The Friday File: European vendors struggle in Q1 as Huawei hypes AI

Mobile World Live (MWL) brings you our top three picks of the week as Ericsson and Nokia warned of further RAN declines, Huawei outlined its AI credentials and satellite companies pushed the importance of MNO partnerships.

Ericsson forecasts further RAN woes in 2024

What happened: Ericsson reported a net sales decline of 14 per cent to $4.9 billion in Q1 2024 while it was a similar story for rival Nokia, which booked a 20 per cent decrease to €4.7 billion.

Why it matters: Ericsson pointed to a decline in Networks, a result of low spend as operators continued to stay cautious with investments, a factor also bemoaned by Nokia. Head of networks at Ericsson Fredrik Jejdling said the results reflected a “seasonality pattern”, while pitching its gross margins as a reason to be optimistic. Over at Nokia, boss Pekka Lundmark expects the market to pick up later in the year.

Huawei outlines moves to capture AI upside

What happened: Eric Xu, Huawei’s rotating chair, kicked off the company’s annual analyst summit in Shenzhen, outlining bullish ambitions around AI.

Why it matters: Xu explained the company is pursing a number of initiatives across multiple tracks to take advantage of new opportunities in AI. In addition to driving advancements in the technology to build “thriving ecosystems for shared success”, he said Huawei is actively integrating the technology into its internal management to improve operating efficiency. This includes upgrading its intelligent assistant built on its Pangu industry models, and revolutionising network operations and maintenance with automated driving network services.

Feature: Satellite experts back MNOs as key to NTN connectivity

What happened: Experts from Intelsat, Viavi Solutions, Kratos and GSMA Intelligence were on the same page on the importance of operators’ role in pushing forward non-terrestrial services during a panel discussion hosted by MWL.

Why it matters: According to Gerry Collins, director of product management for mobile networks at Intelsat, the telecoms industry is reaching a tipping point with the “hybrid network” as non-terrestrial offerings began to take off, and opportunities await for MNOs as long as there is collaboration. Head of research and consulting at GSMAi Tim Hatt believes MNOs are keen to team with satellite providers to deliver global coverage, adding there is a shift in discourse that is now leaning towards regulations and real-word applications.