Well, we do believe it’s going to be a gradual build out, that it will be nationwide like it’s happening in India right now. In every country, I think is borderline to unlikely to assume and I wouldn’t do that. But if you look at how you would build out a network, of course, you’re going to build it out where you have customers first and then you gradually expand from there. I want to add one more thing, which I think is critical. And if you look at fixed wireless access, so look at net broadband additions in the most developed fixed wireless access market in the world is the U.S. And actually, over the last few quarters, almost all growth in broadband connections comes from fixed wireless access. And that’s why we see that this kind of drive for cost-efficient rollout and cost-efficient deployment of broadband to the citizens of a country, fixed wireless access will play a big role.
We see numbers in India being very large, and one of the operators talking about 100 million connections there. We see those to be built out that’s going to drive new revenue streams for the operators as well. So we see this build-out to happen and it’s going to happen, of course, over several years.
Peter Nyquist: Thank you, Börje. Thank you, Francois, for that question. So we are now going to the next question in this Q&A session. So the next question is from Alexander Duval at Goldman Sachs.
Alexander Duval: I just had a clarification on market outlook. You’re talking today about scope for gradual market recovery this year and improvements next year. Just want to understand the main factors to drive that kind of recovery. I would note, for example, in the U.S., you talk about 50% decline in the market or at least in revenues and that’s obviously one of the front-runners on 5G. One would assume that, that would be followed by other markets that are a bit further behind also declining. So I just want to understand what would drive that improvement into next year? And then I’ve got a quick follow-up.
Peter Nyquist: Carl?
Carl Mellander: Yes. I think actually Börje talked about a lot of those key drivers for exactly what you’re asking about, the recovery. I mean we see data traffic growth continuing at very, very high speeds in North America and in other markets as well. That’s a key driver, of course, because for an operator to be able to deliver the customer experience that they need to, investments in the network will be required to cater for this. And 5G, of course, also happens to be the most cost-effective way of delivering those gigabytes through the networks. But then you have the energy side and CO2 side of it as well, driving investments in more modern technology to get your energy bill down, not to mention the new applications that are coming onstream.
And we have seen new XR or VR devices launched by several players now. Of course, they will — once they become a bigger part of the ecosystem, of course, will drive very high demands on the network. So all these fundamentals are there, and that’s what we believe will drive the long-term recovery of the market.
Borje Ekholm: And you also have to add — that’s the long-term drivers, and those are the fundamental drivers, right? Short term, we also have the inventory adjustments, which is working its way through. The — in several markets around the world, you saw over ’21 and ’22 our customers to build up inventory to manage an uncertain supply chain, call it that. And that led them to have excessive inventory and those have been working its way through the systems over this year. So of course, those will run its course. Once they’ve run its course, then we’re back to the fundamental drivers of the demand for CapEx. And that’s why we are confident that, that will come back. Exact timing is, of course, in the hands of customers and depends on many considerations they have to do.
