Pekka Lundmark: Was this question, I had a little bit difficult to hear all the points. So was this about fixed networks and phone market…
Sébastien Sztabowicz: Yeah. Fixed network and the outlook for fixed network for the coming years?
Pekka Lundmark: Yeah, yeah. I mean we continue to believe in a highly favorable outlook for fixed networks because if you look at, for example, the stats that we gave in the Q2 report as to how many percent of the world’s homes have been fast or connected. We are still looking at pretty low numbers. And then we have to remember that already those homes, which are connected today, they will be subject to capacity upgrades. And all of this will be further supported by the various government programs like the US program that we discussed where the goal of the government is to have a gigabit service in every home. So we believe that this will be a highly attractive market going forward despite the short term slowness. We are number one in GPON globally with more than 40% market share in GPON OLTs, we have 46% market share in XGS-PON, which is the latest generation of 10 gigabit symmetrical GPON, which is used in about 95% of the next-generation PON deployments.
And we are clear technology leader in this segment. So this is a perfect example of a market now where there is a lot of long-term potential combined and also mid-term potential, combined with a strong technology leadership position. So we continue to be pretty bullish in terms of the potential of the fixed market.
David Mulholland: Thank you, Sébastien. We’ll take our next question from Sami Sarkamies from Danske Bank. Sami please go ahead.
Sami Sarkamies: Thanks. Hi. I wanted to follow-up the earlier question by Sandeep regarding puts and takes going into next year. I think you already covered the top line. That is obviously the big unknown. But if we focus on things that you can control, what should we think about OpEx next year, I guess, given the new cost program that has been announced, it shouldn’t at least be higher than this year. And then if we think about gross margins, I guess, those should also be higher next year as you will probably benefit from normalization of geographic mix and there will be also cost measures impacting COGS.
Marco Wiren: Yes. Thank you, Sami. What comes to ’24, of course, because of the uncertainty, we don’t guide ’24 yet. But if we look at the different elements of your question regarding cost saving programs, so like we said, we – ambition is that we get already in year savings of €400 million in ’24. And also, we said that about 70% of the total savings in the program will come from OpEx. And this is our planning right now when it comes to ’24. Then when it comes to exactly development on gross margin levels, partly it depends on the mix as well, both product mix, but also regional mix. And then also how the market recovery is happening and what is the speed, and when we will see in different parts as the market recovery most likely will not be perhaps exactly the same for all our segments that we have. Then we have to also remember that in 2023, we have received savings also from the variable pay that we have in the company.
David Mulholland: Sami, did you have a follow-up?
Sami Sarkamies: Yeah. Regarding the cost savings program, just curious how material contribution could we see from divestments in you reaching the lower cost base?
Marco Wiren: Well, of course, what we are communicating in terms of cost would be – not including any effects from divestments that we would potentially do in the future. So this is on a like – on a comparable basis.
David Mulholland: Thank you, Sami. We’ll take our last question from Didier Scemama from Bank of America. Didier, please go ahead.
