Global optical network hardware spending rose 5 percent in the first quarter of 2015 as EMEA began to show signs of recovery and North American web-based companies continued to enhance their optical networks, according to IHS Infonetics Research.
Ericsson CEO Hans Vestberg scheduled a meeting with senior management to discuss potential large-scale mergers and acquisitions that would help the company to compete against a merged Nokia and Alcatel-Lucent.
Nokia's acquisition of Alcatel-Lucent was cast into doubt by shareholders of the French-U.S. equipment vendor who are unhappy with the €15.6 billion ($17 billion) price agreed by the companies' managers.
Nokia said it is shifting its long-term strategy for its Nokia Technologies unit and will cut up to 70 jobs as a result. It's unclear at this point how Nokia's strategy for the division is changing.
Alcatel-Lucent CEO Michel Combes said a proposed take over by Nokia Networks is not affected by the companies' respective earnings in the opening quarter, after the French-U.S. equipment vendor's net loss increased year-on-year.
Alcatel-Lucent reported that it saw first-quarter access unit revenues rise 13 percent year-over-year to $2 billion.
Alcatel-Lucent said it is still dealing with lower carrier spending in the U.S. but still managed to boost its overall revenue in the first quarter and improve its gross margins on higher sales of software products.
The next generation of wireless known as 5G will provide at least 10-fold improvement in the user experience and must be able to handle low-cost devices across the whole range of 5G frequency bands, according to Nokia Networks.
Nokia reported stronger sales in North America in the first quarter, and in its networks business overall. However, the underlying profit of the company's networks business fell, and investors grew worried about drooping margins.
Verizon Communications will move to a software-centric network architecture to reduce costs and deliver new services to customers faster. The company today announced that Alcatel-Lucent, Cisco Systems, Ericsson, Juniper Networks and Nokia Networks will be its five initial software-defined network vendors.