But here, we have more work to do. We will — and please remember that it’s a different business model with a large part of deferred revenues. So we create a recurring business there. Will impact the P&L initially, but over time it will be a highly profitable part. I would also say on Dedicated Networks, we are still early outside of China. There are some use cases, imports, some basic early manufacturing, but it’s still a relatively small market around the world. If you compare it to China, China has — by the end of last year, they had more than 6,000 dedicated networks deployed in China. We see in, call it, the Western world, Europe and the U.S., maybe we have about 1,000, maybe 1,500, but it’s significantly smaller than it is in China. And that, I think, points to the actual opportunity here being much larger than we’re servicing now.
And of course, this will depend on establishing the use cases and the way we approach the market. So we see that as a good potential for growth going forward, but we’re still early on in that. If we look at our Platform business in global communication platform, there we’re having a good traction, as you can see on the communication APIs that we’re in the market with today and that’s the old Vonage business growing 19% in second quarter. Of course, that is impacted by the general economic conditions. So it has been going a bit slower than it did ’21 and ’22, but we still see a fairly good growth rate continuing. What we’re very excited about is the network APIs. And we launched the first or launched — it’s a bit exaggeration, but we showcased the first network APIs at Mobile World Congress together with 3 operators in Spain: Vodafone, Telefónica and Orange.
We are continuing dialogue with a number of leading operators on how to establish this network API market. So when we have more development there, we will talk about it. But what we see is it’s an excitement in the industry. And here, we are shaping the industry landscape by driving the whole adoption of network APIs. And what we see here is that, that’s the way network resources will be consumed in the future. They will be called up by applications and paid for through a CPaaS platform. So we’re very excited about that, but it’s still early in the development. So give us a few quarters here, and you will start to see some progress.
Peter Nyquist: Thanks, Börje.
Andreas Joelsson: So maybe a follow-up just on what the Chinese enterprises see in these dedicated networks as a benefit that you are not seeing outside of China. And how can you help the enterprises seeing that benefit?
Borje Ekholm: Yes. That’s a great question, Andreas. As a matter of fact, what we see in China is that they are developing completely new use cases. So what is unique with cellular connectivity and 5G in particular is to get reliable, always available and secure connectivity. And that’s critical in an enterprise application. So take a manufacturing site. What we see is a full deployment of sensors. You can develop a full digital twin of the factory and basically make adjustments in the digital twin and then implement it very quickly and very flexibly. So that’s one use case. Another use case that’s also gaining traction is the in-line inspection. So you actually do image processing of in-line inspection going much faster than manual and as much higher precision.
Then you see more traditional use cases, connect self-guided vehicles. And as a matter of fact, there are some front-running manufacturing sites outside of China where we see deployment of dedicated networks resulting in much higher cycle time, much reduced cycle time, speed in manufacturing goes up as well as higher quality levels. So we’re starting to see some early signs outside of China, but I will say China is ahead of the new type of applications here.
