Table of Contents
Lots here today, mixing news and views, out of Ericsson’s Q3 review. The big headline is that the Swedish vendor has dismembered and dispersed (“dissolved, as such”) its ‘enterprise wireless’ division, home to its private 5G and neutral-host solutions, into its ‘networks’ business – not, it says, to kill it, or run it down, but to streamline its R&D muscle and innovate around indoor connectivity. Interestingly, its earnings calls included vague-strategy about optimizing Starlink-hyped satellite comms for terrestrial roaming – which might, actually, be a sweet spot for private and neutral-host systems with both operators and enterprises. We will see; it sounds like a Nokia-style retreat, but it is presented as a (frustrated) growth tactic.
Also today, there is good commentary from Ericsson chief per Narvinger about the direction of the company, and of the whole industry: that operational discipline is helpful, but won’t grow the market, and that the industry faces a structural problem directly linked to the “AI boom” – which also saw its own sales rise in the quarter on pre-emptive purchasing from cost-conscious customers, mindful of AI price hikes. So the market is “very flattish”, and 5G-nothing is working very well for top-line growth. It’s grim out there, but Ericsson is still managing to eke out a growth story, and has patience, and some new ideas.
James Blackman
Executive Editor
RCR Wireless News
RCR Top Stories
Dissolving P5G: Ericsson is ‘dissolving’ its enterprise wireless unit but keeping its private and neutral-host 5G portfolios, betting on R&D synergies and indoor connectivity, notably with Starlink-style satellite systems.
Vendor scores: Ericsson beat Q3 forecasts on 7% sales growth, but warned AI-driven component costs will pressure margins through 2027, and said growth remains hard to come by – to the point it has rejigged its business (see above).
6G, MNO terms: AT&T, BT, Orange, and Verizon have urged an evolutionary approach to 6G, protecting existing network investments while demanding clear returns. AI uplink traffic and ISAC could justify changes where 5G falls short.
Trouble shooting: AI could help detect hidden network instability via messaging and call fallbacks, but fragmented data is a big obstacle. New models are emerging to correlate granular signals with localized performance problems.
Adiós a AT&T: AT&T has agreed to sell its Mexican business for $2bn, ending a decade-long expansion abroad to focus on US operations. The move simplifies its investment story, but leaves domestic growth exposed to intensifying competition.
AI-Powered Telecom Infrastructure
Supermicro, in collaboration with NVIDIA, delivers AI-powered infrastructure tailored for telcos, enhancing operational efficiency, network management, and customer experiences. Explore now
Beyond the Headlines
Nokia keeps drones: Nokia has excluded its drones unit from the sale of its campus private 5G business to Aurelius. The drones business is under review, it said. Its MPW platform goes with ECE , but will be resold by Nokia also.
Which AI-RAN? The AI-RAN investment case changes with where capacity is constrained. Software on installed RAN has the clearest near-term economics, while accelerated platforms depend on paid utilization, falling inference prices, and more.
Quantum networks: Singtel sees quantum security as a migration challenge rather than a future technology issue, combining QKD, post-quantum cryptography, and ecosystem coordination to prepare telecom infrastructure.
VDF, by numbers: Vodafone’s investor day revealed the scale and shape of its enterprise business, from £1.85bn in annual service revenue to growth bets on network slicing, FWA, SD-WAN, cloud, and security.
MNO ‘earthquake’: SpaceX’s deal for 800 MHz spectrum strengthens Starlink Mobile’s push into terrestrial wireless. But coverage is not capacity, and building a competitive nationwide network could cost tens of billions of dollars.
What We're Reading
Southern Starlink: Starlink faces major hurdles in Global South markets, where low ARPU, spectrum costs, infra needs, and regulatory barriers threaten returns. Partnerships offer a viable route to growth.
Express capacity: Vodafone Business has launched Express Capacity, offering 100G and 400G optical links within 15 days across selected Euro routes, targeting hyperscalers, neoclouds, and enterprises expanding AI and cloud infra.
LoRa edge AI: Kerlink has two LoRaWAN edge gateways for smart buildings and industrial automation, combining sensor comms with local data processing, protocol conversion, and integration with management systems.
Hybrid utility 5G: Heddian is to deploy a private network for US-based Avista Corporation’s utility operations, combining public cellular with private infrastructure. G+D, Druid, and OneLayer will provide SIM tech, private core, and security.
London hollow-core: Colt has deployed hollow-core fiber between two sites in central London. It has worked with Network Planning Solutions and Relativity Networks. The tech uses an air-filled core to reduce latency by around 30%.
Latest RCRtv Interviews
Events
Industry Resources
RCRTech Trend
WiFi driving Telco growth
RCRTech Trend
Rise of Non-Terrestrial Networks (NTN)
