Nokia secures multi-year agreement with AT&T to enhance voice services and network automation.
U.S. telecom giant AT&T and Finnish network equipment maker Nokia have signed a multi-year expansion agreement to enhance AT&T’s voice services and 5G network automation in the United States, Nokia announced on Tuesday.
This deal follows AT&T’s decision in 2023 to award a major contract to Swedish rival Ericsson, which will build a telecom network covering 70% of AT&T’s wireless traffic by late 2026. After AT&T’s $14 billion, five-year agreement with Ericsson, Nokia secured a smaller five-year deal in September to develop a fiber network in the U.S. Tuesday’s announcement marks Nokia’s second agreement with AT&T, this time focusing on cloud-based voice core applications and network automation software.
Raghav Sahgal, President of Cloud and Network Services at Nokia, emphasized the importance of the deal, highlighting that it strengthens Nokia’s long-term relationship with AT&T while enabling new 5G functionalities. The core network upgrades will support advanced voice services, including AI and machine learning integration.
While the financial terms were not disclosed, AT&T’s Senior VP Yigal Elbaz expressed satisfaction with continuing the partnership, stating that the collaboration will enhance network efficiency and customer experience.
Last week, Nokia reported stronger-than-expected Q4 earnings, driven by increased demand for telecom equipment in North America and India. The company remains optimistic about 2025. To capitalize on the AI-driven data center boom, Nokia also announced a $2.3 billion acquisition of Infinera, aiming to benefit from massive investments in projects like the $500 billion Stargate initiative, backed by OpenAI, SoftBank, and Oracle.
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