblem of a vibrant, dynamic and modern Nokia”, which intends to unleash the “multiplier potential of the network”. . Founded in 1865, the Finnish hardware manufacturer is embarking on a new transformation that has spanned several lifetimes.

The world’s number one mobile phone manufacturer in the 2000s, it will miss the turning point for smartphones initiated by Apple’s iPhone while remaining in the “low-cost” niche. The manufacturer will eventually sell its mobile terminal division to Microsoft in 2013. In subsequent years, in particular, with the acquisition of the French Alcatel Lucent (2016), there will be a long reorientation towards the operator and business market.

The reorientation is underpinned by a strategic plan for 2023, which sees Nokia as “a leader in technology innovation from B to B”. Based on six pillars, it mainly seeks to increase its market share with telecom operators — its historical business — while developing business segment share, in particular through private 5G offerings. The Group also intends to make its commitment to CSR in terms of sustainability and affordability a competitive advantage.

Private Networks Drive Growth

Nokia’s recent announcements are aimed at reorienting this business to business. or the public sector.

The hardware manufacturer also sells its solutions directly. French Société du Grand Paris has chosen its technology to connect 5G to four lines of the future Île-de-France metro. Alcatel Submarine Networks (ASN), a subsidiary of Nokia France, used the Nokia Digital Automation Cloud connectivity platform to set up a private 5G network at its Calais facility.

The development of the business market should also serve as a driver of growth, as telecom operators reduce their investment in the current economic environment, especially in the United States and Europe.

Like its rivals Ericsson and Huawei, Nokia also needs to focus on cloud and open network architectures with Open RAN, reducing operators’ dependency on their vendors. Nokia has just launched anyRAN, allowing carriers to migrate their radio access networks (RANs) to the cloud or on-premises infrastructure.

Ericsson ubiquitous at MWC

The second European equipment manufacturer, Ericsson, has decided to lay off 8,500 employees worldwide, or 8% of its workforce. At this stage, according to Les Echos, it is not known if more than 1,000 French employees, including the Massy research center in the Paris region, are concerned about this.

In January, the Swedish group released worse-than-expected financial results for 2022, with net income down 17% to reach 1.7 billion euros. And in 2023, its CEO Berje Ekholm expects to face “headwinds”. This does not prevent Ericsson from shooting to the fullest at the MWC in Barcelona, ​​multiplying announcements.

The hardware manufacturer has unveiled a new line of hardware and software to facilitate indoor 5G deployment. While about 80% of mobile data is generated indoors, currently only 10 to 15% of the indoor surface of buildings is covered by 5G.

In addition, Ericsson, together with Telefónica and Qualcomm, announced the launch of the first commercial 5G millimeter wave (mmWave) mobile network in Spain. The use of so-called millimeter waves in the high frequencies of the spectrum (range 26 GHz) allows you to achieve high speeds and high capacity, but on a limited perimeter. Ideal, for example, for lighting an industrial site or a football stadium.

Finally, again with Telefónica and two other operators, Orange and Vodafone, Ericsson showed off a platform that is part of the GSMA Open Gateway initiative. This involves providing developers with common programming interfaces (APIs) that allow them to integrate new services and applications into their networks. A new way for operators to monetize their infrastructure.

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