Nokia's results demonstrate the consistent rise of the private wireless

Private wireless networks have increased in popularity, and it stands out in Nokia's earnings for the first quarter of 2023.

Nokia configures private wireless networks as a plug-and-play collection of modular hardware and software components that enable users to deploy 4G and 5G private networks, typically to support industrial capabilities.

Nokia's Q1 2023 financial report reveals that its private wireless network customer base continues to expand robustly. There are currently 595 enterprise customers for the segment, who operate over 1,500 mission-critical private networks across airports, logistics companies, manufacturing, mines, ports, and utilities.

The Finnish company reported mixed earnings on April 20, its first since a major rebranding effort intended to position it as "a B2B technology innovation leader unleashing the exponential potential of networks" CEO Pekka Lundmark projects full-year revenues for 2023 between €24.6 billion and €26.2 billion.

Nokia's revenue is broken down into four distinct segments: network infrastructure, mobile networks, cloud and network services, and "Nokia technologies."

After unveiling its new optical networking platform PSE-6s and AirScale Habrok, its latest 5G massive MIMO radio powered by a new generation of the ReefShark chipsets it developed with semiconductor company Marvell, network infrastructure had a particularly strong quarter with 13% growth. (According to Nokia, the new radios are 36% more energy efficient, reducing electricity expenditures.)

CEO Lundvark warned: “We are starting to see some signs of the economic environment impacting customer spending. Given the ongoing need to invest in 5G and fiber, we see this primarily as a question of timing; nevertheless we will maintain our cost discipline to ensure we can successfully navigate this uncertainty.”

Nokia (like others in the industry) offers dedicated cell sites and core network servers for its private wireless network clients, as well as a suite of SaaS services to liberate customers from the constraints of public cellular networks (screenshot from its catalog shown above). Private 5G networks now offer such compelling bandwidth and capabilities that they are increasingly used to support automation processes and the Internet of Things (IoT) with enhanced performance and privacy. These networks are typically in sensitive or remote locations.

Regardless of the size of the clientele, the expansion of private networks stood out.

"While there is a growing demand for 5G industrial devices that can access private wireless networks, there are more than 6,800 LTE 1 enabled non-phone devices and many industrial systems with built-in 4.9G/LTE modems; 85% of industrial use cases can already be supported by 4.9G/LTE."