Nokia and AT&T have signed a multi-year expansion agreement aimed at enhancing AT&T’s voice services and automating its 5G network in the U.S. This deal, announced on Tuesday, marks a significant step for Nokia, which follows a setback in 2023 when AT&T selected Swedish rival Ericsson for a major telecoms contract. Despite losing out on that $14 billion contract, which will cover 70% of AT&T’s wireless traffic by 2026, Nokia secured a smaller deal in September to build a fiber network in the U.S. and now has locked in this second agreement for cloud-based voice core applications and network automation.
Raghav Sahgal, president of Nokia’s Cloud and Network Services division, emphasized the importance of the deal, highlighting it as a reinforcement of the longstanding partnership between the two companies. The upgraded core network will integrate new voice services, leveraging AI and machine learning to offer enhanced functionality.
The specific value of the deal was not disclosed, but the partnership is seen as key for Nokia, as it continues to strengthen its foothold in the North American telecoms market. The collaboration with AT&T will focus on optimizing network operations and enabling new services that meet the evolving needs of customers.
Nokia recently reported stronger-than-expected financial results for Q4, driven by growing demand for telecom equipment in North America and India, and it is optimistic about prospects for 2025. In an effort to tap into the AI boom, Nokia also acquired Infinera in a $2.3 billion deal last year, aiming to capitalize on investments in data centers, including the significant Stargate project.