Nokia Reports Q2 and Half-Year 2024 Financial Results

Nokia  announced its financial results for Q2 and the first half of 2024, maintaining its full-year outlook despite challenging market conditions. The company reported an 18% year-on-year decline in net sales, primarily due to a strong prior year quarter in India. However, order intake trends improved, especially in Network Infrastructure, which is expected to drive sales growth in the second half of the year.

The company’s comparable gross margin in Q2 increased by 450 basis points to 44.7%, benefiting from a resolution of a significant contract negotiation within Mobile Networks. Despite this, the comparable operating margin decreased to 9.5%, mainly due to lower net sales coverage of operating expenses. Nokia’s Q2 free cash flow stood at EUR 0.4 billion, with a net cash balance of EUR 5.5 billion. The company also reported a non-cash impairment charge of EUR 514 million related to its Submarine Networks, treated as a discontinued operation.

CEO Pekka Lundmark highlighted the improved order intake momentum and significant strategic transactions in Network Infrastructure, including the sale of the Submarine Networks business and the planned acquisition of Infinera. These moves aim to strengthen Nokia’s focus on Fixed Networks, IP Networks, and Optical Networks, positioning the company for mid-single digit net sales growth and improved profitability over time.

Key Financial Metrics:

• Net Sales: EUR 4,466 million (Q2’24), down 18% year-on-year

• Gross Margin: 44.7% (comparable), up 450 basis points

• Operating Profit: EUR 423 million (comparable), down 32% year-on-year

• Operating Margin: 9.5% (comparable), down 190 basis points

• Free Cash Flow: EUR 0.4 billion

• Net Cash Balance: EUR 5.5 billion

• EPS (Diluted): EUR 0.06 (comparable), down 14%

• Research & Development Expenses: EUR 1,064 million, up 5%

Business Group Performance:

• Network Infrastructure: Net sales EUR 1,522 million, down 11%

• Mobile Networks: Net sales EUR 1,970 million, down 25%

• Cloud and Network Services: Net sales EUR 615 million, down 17%

• Nokia Technologies: Net sales EUR 356 million, up 7%

Outlook for Full Year 2024:

• Comparable Operating Profit: EUR 2.3 billion to EUR 2.9 billion

• Free Cash Flow Conversion: 30% to 60%

Nokia continues to make significant progress on its cost savings program, aiming to achieve EUR 800 million to EUR 1.2 billion in gross cost savings by 2026. The company also plans to accelerate its EUR 600 million share buyback program, with the intention of completing it by the end of this year.

https://www.nokia.com/about-us/news/releases/2024/07/18/nokia-corporation-report-for-q2-and-half-year-2024/

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5G Americas Discusses Dynamic Spectrum Sharing and Future Wireless Strategies

5G Americas, a leading voice for 5G and LTE in the Americas, has published its latest briefing paper titled “Spectrum Sharing: Challenges and Opportunities.” This comprehensive document delves into the various spectrum sharing models, exploring their technical, regulatory, and economic complexities, as well as the potential benefits they offer to the wireless industry.

The paper discusses standardized same and multi-technology spectrum sharing techniques, including evolved spectrum access systems and Dynamic Spectrum Sharing (DSS) technology. As demand for wireless services surges, the briefing paper highlights industry specifications and regulatory perceptions related to DSS, identifying the challenges and opportunities within spectrum sharing. Notably, it emphasizes the 3.1-3.45 GHz band for its potential in commercial services and the advancements required in sensing technologies for effective spectrum management.

Key Sections of the Briefing Paper:

• Spectrum Management Models: Detailed examination of licensed, unlicensed, and shared spectrum mechanisms.
• Dynamic Spectrum Sharing (DSS): Definitions, techniques, and interpretations by industry bodies like 3GPP and 5G Americas.
• Commercial Experiences: Focus on the Citizens Broadband Radio Service (CBRS) and Automated Frequency Coordination (AFC) in the 6 GHz band in the United States.
• 3.1-3.45 GHz Band: Exploration of potential spectrum sharing approaches and their implications.
• Challenges and Opportunities: Analysis of the technical, regulatory, and economic complexities associated with spectrum sharing.

"The ability to share spectrum efficiently is not just a technical challenge but a strategic opportunity. We must develop policies that incentivize cooperation and ensure fair access to this critical resource," says work group co-leader Karri Kuoppamaki, SVP, Advanced and Emerging Technologies, T-Mobile US, Inc.

"Exclusive spectrum use is vital for societal, economic, and national security benefits, but when dedicated spectrum for commercial services isn't possible, spectrum sharing offers a possible solution," stated Brian Daly, AVP Wireless Technology Strategy & Standards, AT&T. "Spectrum sharing, using advanced radar sensing methods, could provide part of the solution to meet the additional spectrum needs of wireless services, if preferred commercially licensed spectrum is not available."

For a detailed exploration of these topics, download the full briefing paper from 5G Americas.

https://www.5gamericas.org/spectrum-sharing-challenges-opportunities-briefing-paper/

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Silicon Valley Bets Big on Campus Network-as-a-Service

The enterprise networking landscape is undergoing a significant transformation with the emergence of campus network-as-a-service (NaaS). According to the newly released 2024 Campus NaaS Research Brief by AvidThink, Silicon Valley is betting big on this new segment, anticipating substantial growth by 2030.

Campus NaaS offers enterprises a simplified, subscription-based model for managing their local area networks, including both wired and wireless infrastructure. This model aligns with the broader trend of "as-a-service" offerings that have already revolutionized software, computing, and storage.

Several factors are driving the rapid growth of campus NaaS:

1. Enterprises are seeking to reduce complexity in network management and focus on core business activities.

2. The shift towards OpEx models and predictable spending is making NaaS an attractive option for CFOs.

3. Advancements in cloud management, AI/ML, and automation are enabling more efficient network operations.

4. The ongoing convergence of networking and security is creating opportunities for comprehensive NaaS solutions.

 

While established networking vendors like Cisco, HPE Aruba, and Juniper are adapting their offerings to the NaaS model, it's the startups that are truly driving innovation in this space. Companies like Nile, Meter, Join Digital, Ramen Networks, and Shasta Cloud are challenging incumbents with their "pure-play" NaaS offerings.

These startups are attracting significant attention and funding from Silicon Valley investors. For instance:

- Nile, founded by ex-Cisco executives, has raised $300 million and boasts John Chambers as a board member and investor.

- Meter has secured $85 million in funding from prominent investors including Sequoia Capital, Stripe founders, and Meraki co-founders.

Silicon Valley's enthusiasm for campus NaaS is reflected in the ambitious growth projections for the market. According to the research brief, analysts at Dell'Oro project the value of Campus NaaS and Public Cloud-Managed LAN to reach $12 billion by 2028, with NaaS driving a substantial portion of that growth.

Key findings from the research brief include:

• The total worldwide market value for enterprise wireless LAN and campus switching was estimated at $35 billion in 2023.

• AI-powered service automation and orchestration are expected to play a crucial role in reducing operational costs and improving user experience.

• Integration of advanced security features, including zero-trust architectures, is becoming a key differentiator for NaaS offerings.

• The rollout of Wi-Fi 7 is anticipated to drive an upgrade cycle for NaaS vendors and their customers.

As the campus NaaS market continues to evolve, it presents both opportunities and challenges for enterprises. While the promise of simplified network management and reduced costs is appealing, concerns about vendor lock-in, security, and integration with existing systems remain.

For a comprehensive analysis of the campus NaaS landscape, including detailed profiles of key players and recommendations for enterprise IT teams, readers are encouraged to download the full research brief from AvidThink.

The rapid growth and innovation in the campus NaaS market underscore Silicon Valley's belief that this new segment will play a crucial role in shaping enterprise networking by 2030. As startups continue to push the boundaries of what's possible with NaaS, established vendors will need to adapt quickly to maintain their market positions in this fast-evolving landscape.

For a detailed analysis and insights into the future of Campus NaaS, download the full 2024 Campus NaaS Research Brief from AvidThink.

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Starlink Boosts Uplink Capacity of Community Gateways to Multiple Gigabits

Starlink is enhancing the uplink capacity of its Community Gateways to the multiple gigabit range. The first Starlink Community Gateway was launched on the remote island of Unalaska, Alaska, late last year.

Starlink reports that its Community Gateways can deliver fiber-like speeds, with local providers distributing connectivity to homes, businesses, and governments using last-mile fiber, fixed wireless, and mobile wireless solutions. The Community Gateway traffic transits through Starlink’s global laser mesh network and utilizes high-bandwidth Gateways operating in a dedicated Ka spectrum band.

Starlink currently offers Community Gateways with up to 10Gbps symmetrical bandwidth, starting at $75,000 per Gbps per month, with a one-time upfront cost of $1,250,000.

On X, Elon Musk posted the following:

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CoreWeave Selects Bloom Energy's Fuel Cells for AI Data Center Power

Bloom Energy will deploy its proprietary fuel cells to generate on-site power for CoreWeave at a high-performance data center in Volo, Illinois, owned by Chirisa Technology Parks. The state-of-the-art data center, designed for high-density deployments with advanced cooling systems, will enable CoreWeave to offer efficient cloud solutions for AI applications. The installation of Bloom’s fuel cells is scheduled for commissioning in Q3 2025.

Bloom Energy’s solid oxide fuel cells are known for their high efficiency and reliability. These fuel cells generate electricity through an electrochemical process using natural gas or biogas, which results in lower greenhouse gas emissions compared to traditional combustion-based power generation. The technology provides consistent and uninterrupted power, making it suitable for high-demand environments such as data centers. 

“Bloom Energy is thrilled to have been selected by CoreWeave,” said Aman Joshi, Bloom Energy’s Chief Commercial Officer. “This validation from CoreWeave, a leader in AI, is a testament to our leading-edge technology and its importance to AI.”

“We’re proud to partner with Bloom Energy and utilize their industry-leading solid oxide fuel cell technology,” added Brian Venturo, CoreWeave’s Chief Strategy Officer. “This partnership will allow us to deliver unmatched performance and reliability to our customers while advancing our sustainability objectives.”

https://newsroom.bloomenergy.com/news/bloom-energy-and-coreweave-partner-to-revolutionize-ai-data-center-power-solutions-6903732

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NETSCOUT Launches Business Edge Observability Suite for Remote Locations

NETSCOUT SYSTEMS introduced its new suite of Business Edge Observability products. The suite includes the nGenius Edge Sensor and Remote InfiniStreamNG solutions, designed to enhance IT observability at remote locations, such as retail stores, manufacturing facilities, banks, utility companies, hospitals, and government offices. 

“With the rise of edge computing, IoT solutions, front-line interactions, perimeter threats, and hybrid workers, detailed visibility into remote resources, exchanges, and application experiences is more critical than ever,” said Mark Leary, research director, network analytics and automation, IDC. NETSCOUT’s new products address the challenges posed by the increased complexity of SASE, SD-WAN, SaaS, and UCaaS services, which traditional methods often fail to manage effectively. The combination of synthetic transaction capabilities and deep packet inspection (DPI) in NETSCOUT’s offerings helps IT teams quickly identify and resolve issues, ensuring high-quality digital experiences at remote sites.

Key Points:

• Business Edge Observability Suite: Includes nGenius Edge Sensor and Remote InfiniStreamNG.

• Enhanced IT Observability: Focus on remote locations to manage mission-critical applications and services.

• Rising Need: Increased edge computing, IoT solutions, and hybrid work demand detailed visibility.

• Research Findings: Uptime Institute reports significant costs of outages, reinforcing the need for automated IT operations.

• Technological Integration: Combines Adaptive Services Intelligence® (ASI) with synthetic testing and automatic decryption for comprehensive visibility.

https://www.netscout.com/

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