What do Vendors Need to Win in 5G?

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By Dimitris Mavrakis | 4Q 2017 | IN-4842


Early 5G Will be Stable for Most Vendors


While the telecoms industry is preparing for the first wave of 5G standards in December 2017, vendor revenues and profits are being challenged due to many factors: nationwide large-scale LTE deployments have largely been completed, giving way to topical upgrades, while telco cloud revenues have not yet created significant revenue streams. This is evident in the latest vendor financial statements for Q3 2017, where both Ericsson and Nokia have reported lower quarter-on-quarter sales and a relatively stagnant market. However, the most interesting quotes from both vendor earnings transcripts were the following:

Ericsson: “We have managed to increase our LTE market shares in Mainland China to position Ericsson in 5G. However, this will have a dilutive effect on gross margin in Mainland China in Q4 2017, but the ambition is to continue to deliver double digit adjusted operating margin in Networks in Q4 2017.”

Nokia: “While we do not see any widespread worse…

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