Nokia Networks business revenue fell 9 percent in Q3 2017, indicating challenges related to market conditions and certain projects in mobile networks, primarily in North America and Greater China.

Nokia said its revenue from Networks business fell 9 percent to EUR 4.823 billion in Q3. Nokia’s broadband networks revenue dipped 17 percent to EUR 2.099 billion. Nokia’s Global services revenue dropped  percent to EUR 1.359 billion. Nokia’s IP networks and applications revenue decreased 4 percent to EUR 1.365 billion.

On a positive note, Nokia said it added 60 new clients in adjacent areas of prime telecom business. Ericsson could not execute this remarkable growth strategy though Ericsson with the new CEO is still looking for more media deals.

Nokia added 60 new customers in addition to its existing communication service providers. Nokia achieved 8 percent sales growth in adjacent areas. Nokia is winding down Alcatel-Lucent’s third-party integration business.

China Pacific Insurance Company is the first large enterprise win for Nokia’s Nuage business in China. US-based cable operator WOW! is yet another new client.

“As the market transitions to 5G, I believe that the benefits of our portfolio will become even more apparent given that 5G is about much more than Radio. It requires Cloud core, IP routing, transport of many kinds, fixed wireless access, Software-Defined Networking and more – and Nokia is one of the very few companies that is able to meet all those needs,” Nokia CEO Rajeev Suri said.

“On the sales side, we saw constant currency growth in Global Services and IP Routing as well as our Middle East and Africa, and Asia-Pacific regions,” Rajeev Suri said.

Nokia’s Applications & Analytics business achieved its fifth consecutive quarter of order growth in Q3, showing Nokia’s progress in software business.

Nokia Networks gross margin reached 38.6 percent. Nokia’s Global Services and IP Networks and Applications delivered significant improvements in operating margin compared to Q3 2016, at 8.1 percent and 10.7 percent, respectively.

Nokia’s Mobile Networks business revenue is expecting challenges in 2018 due to the result of the multiple technology transitions underway; robust competition in China; and near-term headwinds from potential operator consolidation in a handful of countries.

Mobile Networks has experienced both revenue pressure and an increase in expected network equipment swap costs.

Nokia said it is taking AirScale products to all its geographies, including with North American telecom customers. AirScale assists mobile operators to competitiveness, by addressing cost challenges and setting a new standard for performance and flexibility.

Nokia will be making additional investment in Mobile Networks to maintain product leadership. Despite investment, Nokia will be targeting EUR 1.2 billion cost savings in 2018.

“These savings come at a slightly higher cost than previously expected, and we continue to assess opportunities to deliver further savings in the area of cost-of-goods sold,” Rajeev Suri said.