Francois Bouvignies: So I have two quick questions. The first one is more high level, but if we look at the current environment, especially in North America, quite extraordinary correction. We just hit back to 2018 level and seen a significant growth decline. And given the level of macro uncertainty around the recovery, how do you see the pricing evolving going forward? I mean, do you see any pressure from the operators, given the challenge they are facing so it would be very interesting to know the pricing dynamic here, and if you see any pressure? And maybe from a very high level, if we look at the past 10 years and you say in past two decades, you said that, the mobile network market has been flattish. And your top-line is reflecting this dynamic and yet level of investment remains very high when you look at your R&D, SG&A, I mean R&D is 18% of your sales, SG&A double-digit percentage as well, and the network at least.
So I’m just wondering, is there any thought process that maybe you can make it structurally much more efficient this investment related to the return you get and you see that you have a couple of cost saving programs and it’s not new. We have been doing that for a few years now, but can you go a bit deeper, maybe internally in terms of discussion on the level of investment compared to what you return in terms of revenues, in other words managing the business more for margins or cash flow, if you like, rather than for top-line growth. Is that makes sense?
Peter Nyquist: Should we start Borje?
Borje Ekholm: It’s a highly relevant question you’re asking. This is one of the areas we are looking at. We do believe and not focusing on the North American market here, but we actually face competitors in all other markets or most other markets that actually where we will be evaluated based on technology leadership, on what type of solutions we provide. And therefore, we need to provide leading edge solutions so that drives a bit of the R&D intensity in the industry, which then is very high. Having said that, there are areas where we can leverage much more or improve R&D efficiency in many ways. And one of the things we are working on is actually to get the more efficient R&D. We’ve been take for example this year sales where we have gone from almost a hardware centric model into a software model, and we see now that we can improve the software development efficiency and we are working on that.
And the same thing on the news side, so I do think there are opportunities, but I would also say that given that we compete for global scale with vendors that are investing very heavily, we need to match that. So it’s really a bit of a tricky question. If you would only have a market where technology would not matter, you could actually slow down a bit of the investments, but that would make us uncompetitive in most parts of the world. So I do think we should expect R&D intensity to be high, but we need to be more efficient in the way we develop our solutions. And that is, you actually see part of the cost savings now come out of a bit of a reduction in R&D as well, and you will see that continue.
Peter Nyquist: Borje, you want to take the first question about pricing discussions with customers as well, if you?
Borje Ekholm: Yes, it’s actually a global industry. So when we think about prices, it’s set in competition with the other vendors and that’s kind of where the market environment is. So, that’s why, I would say it used to be very competitive, it continues to be very competitive.
Peter Nyquist: We will then move to the next question and we have the next question coming from Daniel Djurberg at Handelsbanken.
