The following is the [XGNews]: Nokia: embracing open ran technology is our key strategic approach recommended by xgapn.com.
Beijing time, March 22 (ACE) according to foreign media reports, Nokia’s leadership outlined the company’s future development plan at the “2021 capital market day” held last week. Tommi uitto, President of its mobile networks business, pointed out that Nokia will embrace open ran technology as its key strategic approach.
He said that of the 27 major operators in the o-ran alliance, 23 are ran customers of Nokia. “So it’s a very strategic topic for us.” Nokia is an early supporter and contributor of the o-ran alliance. Tommi uitto pointed out that, unlike other competitors, Nokia believes that having SOC and platform compatible with o-ran and VLAN will have more opportunities than avoiding the technology.
“We believe that by becoming a leader in the field of o-ran and VLAN, we will take the lead in supporting and defining the technology before some competitors do anything. In this way, we will win more share and profits than we will only face the loss of market share through the open base station interface.” Tommi uitto said.
He added that Nokia is also ready to face competition from new entrants and “can capture market share from companies that refuse or hesitate to adopt o-ran or VLAN technology.”.
Judging from the current market development, Ericsson is relatively slow in promoting open ran, but the company has planned to provide cloud based ran products. So far, Huawei has adopted a “no cold” attitude towards open ran technology. Samsung has used VLAN as a competitive advantage in some markets, and the promotion in this respect can be described as positive.
Nevertheless, Tommi uitto believes that the open ran technology is not yet fully mature, and there are technical and operational challenges to be solved, but he is confident to find solutions through engineering capabilities.
“It’s better to be involved in solving these challenges than to wait and see,” he said
He pointed out that in addition to open ran, Nokia is also promoting the development of VLAN, including cooperating with cloud giants to run its radio software on the public cloud. Just recently, Nokia announced its latest partnership with AWS, Microsoft and Google. According to Tommi uitto, this is also related to the mobile network strategy in the enterprise sector, which is Nokia’s current and future focus.
Software is another important focus, Tommi uitto said. The value will shift from baseband hardware to software. In VLAN, Nokia “may not even sell any baseband hardware, and our mission will become pure software,” he said.
During the capital market day, Tommi uitto admitted that Nokia had a difficult start in the 5g field and was less competitive than expected. Last year, Nokia’s share of mobile network business in North America declined due to its failure to convert its original 4G market share in Verizon to 5g. At the same time, Nokia also failed in China’s 5g market last year.
Tommi Uitto said that the success rate of the supplier’s conversion of the original 4G market share to 5G was about 90%, except that of Chinese mainland, and the company will focus more on 5G research and development in the future. Since 2019, Nokia has acquired 22 new ran customers from telecom operators and increased its ran share in 20 customer networks.
In the U.S. market, Nokia has just signed a new five-year network cooperation agreement with at & T. Nokia will help at & T deploy the C-band 5g network.
Nokia defines 2021 as the “year of restart”. In the field of mobile network business, the company expects its operating profit margin to be around – 1% – 2% this year, to return to 5% – 8% by 2023, and to increase to more than 10% in the long run.
The transformation strategy of Nokia’s mobile network business includes continuously transforming 4G customers into 5g customers, winning new telecom operators’ customers, taking the lead in the field of enterprise and private wireless network, and technological improvement on 5g product platform.
The plan also involves shaping the market through cloud capabilities and open ran. “We will make o-ran commercially available to gain market share and profits.” Tommi uitto said.
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