HELSINKI (Reuters) – The renowned telecoms giant AT&T from the United States and the distinguished Finnish network equipment manufacturer, Nokia, have officially inked a comprehensive expansion agreement that is set to revolutionize AT&T’s voice infrastructure and bring cutting-edge advancements to their 5G network automation in the United States, Nokia disclosed on Tuesday.
This significant agreement comes on the heels of Nokia losing a substantial contract to its Swedish competitor Ericsson from AT&T. The U.S. operator selected Ericsson at the conclusion of 2023 to construct a state-of-the-art telecommunications network that will encompass 70% of its wireless traffic in the United States by the latter part of 2026. Subsequent to AT&T’s substantial $14 billion five-year agreement with Ericsson, Nokia set forth a smaller-scale five-year deal with AT&T in September to establish a fiber network in the U.S. The latest development sees Nokia securing a second deal with AT&T on Tuesday for the implementation of cloud-based voice core applications and the utilization of Nokia’s cutting-edge network automation software.
Raghav Sahgal, the President of Cloud and Network Services at Nokia, conveyed to Reuters via email, “This agreement is of paramount importance for Nokia as it reinforces the strong and long-standing partnership between Nokia and AT&T. It spans multiple years and technologies that are poised to unlock new 5G functionalities.” The upgrade to AT&T’s core network is slated to facilitate the rollout of innovative voice services, encompassing the integration of artificial intelligence and machine learning capabilities.
Although the financial details of the deal remain undisclosed, both companies expressed their satisfaction with the collaboration. Yigal Elbaz, the Senior Vice President of AT&T’s Technology & Network Services, affirmed, “We are delighted to extend our alliance with Nokia to further enhance our network operations and introduce new services that are better aligned with the evolving needs of our customers.”
Last week, Nokia reported robust fourth-quarter adjusted operating profit and sales figures, exceeding market expectations. The company attributed this success to the heightened demand for telecoms equipment from mobile operators in North America and India. Nokia also expressed optimism about its prospects for 2025. In a strategic move to capitalize on the flourishing artificial intelligence sector, Nokia had finalized the acquisition of Infinera in a deal worth $2.3 billion last year. This acquisition positions Nokia to benefit from the substantial investments pouring into data centers, including initiatives like the $500 billion Stargate project supported by OpenAI, SoftBank, and Oracle.
(Reporting by Anne Kauranen and Supantha Mukherjee, Editing by Louise Heavens)
