In this optical market roundup: Nokia advances its net zero global greenhouse gas emissions targets by ten years; the optical transport market declined by 6% in Q4 of 2023; and Arelion gained a new IP services customer in Mexico.

Kelsey Ziser, Senior Editor

February 27, 2024

4 Min Read
Nokia sign

In this optical market roundup: Nokia advances its net zero global greenhouse gas emissions targets by ten years; the optical transport market declined by 6% in Q4 of 2023; and Arelion gained a new IP services customer in Mexico.

Nokia commits to net zero emissions by 2040

Nokia has committed to reaching net zero global greenhouse gas emissions (GHG) by 2040 – ten years ahead of its previous target. This new goal is also ahead of the Paris Agreement net zero target for 2050.

"We already help our telecoms customers to decarbonize by building sustainable, high-performance networks, and we work with a rapidly growing range of enterprise partners to reduce emissions and improve productivity," said Pekka Lundmark, President and CEO of Nokia, in a statement. "That journey will only accelerate, as Nokia launches more energy efficient solutions in next generation mobile, fixed, IP and optical networks and in software, silicon and systems."

The optical giant previously announced plans to reduce its Scope 1, 2 and 3 GHG emissions by half by 2030 from a 2019 baseline. This week, Nokia said it will accelerate the process of decarbonizing its own operations.

Nokia had its 2030 Science Based Target (SBT) validated by the SBTi in 2017. The SBTi is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).

Related:Ciena updates sustainability targets as telecom grapples with greenwashing

Nokia plans to reduce its GHG emissions by 50% across its value chain, targeting Scopes 1, 2 and 3. Decarbonizing its operations will focus on Scopes 1 and 2, and includes decarbonizing its car fleet and facilities. The company has also submitted its net-zero letter to the SBTi for review.

Scope 1 emissions are direct emissions from company controlled or owned sources (such as fuel burned from a company's vehicle fleet). Scope 2 are indirect emissions from purchased electricity and HVAC systems (heating and cooling company buildings). And Scope 3 are any other emissions associated with a company's activities or value chain, according to Sustain Life and NationalGrid.

Nokia has also committed to using 100% renewable electricity in its own facilities by 2025 and has a target of reaching 95% circularity by 2030 in relation to operational waste. Circularity is the process of reusing and redesigning materials and products to reduce waste, and keeping materials and products in circulation for as long as possible, according to the EPA.

In 2023, Nokia reduced the average power consumption of its 5G mMIMO basestations by 50% from a 2019 baseline.

Optical transport market dropped 6% in Q4 – Dell'Oro

In Q4 of 2023, the optical transport market dipped 6% year-over-year (YoY), according to research group Dell'Oro.

Excess inventory, negative macroeconomic conditions and high interest rates in North America, Europe and Japan contributed to the reduced demand for optical equipment, according to Jimmy Yu, VP at Dell'Oro.

"North American service providers accumulated excess inventory after splurging on equipment in 2021 and 2022," Yu said in a statement. "We estimate that North American optical equipment sales increased nearly 30 percent in that period. Hence, a decline in 2023 was expected to occur."

For the full year, the optical transport market grew 2% globally to reach about $16 billion in 2023.

Ciena, FiberHome and Nokia were among the vendors that gained the most market share in 2023, while Cisco and Fujitsu lost the most market share.

Following a two-year decline, the market in China significantly improved as more service providers in the region invested in their optical backbone.

Arelion expands IP services in Mexico

Global Internet carrier Arelion, formerly Telia Carrier, is expanding its customer base in Mexico by providing IP services to telecom and IT services company Conexity.

Arelion will provide Conexity and its customers in Mexico with access to Arelion's Internet backbone, AS1299, in addition to IP transit services.

Based in Monterrey, Mexico, and a subsidiary of Gentor, Conexity provides private video, voice and data link crossings, and point-to-point private links for business and service provider customers in private and government sectors.

Arelion has nine points of presence (PoPs) in Mexico in addition to high-capacity fiber routes to provide connectivity to wholesale and enterprise customers in the region. Arelion also provides direct connectivity to Oracle Cloud Infrastructure via OCI FastConnect in the new Oracle Cloud Monterrey Region in Mexico.

About the Author(s)

Kelsey Ziser

Senior Editor, Light Reading

Kelsey is a senior editor at Light Reading, co-host of the Light Reading podcast, and host of the "What's the story?" podcast.

Her interest in the telecom world started with a PR position at Connect2 Communications, which led to a communications role at the FREEDM Systems Center, a smart grid research lab at N.C. State University. There, she orchestrated their webinar program across college campuses and covered research projects such as the center's smart solid-state transformer.

Kelsey enjoys reading four (or 12) books at once, watching movies about space travel, crafting and (hoarding) houseplants.

Kelsey is based in Raleigh, N.C.

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