AT&T and Nokia forge new fibre network deal
The fibre network deal and strategic acquisitions underscore Nokia’s efforts to navigate a competitive telecom landscape and leverage market conditions and government support.
AT&T and Nokia have entered into a new agreement to develop a fibre network in the US, marking a strategic move for Nokia following a recent setback. This deal comes after AT&T awarded a major network contract to Swedish competitor Ericsson in December, a project set to cover 70% of its US wireless traffic by 2026. Despite this loss, Nokia’s new five-year fibre network deal is seen as a significant milestone and is expected to enhance broadband access for millions of Americans.
Although the financial details of the fibre deal were not disclosed, Nokia emphasised its importance in expanding broadband infrastructure and supporting AT&T’s extensive fibre network, which reached 27.8 million locations by mid-2024. The deal also aligns with US government requirements for funding compliance.
Nokia, which recently experienced a 32% drop in profit, is optimistic about growth in the fibre sector. The company is poised to benefit from a $42 billion US government initiative aimed at increasing high-speed broadband access. Additionally, Nokia’s recent acquisition of Infinera for $2.3 billion highlights its commitment to capitalising on the surge in data centre investments driven by advancements in AI.
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