Volatile demand in the telecommunications equipment business. Strong competition in core markets, putting pressure on prices and margins. High restructuring costs to integrate Alcatel-Lucent and costs for network equipment swaps of about €1.7 billion expected over 2017–2018. No. 2 or 3 positions across nearly all segments in Nokia's Networks division, representing 92% of 2016 revenues. Large scale and comprehensive product portfolio. Large patent portfolio, supporting cash flow generation. Strong balance sheet and liquidity position, with reported gross cash and net cash of €7.9 billion and €4 billion as of June 30, 2017, respectively. Potential for volatile cash flow generation over the industry cycle. Our forecast of negative discretionary cash flow in 2017 and 2018, despite the receipt of an up-front
