Nokia Network Infrastructure (NI) 1Q21 Optical Networks Communiqué
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Nokia Network Infrastructure (NI)
1Q21 Optical Networks Communiqué
Quarterly Analyst Report
29 April 2021
Information provided for the exclusive use of Industry Analysts preparing market share, sizing and
1/6 forecast publications. No reproduction or distribution is permitted without Nokia’s written consent. ©2021 NokiaContents
1 Introduction .......................................................................................................................... 3
2 Results Commentary ........................................................................................................... 3
3 Key Figures ............................................................................................................................ 5
4 Recent Optical Networks Announcements ....................................................................... 6
5 Contact .................................................................................................................................. 6
Information provided for the exclusive use of Industry Analysts preparing market share, sizing and
2/6 forecast publications. No reproduction or distribution is permitted without Nokia’s written consent. ©2021 Nokia1 Introduction
This communiqué provides 1Q21 revenues and market commentary related to Nokia’s Optical
Networks portfolio. Please note that results from Nokia’s Submarine Networks (ASN) business
are not included in this report.
2 Results Commentary
Revenue and key drivers:
• Revenues in 1Q21 were $420 million in USD, down 17% QoQ, and up 12% YoY.
• CALA saw solid double-digit QoQ and YoY growth.
• APAC had single-digit QoQ and double-digit YoY growth.
• Nokia won several key projects globally, including new and upgraded networks for access,
metro, DCI, and backbone networks for webscales, communication service providers (CSPs),
cable MSOs, research and education networks, and enterprises.
Key Announcements:
• Nokia announced it has been selected by Deutsche Telekom as a long-term strategic partner
to transform the operator’s optical network into a service-centric platform that can easily
scale to meet Industry 4.0 demands. The transformation will enable Deutsche Telekom to
deliver an enhanced service quality experience to its customers by upgrading the existing
network to a more scalable and automated one. Deutsche Telekom will also benefit from
automation to simplify and streamline operational tasks to make more efficient use of
network resources. At the heart of the network transformation are the Nokia WaveFabric
service-ready platforms and Nokia WaveSuite software portfolio, which includes the Nokia
1830 Photonic Service Switch (PSS) powered by the PSE-V family of coherent DSPs (digital
signal processors). The solution will transform Deutsche Telekom’s optical core network and
strategic regional distribution sites, enabling optimized performance and a consistent
customer experience across Germany.
Information provided for the exclusive use of Industry Analysts preparing market share, sizing and
3/6 forecast publications. No reproduction or distribution is permitted without Nokia’s written consent. ©2021 NokiaRegional highlights:
• EMEA: The publicly announced Deutsche Telekom win exemplifies recent success in securing
end-to-end network transformation projects that utilize the breadth of the PSE-based
WaveFabric portfolio complemented by WaveSuite automation software applications. Nokia
won several significant non-public projects for new and upgraded access, metro, long-haul,
DCI, and subsea/terrestrial networks as well as a redundant, 400G-based terrestrial DCI
network using PSE-Vc to support a satellite network. The projects support CSPs, ISPs, IXPs,
and cloud SPs, cable MSOs, as well as National Research and Education Networks (NRENs),
and power utilities. The wins feature new products and technologies including PSE-V, 1830
PSI-M and PSI-L, and WaveLite Metro 200.
• APAC: Significant non-public wins include a greenfield metro OTN network win with a tier 1
enterprise service provider in India. The solution is based on the Nokia 1830 PSS-24x
Packet/OTN Switch and advanced FlexGrid ROADM technology. Another key win is for the
first deployment in India of Nokia’s C+L-band WDM system that will double network capacity
and expand coverage for a key regional segment. Other wins include network expansion and
upgrade projects for access, metro, DCI, and core networks for CSPs and webscales.
• North America: In 2020, Nokia displaced or beat out several competitors to secure
significant revenue and share growth in the cable MSO market. MSO wins indicate continued
expansion of optical network capacity with planning for 400GE clients in the metro to deliver
on increased demand from enterprises for wavelength business services and to interconnect
with private data centers. MSO residential metro infrastructure upgrades continue in all
metro networks driven by increased reliance on internet access. Nokia also won two regional
carrier deals, delivering transport solutions to help regional carriers provide 100G services to
more homes and businesses with their optical infrastructure.
• CALA: Nokia won a major project with a tier 1 CSP for a subsea/terrestrial system. Other
network expansion project wins with tier 1 CSPs contributed to strong quarterly and year-
over-year regional growth.
Product and technology trends:
• Nokia shipped 17,500 coherent ports in Q1, an increase of 45% year-over-year.
o Interfaces based on PSE-3 fourth-generation chipsets represented 50% of total
coherent ports shipped.
Information provided for the exclusive use of Industry Analysts preparing market share, sizing and
4/6 forecast publications. No reproduction or distribution is permitted without Nokia’s written consent. ©2021 Nokiao Shipments of line cards based on the PSE-3s super coherent digital signal processor
equate to 2,000 ports shipped for the quarter.
• Shipments of coherent ports in the compact modular form factor now represent 17% of
total ports shipped.
• Nokia WaveSuite automation software applications are finding success with CSPs in network
transformation projects. The open applications, such as WaveSuite-Service Enablement, -
Health and Analytics, and – Optimizer, leverage scalable and programmable WaveFabric
systems and the Nokia Network Services Platform (NSP) to help expand, optimize, and
monetize network capacity.
3 Key Figures
1Q21 Optical Networks revenues (not including maintenance) were as follows:
1Q21 Revenues Q/Q Y/Y
USD $419.5m -17% +12%
Euro €349.4m -17% +1%
1Q21 product line revenues were split as follows:
Product Line 1Q21 Revenue Distribution
WDM and P-OTS (1830 PSS, 95-100%
1830 PSD, 1830 PSI, 1830
VWM, 1830 TPS, 1626LM,
WaveLite)
SONET/SDH (1850 TSS, 1665 0-5%
DMX, Legacy)
Information provided for the exclusive use of Industry Analysts preparing market share, sizing and
5/6 forecast publications. No reproduction or distribution is permitted without Nokia’s written consent. ©2021 Nokia1Q21 revenues were geographically split as follows:
1Q21 Revenue
Region
Distribution
EMEA 35-40%
APAC 35-40%
NAR 15-20%
CALA 5-10%
4 Recent Optical Networks Announcements
8 Feb 2021 Nokia to help Deutsche Telekom’s optical transport network modernization
5 Contact
For further information or a follow-up call please contact:
Carol DeMatteo
Industry Analyst Relations
Nokia
carol.dematteo@nokia.com
Mobile: +1 214-728-6197
Information provided for the exclusive use of Industry Analysts preparing market share, sizing and
6/6 forecast publications. No reproduction or distribution is permitted without Nokia’s written consent. ©2021 NokiaYou can also read
