Borje Ekholm: Historically, when we’ve seen these type of market situations, it’s a very short lead time. And that’s why it also depends on software, can we upgrade with only software, et cetera. So it depends a lot about the specific network situation for the customer. That’s why it’s hard to give you a specific answer. But at least we know from the customer discussions we’re having now that a lot of the customers are starting to see deteriorating network performance that actually leads to churn. And that’s why we’re also confident that it will come. I can’t predict exactly. And as a matter of fact, that’s why we never discuss backlog in our industry because it is a relatively short delivery cycle on those type of contracts where you buy capacity.
Peter Nyquist: Thanks, Börje. Did you have a follow-up, Andrew?
Andrew Gardiner: No. That’s fine.
Peter Nyquist: Thank you, Andrew for that question. We will then move to the next question, and I would have Daniel Djurberg at Handelsbanken.
Daniel Djurberg: Two questions, if I may. And starting — coming back to the market recovery and the North America again. Would it be fair to assume that this recovery that you anticipate will come back a bit earlier for some of your peers, including your neighbor issuing a profit warning today. And is this because of it that you have more wins into the urban areas versus the rural areas that might come a bit later?
Peter Nyquist: Börje?
Borje Ekholm: I think you’re better off asking our customers about that. The way — I mean, we — I think we started to talk about this situation in North America already in the end of last year. So it’s developing a bit like we have predicted and actually assumed. And that’s why we said also early on that we need to take the cost items — the actions on the cost side. So we have tried to — not predict, this is a bit to exaggerate, but at least plan for this type of market situation we’re seeing in North America. Then I would also say, of course, they are going to — they have built out networks in urban areas first. But I would also say that’s where traffic growth is the fastest as well. So how that is going to ultimately pan out, I think that’s a bit difficult to predict.
But what we see, and that’s what gives me comfort, is that there is a need for network capacity. There is also a need to deal with the energy cost challenges that comes out. Simply you need more modern equipment to lower your energy bills for the operator. You will need more — newer equipment to deal with the CO2 challenges and the CO2 commitments. So ultimately, when I put that together, it gives me comfort that it will come back. If you then extrapolate to historic experience, we’ve seen this happen in the past. It’s been tough and then a very quick recovery. So we — does the future always look like the past? No, it doesn’t. But at least when you put all of those factors together, it’s a reasonable assumption that we said already in the end of last year that we would see a recovery during the second half.
And that’s what we think is still a reasonable assessment. Then does it look the same for our competitor or not? I mean I don’t know their business mix. I don’t know their situation. So I’ll let them speak for that themselves. But from my point of view, we saw this coming and plan for it.
Daniel Djurberg: Fair enough, I agree there. And a question also, if I may, coming back to the Enterprise. And you talked about the Open Gateway initiative with your quality on demand that you showcased in Barcelona. Is it — have you come any further in terms of monetization and the revenue models on both things and the progress there? If you could be a little bit more specific.
