Nokia has signed an agreement with U.S. telecom giant AT&T to develop a fiber network across the United States, the Finnish network equipment manufacturer announced on Tuesday. This partnership comes in the wake of Nokia losing a significant wireless network contract to its Swedish competitor Ericsson, which was selected by AT&T last December to construct a telecom network covering 70% of its wireless traffic in the U.S. by the end of 2026.
Following the $14 billion five-year deal between AT&T and Ericsson, Nokia is now turning its focus to growth opportunities in the fiber sector. While Nokia did not disclose the financial specifics of the new five-year fiber deal, the company described it as “a significant milestone.” The agreement is expected to enhance broadband access for millions of Americans, bolstering AT&T’s fiber network, which as of the second quarter of 2024, had reached 27.8 million fiber locations.
Nokia’s CEO, Pekka Lundmark, had previously predicted a surge in net sales for the latter half of the year, despite a reported 32% drop in profit in July. He highlighted an improving fiber market in the U.S. and the impact of a $42 billion federal program aimed at expanding high-speed broadband access as key factors for growth.
The new fiber deal with AT&T is in line with the “Build America, Buy America” requirements, ensuring compliance with U.S. government funding guidelines. This deal follows Nokia’s recent acquisition of U.S. optical networking company Infinera for $2.3 billion, a strategic move to capitalize on the substantial investments being made in data centers to support the growth of artificial intelligence.
