Mobile Services
ZTE woes may boost network rivals Ericsson, Nokia
By Olof Swahnberg and Eric Auchard
STOCKHOLM/LONDON – Investors are warming to beleaguered mobile network makers Ericsson and Nokia as they begin to recover ahead of a once-a-decade uplift from a new business cycle and an unexpected boost from a U.S. ban on exports to low-cost Chinese rival ZTE.
ZTE has snatched market share in Europe and the Americas, growing four times faster in those markets last year than it did its home market and acting as a drag on contract pricing and revenue growth for Ericsson and Nokia.
But now, ZTE has been slapped with a potentially devastating seven-year export ban. It has yet to say how it may respond to U.S. threats to cut off its supply chain.
Ericsson is due to report results on Friday and Nokia next Thursday and the focus is likely to be on next-generation 5G network upgrades expected to start later in 2018 or during 2019, ending a three-to-four year dry spell in network spending.
ZTE, meanwhile, has postponed its own quarterly results announcement, which was due on Thursday.
Ericsson shares are up 3 percent in April while Nokia has gained 6 percent.
Bengt Nordstrom, head of telecoms consultancy Northstream, said it could take several months for ZTE to find alternative suppliers and redesign its products, including optical and mobile gear. “This is a very serious setback for ZTE,” he said.
Whether or not a Commerce Department ban on U.S. firms supplying components to ZTE holds up, Ericsson and Nokia still face a tough year ahead amid weak overall market demand as telecom operators keep a tight lid on network capital spending.
Three big players dominate the global market for mobile network gear: Huawei, of China, is the biggest, followed closely by Ericsson and Nokia. Complicating the picture is that Huawei and Nokia have more revenue from serving other telecom segments.
The three face competition from ZTE and Korean electronics giant Samsung Electronics, a relative newcomer to the network gear market, and a growing number of more focused software and services challengers.
MODEST REBOUND
Quarterly financial reports for the European names are likely to deliver only muted signs of recovery, even if prospects seem to be brightening further out.
“No one on this planet is ready to break the bank for 5G, even less so with a total lack of 5G business cases,” IHS Markit mobile equipment analyst Stephane Teral told Reuters. Even when 5G hits its stride sometime next decade, he warns that capital spending may never return to 4G peak levels of 2015.
Revenue for Europe’s two big network gear suppliers remains under pressure in 2018, even if they are making progress towards seeing growth stabilise in 2019, analysts at UBS said, adding this is “more so for Nokia than Ericsson, where there remains much work to be done to rationalise contracts”.
Sweden’s Ericsson has made sweeping cost cuts, changed most of its management and is focusing on profitability over growth.
Ericsson has spied signs of recovery in a few key markets but cautions that it has more work to do in order to hit profit improvement targets it has pledged to deliver by 2020. A Reuters poll shows that analysts, on average, expect sales to fall 9 percent in the first quarter, with its main networks business declining 11 percent.
Nokia has said it expects its results to bottom this year, and has forecast a recovery in profits by 2020, encouraging investors spooked last year by the general decline in global network spending and acquisition integration missteps.
Most analysts see Nokia recovering faster than Ericsson, which, in a nutshell, is why Nokia shares are up 22 percent so far this year, while Ericsson is up just 1 percent, after the latest in a string of downbeat quarterly reports in January.
Northern Trust analyst Gary Paulin considers Nokia an especially safe bet in a volatile tech market, classifying it as a “fallen angel” – a cheap stock that has suffered a round of setbacks but is on the mend, ready to demonstrate its underlying earnings power once its short-term issues resolve.
By contrast, Credit Suisse says stock market expectations are still too high for Ericsson, which it says will underperform the market due to execution risks from its ongoing restructuring and slower than expected benefits from 5G adoption.
Activist investor Cevian Capital said it is betting on Ericsson to improve profits by increasing efficiency and simplifying how it operates, rather than counting on any 5G boost later this decade.
“When 5G comes it could lift growth and profitability further,” said Christer Gardell, managing partner at Cevian Capital which owned 8.5 percent of Ericsson outstanding shares as of February.
Source: Reuters
NEW DELHI: Bharti Airtel, India’s telecommunications services provider, today announced the launch of its ultra-fast 5G services in 125 cities. Airtel 5G Plus service is now available to customers in over 265 cities in the country.
Airtel 5G Plus has three compelling advantages for customers. First, it runs on a technology that has the widest acceptance in the world with the most developed ecosystem. This ensures that all 5G smartphones in India seamlessly work on the Airtel network. Second, the company promises to deliver the best experience – between 20 to 30 times higher speeds than today coupled with brilliant voice experience and super-fast call connect. Finally, Airtel 5G Plus network will also be kinder to the environment with its special power reduction solution. Powered by the reliable Airtel network infrastructure, Airtel 5G Plus will provide superfast access to High-Definition video streaming, gaming, multiple chatting, instant uploading of photos et all.
Commenting on the launch, Randeep Sekhon, CTO, Bharti Airtel said, “5G has revolutionized the world of internet, ushering new era of connectivity and communications that will prove to be a game-changer for the country. At Airtel, we remain committed to delivering the highest quality of network and service to our customers as we roll-out 125 more cities today. Airtel was the first in the country to offer 5G services in October 2022, and today’s mega launch is our promise to connect every Airtel customer in the country with ultra-fast Airtel 5G Plus. Our 5G rollout is on track to cover all towns and key rural areas by March 2024.”
Airtel 5G Plus service availability will continue to rapidly expand – including service in all towns and villages in the country soon – as the company is working towards offering nationwide coverage. Airtel is now offering its 5G services in every major city from the upper northern city of Jammu to the southern tip of Kanyakumari.
In the last one year, Airtel has demonstrated the power of 5G with a host of powerful use cases that will change the way customers lead their lives and do business. From India’s first live 5G network in Hyderabad to India’s first private 5G network at the BOSCH facility in Bengaluru to partnering with Mahindra & Mahindra to make its Chakan manufacturing facility, India’s first 5G enabled auto manufacturing unit, Airtel has been at the forefront of 5G innovation.
NEW DELHI: Apple Inc has rolled out a beta programme to enable 5G on Apple devices as the upgrade lets users try out pre-release software.
This software upgrade enables 5G access on Apple devices, as and when service providers Jio, Airtel and Vodafone enable 5G network access, sources said.
Apple Users have to enrol for the Beta Programme on the website, install a profile and download the software.
Jio users using iPhone 12 and above, in cities where JioTrue5G has been rolled out, will be invited to the Jio Welcome Offer. Jio Welcome Offer provides unlimited 5G data at up to 1 Gbps speed to users at no additional cost. However, there is a condition that prepaid users must be on active Rs 239 and above plan. All Postpaid users are eligible for this trial.
Airtel is not providing any special 5G offer like Jio to their users. In the cities/areas in which the Airtel 5G network has been launched, users can trial 5G services as a part of their existing plan, once they have updated the latest Apple Beta software.
While an email sent to Apple did not solicit an immediate response, the firm had last month stated: “We are working with our carrier partners in India to bring the best 5G experience to iPhone users as soon as network validation and testing for quality and performance is completed. 5G will be enabled via a software update and will start rolling out to iPhone users in December”.
Airtel and Jio customers on iPhone 14, iPhone 13, iPhone 12 and iPhone SE (3rd generation) models can experience 5G as part of Apple’s iOS 16 Beta Software Program. The Apple Beta Software Program is open to anyone with a valid Apple ID who accepts the Apple Beta Software Program Agreement during the sign-up process.
If a user has an iCloud account, that is an Apple ID, it is recommended they use that. If they do not have an iCloud account or any other Apple ID, they can create one.
Customers who want to try the beta software should back up their iPhones before installing the beta software. It is recommended to install the beta software only on non-production devices that are not business-critical. Users can also provide feedback to Apple on quality and usability, which helps Apple identify issues, fix them, and make Apple software even better.
The iOS beta comes with the built-in Feedback Assistant app, which can be opened from the Home screen on the iPhone or iPad or from the Dock on the Mac.
Source: Press Trust of India
5g
Nokia wins multi-year deal with Reliance Jio India to build one of the largest 5G networks in the world
NEW DELHI: Nokia has announced that it has been selected as a major supplier by Reliance Jio to supply 5G Radio Access Network (RAN) equipment from its comprehensive AirScale portfolio countrywide in a multi-year deal. Reliance Jio is India’s number one mobile operator and has one of the largest RAN footprints in the world.
Under the contract, Nokia will supply equipment from its AirScale portfolio, including base stations, high-capacity 5G Massive MIMO antennas, and Remote Radio Heads (RRH) to support different spectrum bands, and self-organizing network software. Reliance Jio plans to deploy a 5G standalone network which will interwork with its 4G network. The network will enable Reliance Jio to deliver advanced 5G services such as massive machine-to-machine communications, network slicing, and ultra-low-latency.
Akash Ambani, Chairman Reliance Jio, commented: “We are pleased to be working with Nokia for our 5G SA deployment in India. Jio is committed to continuously investing in the latest network technologies to enhance the experience of all of its customers. We are confident that our partnership with Nokia will deliver one of the most advanced 5G networks globally.”
Pekka Lundmark, President and CEO at Nokia stated: “This is a significant win for Nokia in an important market and a new customer with one of the largest RAN footprints in the world. This ambitious project will introduce millions of people across India to premium 5G services, enabled by our industry-leading AirScale portfolio. We are proud that Reliance Jio has placed its trust in our technology and we look forward to a long and productive partnership with them.”
Nokia has a long-standing presence in India. This new deal will mean that Nokia is now supplying India’s three largest mobile operators.
