Robert Sanders

Rob Sanders from Deutsche Bank questioned the long-term strategy for the Mobile Networks business, asking if Nokia is content with its current scale or aims to recover share, and how that ambition relates to R&D allocation towards hyperscalers. He also asked about the longevity of the fixed wireless access tailwind in India.

Answer

President & CEO Justin Hotard described Mobile Networks as a unique and strategic asset, emphasizing its importance alongside core networks and IP. He believes the AI super cycle will drive a future investment wave. CFO Marco Wirén explained that the fixed wireless access trend in India is driven by operators capturing customer bases in areas with underutilized mobile networks, a strategy being explored globally.

Rob Sanders of Deutsche Bank inquired about the strategic ambition for the Mobile Networks business and how that influences R&D allocation towards hyperscalers. He also asked about the longevity of the FWA tailwind in India.

Answer

President & CEO Justin Hotard described Mobile Networks as a strategic asset that must be viewed with the Core and IP portfolios, expecting the AI supercycle to drive future investment. CFO Marco Wirén explained that the FWA trend in India is part of a global operator strategy to capture customers in underutilized network areas ahead of fiber rollouts.

Robert Sanders asked about the agility of Nokia's EMS partners in moving production to mitigate tariffs and whether Nokia can pass on these costs. He also requested an update on the BEAD program timeline.

Answer

President and CEO Justin Hotard described the tariff situation as dynamic and emphasized that the company is evaluating all mitigation options, leveraging its flexible global manufacturing network. On the BEAD program, he reiterated that Nokia does not expect a material impact this year, viewing it as a longer-term driver for the stable, but slower-growing, Fiber business.

Inquired about the agility of EMS partners to move production in response to tariffs and Nokia's ability to pass on costs. Also asked for an update on the timing of the BEAD program's impact.

Answer

The tariff situation is dynamic, and Nokia is evaluating all mitigation options, leveraging its historically agile global manufacturing network. The BEAD program is not expected to have an impact this year, and while it will drive future growth in fiber, that market is expected to grow more slowly than optical and IP networking.

Robert Sanders asked if the reported investigation into the Juniper deal creates opportunities for Nokia and followed up by asking for the allocation of the new EUR 100 million investment between R&D and sales channels.

Answer

CEO Pekka Lundmark declined to comment on specific speculation regarding the Juniper deal but agreed that M&A activity in the industry generally creates opportunities for competitors. Regarding the investment, he confirmed that the EUR 100 million will be allocated to both R&D to broaden the product offering and to go-to-market initiatives to expand channel and sales presence.

Robert Sanders from Deutsche Bank asked about spending trends from the other two major operators in North America, questioning if they are responding to AT&T's network modernization and if Ericsson has visibility into a recovery.

Answer

CEO Börje Ekholm declined to comment on specific customers due to the competitive market. However, he emphasized that the sales increase in North America was broader than just a single contract, implying positive contributions from other customers as well.