Carl Mellander: Borje, do you want to take the Europe and I take the first one afterwards.
Borje Ekholm: Yes, I’ll tell you can tell you the start part.
Carl Mellander: I go, okay. Hi Sandeep. Now, the factors that you point to, they are relevant and as you see in the report, we are not guiding for specific margins beyond Q4 where we say 39 to 41 in the networks segment, on gross margin. But the factors that you point, of course, are the positive ones that could support gross margin. We have the cost out that will be fully executed by year-end, on the current 12 billion that we have communicated. We are talking also about the market mix recovery, which is needed for us to improve margins going forward. And to the extent that that happens, that should support the gross margins, of course. And I mean, again, we are fully committed to the 15% to 18% EBITDA margin target for the long-term.
And of course, we will work very hard in Ericsson to reach that as soon as possible. I mean, that’s a key message as well and we are dependent on this market mix to improve. At some point, it will come. So, I just want to repeat that again. That is what will drive the margins upwards when that happens.
Borje Ekholm: So tie into your question about the global rollout of 5G, it varies a bit by region, but in average, it’s about one in four that’s upgraded for mid-band, 5G mid-band. And so, it is really, compared to previous generations, we are still relatively early in the cycle. Investments in Europe have been slower than that, in average, depending, it varies a bit by market. But overall, the rollout of 5G especially mid-band have been very, very slow and much slower than India. India basically have nationwide 5G coverage now or at least of the metropolitan areas. In a way, kind of just second to China today, very strong, have also a nationwide 5G stand alone network. So, we are likely to start to see applications now coming out of India as well, leveraging the very strong digital infrastructure.
Europe is not on that map today. We see very limited build out as several of the European operators are under pressure, and you know that in the capital markets as well. So, it is a challenge. Personally, I worry a bit about Europe’s future competitiveness. Infrastructures tend to be something that drives a nation’s long-term competitiveness. And without the digital infrastructure in Europe, it is going to be a bit of a challenge. So, I do think that or I hope that, we will start to see investments come up because it is going to be needed for future and long-term competitiveness of our industry in Europe.
Peter Nyquist: Thanks, Borje. And thanks Sandeep. We are then moving to the last question of this call. And that question will come from — see here, Sebastien Sztabowicz from Kepler Chevreux.
Sebastien Sztabowicz: One question on Vonage. You did this big bigger write off on Vonage because the business seems to be slowing down, which part of Vonage business is really slowing down? And what kind of a growth trajectory do you expect for the Global Communication platform segment for the next few years? Can you give us a little bit tougher in addition there? And the second one is linked to Cloud Software and Services, which has been growing nicely over the last four quarters. Do you see finally 5G core deployments picking up? Or is there any different reason for this business to restart to grow? And what is the outlook for the next few years for Cloud Software and Services?
