News 

The rumours come amid financial difficulty in the sector 

Nokia has officially denied rumors that it plans to sell its mobile networks division to Samsung.  

Speculation about a potential sale emerged after a Bloomberg report yesterday suggested that Nokia was considering selling or spinning off its mobile networks business, which could be valued at around $10 billion, with Samsung mentioned as a potential buyer. 

Citing people familiar with the matter, the article explained that the investment interest has come “amid increasing pressure to find new growth in the troubled telecom equipment sector.” 

Nokia swiftly rejected these claims, stating in a regulatory filing that it “is issuing this stock exchange release in response to the recent trading activity of its stock due to a market rumour. Nokia has nothing to announce in relation to the speculations published in an article today, and no related insider project exists.” 

The company emphasised its commitment to its mobile networks division, describing it as a “highly strategic asset critical to both Nokia and its customers”.  

This division remains crucial for Nokia despite recent financial challenges, including a 25% decline in sales and a 32% drop in operating profit in Q2 2024. 

In December last year, Nokia suffered a significant blow after AT&T chose Ericsson to supply the Open RAN equipment that will carry 70% of its wireless traffic by the end of 2026.  The $14 billion deal will result in Nokia equipment in AT&T’s network being replaced with Ericsson tech in certain areas.  

Nokia CEO Pekka Lundmark called the news “disappointing” in a statement. 

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Press Release

Ericsson and Telstra today announced a groundbreaking, world-first achievement in mobile connectivity with the deployment of Ericsson’s 4th generation of Radio Access Network (RAN) purpose-built compute platform, paving the way  for a consistent 5G Advanced platform for Australia.

With live deployment on August 14, 2024, this technology marks a new era in mobile data and connectivity, setting a new benchmark for speed, reliability, and efficiency.

Telstra deployed Ericsson’s RAN Processor 6672 in a baseband pooling configuration, also called a Centralised RAN (C-RAN) configuration, delivering greater than three times capacity compared to the previous generation. The latest RAN processors are engineered to deliver exceptional data speeds with higher efficiency and reliability. These RAN Compute units handle all the digital signal processing tasks of the RAN including the modulation, demodulation, encoding and decoding and scheduling of a users’ LTE and NR traffic. A more advanced RAN Compute platform allows more data to be processed simultaneously, a better user experience optimised with advanced AI capability all while consuming less energy.

Telstra is the first telco globally to test, validate, and operate commercial traffic on this RAN Compute platform within their C-RAN hubs that service multiple radio sites. In a C-RAN configuration, the new RAN processors offer up to 60 percent lower energy consumption compared to a distributed deployment. This architecture also enables more flexible operations, remove single points of failure and efficient scaling of compute with the use of Ericsson’s packet fronthaul technology.

This deployment is a crucial step toward future-proofing the network and lays the groundwork for forthcoming 5G Advanced and associated technologies. With the latest RAN Compute technology Telstra’s network is set to evolve for the future, offering consumers new and improved features as soon as they are available. The new platform supports advanced automation and AI/ML capabilities, enabling a programmable network that offers enhanced flexibility and responsiveness. Compared to previous generations, the new RAN processors can have up to 20 times more pre-loaded AI models with higher inference capacity enabling superior user experience through AI. This capability will benefit various industries and applications through improved services and innovative network features.

Emilio Romeo, Head of Ericsson, Australia, and New Zealand, says, “The deployment of our latest Generation RAN compute platform with Telstra represents a significant global milestone in mobile technology. This breakthrough not only enhances current services but also prepares the network for future innovations providing a more reliable, sustainable experience.

Telstra’s Executive for Wireless Network Engineering, Sri Amirthalingam added, “We aspire to give our customers a world leading mobile experience and this technology will unlock new capabilities and support increased capacity in the network. With Ericsson’s support, it will help us meet our customers’ data needs more efficiently as they rely on their mobile for day-to day tasks and is an important step in laying the foundations for 6G.”

News 

China’s objective is to establish a comprehensive computing power infrastructure system by the end of 2025 in the face of US restrictions 

China has invested more than 43.5 billion yuan ($6.1 billion) in data centre investment over the past two years, according to an official statement on Thursday reported by Chinese state publication Xinhua. 

The funds have paid for the construction eight computing hubs as part of China’s “East Data, West Computing” initiative, launched in 2022 by Chinese National Development and Reform Commission (NDRC). 

The concept involves storing data in the more economically developed eastern regions of China, where digital and industrial activity is concentrated, and processing it in the western regions, which have plenty of land and energy but lower data demand.   

The $6,1 billion investment includes the deployment of three server hubs on China’s populous east coast and five hubs in China’s central/western corridor.  

Speaking at a big data expo in Guiyang, in southwest China’s Guizhou Province, Liu Liehong, the head of the National Data Administration, reported that total investments linked to the hubs deployment had surpassed 200 billion yuan ($28.2 billion). He also mentioned that the number of data center racks now exceeds 1.95 million. 

This project is a critical element of China’s digital infrastructure strategy, aiming to boost the capacity of inland areas to store and manage data. China also has plans to create 10 national data center clusters as part of this broader effort.  

The push comes as the country has faced tight sanctions from the US, which have included exports of some advanced computing products. 

As computing power is emerging as a vital productive force in the digital economy, Liu explained that China will support cities in exploring new approaches over the next few years to determine the most effective solutions for data infrastructure development countrywide. 

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Nokia shot down speculation from a Bloomberg report claiming that it is prepping its mobile unit for a US$10 billion sale for suitors including rival Samsung.

In a statement, the Finnish vendor said the it had “nothing to announce” in regards to the speculations and that “no related insider project exists”.

Nokia added that it is “committed to the success of its Mobile Networks business, a highly strategic asset for both Nokia and its customers.”

It claimed the unit had “made significant progress” in correcting its cost-bases, and winning new deals and customers.

“Nokia is focused on ensuring that Mobile Networks is positioned to serve its customers building the best performing networks, investing in its portfolio and creating value for Nokia’s shareholders,” Nokia said in its statement.

Mobile Networks contributes a significant portion to Nokia’s business. In Q2 2024, Mobile Networks contributed €1.97 billion in revenue a year-on-year plunge of 25%. Gross profit for the division dipped 3% from €877 million in 2023 to €851 million this year.

Nokia’s overall net revenues was €4.46 billion in the quarter an 18% year-on-year drop off. Nokia added in 2023 its financial results were spurred by spending from Indian operators that were ramping up 5G plans.

In the original Bloomberg report, sources speaking to publication claimed that Nokia had been speaking to advisors for options for its mobile networks which had for years struggled against rivals Ericsson and Huawei. Sources said Nokia is considering a partial sale, a tie-up with rivals or spinning it off.

The unit is valued roughly at $10 billion said the sources. Nokia’s total market value is around US$24.7 billion, after the news story broke and raised shares by 5.1% to €3.98, reported Bloomberg.  

Nokia CEO Pekka Lundmark said in the vendor’s Q2 earnings statement that “In Mobile Networks the market dynamic remains challenging as operators continue to be cautious”. In August, Nokia announced a slew of deals in Argentina, Brazil, Eastern Europe, Ghana and Malaysia.  

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The RAN (Radio Access Network) automation market traces its origins to the beginning of the LTE era when SON (Self-Organizing Network) technology was introduced to reduce cellular network complexity through self-configuration, self-optimization and self-healing. SON’s shortcomings, together with the cellular industry’s shift towards open interfaces, common information models, virtualization and software-driven networking, are driving a transition to Open RAN automation with standards-based components – specifically the Near-RT (Real-Time) and Non-RT RICs (RAN Intelligent Controllers), SMO (Service Management & Orchestration) framework, xApps (Extended Applications) and rApps (RAN Applications) – that enable greater levels of RAN programmability and automation.

While the benefits of SON-based RAN automation in live networks are well-known, expectations are even higher with the RIC, SMO and x/rApps approach. For example, Japanese brownfield operator NTT DoCoMo expects to lower its TCO by up to 30% and decrease power consumption at base stations by as much as 50% using Open RAN automation. It is worth highlighting that domestic rival Rakuten Mobile has already achieved approximately 17% energy savings per cell in its live network using RIC-hosted RAN automation applications. Following successful lab trials, the greenfield operator aims to increase savings to 25% with more sophisticated AI/ML models.

Although Open RAN automation efforts seemingly lost momentum beyond the field trial phase for the past couple of years, several commercial engagements have emerged since then, with much of the initial focus on the SMO, Non-RT RIC and rApps for automated management and optimization across Open RAN, purpose-built and hybrid RAN environments. Within the framework of its five-year $14 Billion Open RAN infrastructure contract with Ericsson, AT&T is adopting the Swedish telecommunications giant’s SMO and Non-RT RIC solution to replace two legacy C-SON systems. In neighboring Canada, Telus has also initiated the implementation of an SMO and RIC platform along with its multi-vendor Open RAN deployment to transform up to 50% of its RAN footprint and swap out Huawei equipment from its 4G/5G network.

Similar efforts are also underway in other regions. For example, in Europe, Swisscom is deploying an SMO and Non-RT RIC platform to provide multi-technology network management and automation capabilities as part of a wider effort to future-proof its brownfield mobile network, while Deutsche Telekom is progressing with plans to develop its own vendor-independent SMO framework. Open RAN automation is also expected to be introduced as part of Vodafone Group’s global tender for refreshing 170,000 cell sites.

SNS Telecom & IT’s “RAN Automation: 2024 – 2030” report predicts that global spending on RIC, SMO and x/rApps will grow at a CAGR of more than 125% between 2024 and 2027 alongside the second wave of Open RAN infrastructure rollouts by brownfield operators. The Open RAN automation market will eventually account for nearly $700 Million in annual investments by the end of 2027 as standardization gaps and technical challenges in terms of the SMO-to-Non-RT RIC interface, application portability across RIC platforms and conflict mitigation between x/rApps are ironed out. The wider RAN automation software and services market – which includes Open RAN automation, RAN vendor SON solutions, third party C-SON platforms, baseband-integrated intelligent RAN applications, RAN planning and optimization software, and test/measurement solutions – is expected to grow at a CAGR of approximately 8% during the same period. For more information, please visit: https://www.snstelecom.com/son

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