Nokia, Ericsson disagree on how to apply AI in the network
https://www.fierce-network.com/wireless/nokia-ericsson-disagree-how-apply-ai-network
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Ericssonâs view is not necessarily a strategic policy, but rather a conclusion limited by their own previously chosen technology.
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The best part is that the headline should perhaps be âNokia and NVIDIA disagree with Ericsson on applying AI in the networkâ
Anyway, the network side aside. Nokia and Ericsson have taken different paths, but Ericssonâs CEO hasnât ruled out Nokiaâs model; instead, he stated that they could also move in that direction if it seems more profitable. I believe this divergence could lead to better margins for both, as both likely know what they are doing. Nokia might have a slightly more futuristic vision here.
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The majority of operators share Ericssonâs view, so it is a matter of strategic directionânot a technological lag on Ericssonâs part. Neither party is currently willing to invest in the Nvidia/Nokia vision.
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One somehow thinks that Erkki (Ericsson) is leading in the style of the Nokia phone company, cautiously as a market leader. I would assume that Private 5G/6G could be a big growth area for the N&N collaboration and, through that, put pressure on operators as 6G approaches..
But just like in the â5G is coming, are you readyâ talk, a lot of water still needs to flow under the bridge and AI edge benefits need to be found..
But Mobile Network is âbubblingâ well under the surface, soon itâll go off on the NI side, and then once MN is in shape, then voila 
2030 and âŹ30+ prices 
Happy Canada-beating day to everyone!
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@Atte_Riikola, a question: in the peer group analysis, chart 11 from Danske caught my eye, where the pension fund excess is included in the Net cash graph. Without knowing or taking a stance on whether Danske includes some value and/or probability for the mentioned pension fund excess in its analysis figures, Iâd like to ask @Atte_Riikola if it can be considered a so-called hidden value, and do you have some value and/or probability for that pension fund excess in your analysis?
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I have a bit of the same feeling. Ericsson acts steadily and cautiously, but Nokia has gone American-style and is charging ahead, creating opportunities. This is a clear competitive advantage, especially in private networks, but perhaps a setback with traditional operators. But hopefully, Nokia will also have those more traditional 6G models available when the time comes.
This will turn out well in every way, and my own price target for 2030 is closer to $40.
Happy dump day to you too!
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Nokia sees enterprise networks as a significant focus area and a source of strong growth, while simultaneously holding a smaller market share than Ericsson on the operator side. It is logical that Nokia places more emphasis on competitive advantages for the enterprise customer segment.
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This is going to be a big deal when 6G is launched. IoT was a thing for a while before 5G, but then it was realized that IoT stuff would require at least 6G. Radios will replace switches and cables in production facilities. Itâs not just about closed-loop AI, which will likely be as common in the office as a coffee maker.
Iâve âalreadyâ been invested in Nokia for 5 years, but Iâve never been this hyped about all the growth opportunities before. 3 years ago I was shitting my pants a bit about what Iâd done, 2 years ago I realized that weâre heading in a good direction if the CEOâs words can be trusted, and today itâs sometimes hard not to whip it out in a public place. So Iâm looking forward to the numbers in a few years with interest! Cheers!
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Thanks !! Iâll have to brew some new Nokia Coffees, since the old ones are on the screen
Had to post it on X: https://x.com/Officialruuki/status/2024769103135740280
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This is also essential because, in addition to Nokia trailing in market share, it has also lost market share to Ericsson and Huawei in 3GPP networks in recent years (DellâOro).
On the private side, they had to give up on campus networks; on the enterprise side, they should be able to pull a rabbit out of the hat quickly so that the nascent growth doesnât stall. Non-3GPP solutions prevailing in the industry remain competitive.
Ericssonâs R&D should probably be monitored now. Will they remain in a wait-and-see mode, or is the rhetoric just empty talk and theyâre already starting to shift resources towards Nokiaâs direction? I wouldnât put too much weight on the operatorsâ conservative views. Of course, nothing is certain, even though some people here seem to have actual information.
Interesting. I havenât heard before that Nokia is lagging behind in market share or has lost any of it. Could you provide some sources? Iâm putting a lot of weight on private networks, and this news/analysis I missed could be quite impactful. Iâm not worried about Huawei, because in my view, Nokia can only thrive in countries that are wary of China.
It is a fact that growth in the private segment was very modest in the last report. Indeed, those sources, please.
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Nokia states the following about these pension assets in its reports:
From what Iâve understood of the matter, that surplus canât just be transferred to shareholders just like that. There are likely quite a few legal hurdles across different countries involved. Claude had the following to say on the topic, among other things:
Well, as I understand it, what that surplus can enable is for Nokia to contribute less new capital into these pension arrangements. In that sense, a slightly larger slice of future cash flows would be left for the shareholders. But looking at the big picture, I donât currently see that pension fund as being so material that it should be separately factored into valuations.
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I phrased that poorly. I meant that it is also essential for Nokia to emphasize the enterprise network side, because in addition to Nokia being behind in 3GPP market share, it has also lost market share to Ericsson and Huawei in 3GPP networks in recent years (DellâOro).
Nokia is the market leader on the enterprise side, but the market is sluggish, as you mentioned.
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FYI, a long analysis on Reddit regarding Nokiaâs strategy and Hotardâs early days: https://www.reddit.com/r/Nok/comments/1ra2gjf/nokias_pivot_to_an_ai_transport_backbone_and_a/
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Ericsson does AI-RAN minus Nvidia in push for 5G silicon freedom
https://www.lightreading.com/5g/ericsson-does-ai-ran-minus-nvidia-in-push-for-5g-silicon-freedom
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