Nokia flagged early progress in a strategic shift focused on grasping AI-related opportunities in its Q2 results, where it expressed confidence on securing a buyer for its Enterprise Campus Edge business and unveiled a deal to up US manufacturing.

The vendor announced the under review campus edge business unit, which includes part of its enterprise private networks offering, is being shunted into its discontinued operations accounting bracket alongside the fixed wireless access CPE business it has already agreed to sell to Inseego.

Nokia deems an agreement to sell the business “highly probable”.

The forecast sale is part of a strategic change at the company unveiled by Nokia CEO Justin Hotard in November 2025, which reshaped the company in an attempt to take advantage of the AI boom.

In its results statement today (23 July), Hotard said he is “encouraged by the execution and progress we have made in a short period of time” since the plan was announced.

He noted order intake from its AI and cloud division more than doubled year-on-year to €2.8 billion.

Nokia booked a net profit of €5 million, down 95%, on net sales which were up 8% to €4.8 billion.

Its profit figures were hit by €390 million in charges taken in the quarter to fund accelerated restructuring efforts and other one-off costs.

Nokia noted with these factors stripped out it would have booked a 64% increase in its bottom-line.   

Restructure
Nokia provided an update on ongoing restructuring projects.

It expects to spend a total of €800 million across 2026 on making the changes, some of which had been previously flagged.

Around €250 million relates to the concluding part of a programme commenced in 2023; €350 million are integration charges to simplify its business in China after taking full ownership of a JV there; and the remaining €200 million is going on “additional restructuring actions”, primarily in Europe.

On the latter, the vendor stated the actions were a “further step in simplifying Nokia’s operating model and allocating resources towards growth opportunities” without providing details.

US manufacturing
Alongside its numbers, Nokia announced a deal to buy NXP’s Chandler Semiconductor Fabrication campus in the US state of Arizona, subject to getting the regulatory nod.

The vendor explained it is part of long-term capacity planning and it would use the facility for Indium phosphide semiconductor production for optical components. With the purchase not expected to close until Q1 2029, it plans to lease some capacity at the site from early 2027.

Financial details of the deal were not disclosed.

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Nokia promised significant hikes in spectral efficiency over the next two years as it launched an AI-native RAN platform which relies heavily on Nvidia systems.

The AI-RAN platform is already capable of boosting spectral efficiency by 20% and Nokia stated gains of 50% and 100% would be delivered in 2027 and 2028, respectively.

It hailed the platform as “one of the most significant shifts in radio network architecture in decades”. It hopes to deliver pilot deployments by the end of the year and commercial availability in 2027.

The platform uses Nokia’s anyRAN software so operators running other network vendor’s equipment today can use it, but the bulk of the services available through Nvidia’s systems are reserved for those already using the Finnish provider’s AirScale range.

A GPU-based AirScale capacity plug-in is pitched “as the most efficient path forward”, for example. It brings Nvidia compute capabilities into current networks, “preserving existing” investments and offering the option to employ chips from Marvell Technology.

Nokia also launched a standalone AI-RAN node employing GPUs which can run on 4G and 5G networks, with forward compatibility to likely 6G infrastructure.

Various configurations are available comprising a one-node deployment, clusters and as part of a single logical base station.

GPUs also form the heart of a commercial off-the-shelf server available from Nokia’s partners which it stated would tackle any supply chain worries.

The vendor followed in rival Ericsson’s footsteps by unveiling a subscription-based model enabling operators to access software-based upgrades to equipment without swapping hardware.

Nokia president and CEO Justin Hotard said AI-RAN “makes the network intelligent” and would help operators maximise the capabilities of their current infrastructure.

Jensen Huang, founder and CEO of Nvidia, hailed the step as the dawn of a new era for the telecoms sector as the companies turn “RAN into a planet-scale AI computer”.

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Taiwan Mobile and Nokia expanded a contract for 5G kit with a view to pushing the operator’s move towards AI-native mobile network architecture.

The deal involves the supply of products from Nokia’s AirScale portfolio including next-generation baseband and radio systems, alongside software providing the operator’s network with an AI boost.

Nokia highlighted the radios and baseband units support improvements in throughput, spectrum efficiency and delivery of premium user experiences. On the software side, it pointed to an opportunity for real-time automation and predictive analysis to bolster operational efficiency.

The boost in network capacity and uplink delivered by the upgrade is also promoted as meeting the specific needs of AI applications.

Other benefits noted include use of AI for power management to cut energy consumption and traffic steering capabilities to up resilience.

Taiwan Mobile president Jamie Lin explained its collaboration with Nokia is key in a “strategy to build a high-performance, resilient and sustainable network”, which is the basis for a “Telco and Tech” push by the company.

Nokia head of RAN Mark Atkinson added the deal would help accelerate Taiwan Mobile’s “journey toward AI-native networks”, noting the equipment being supplied would set “the foundation for 5G-Advanced and beyond”.

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Google Cloud and Nokia outlined a plan to integrate agents made using Gemini AI models into the vendor’s network assurance platform, a move they promoted as aiding quick resolution of operator issues.

The pair asserted the six agents being created would provide dramatic gains for users of the Nokia Assurance Center.

In a joint statement, Nokia and Google Cloud pointed to the increasingly complex volume of data being generated by networks as causing issues for systems relying on manual troubleshooting, highlighting bottlenecks from an ever-escalating number of alerts.

“This partnership addresses these challenges by using agents to instantly process raw data, helping telecom providers distinguish critical infrastructure issues from background noise to accelerate repairs and protect revenue,” they explained.

The agents are said to be able to manage specific operational tasks or combine to solve more complex problems.

There are bots to analyse alerts; interpret performance metrics; investigate unusual behaviour; recommend remedies; create visual analytics; and one to manage communication between the others and interpret user intent.  

Google Cloud global telco market lead Sridhar Gollapudi said: “Agentic AI marks a fundamental shift in how telecommunications networks are managed, moving operators away from rigid templates to dynamic, goal-oriented automation”.

“By applying Gemini’s multimodal reasoning capabilities to complex data streams, this partnership helps operators to transition from manual workflows to a self-driving posture that lowers costs and optimises resources globally.”

Nokia SVP of Autonomous Networks Vivek Jaiswal added: “The AI era demands a new kind of network, one that is programmable, AI-native and able to operate at machine speed”.

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Defence company KNDS enlisted Nokia to provide 5G capabilities intended to boost communications for military personnel and enable autonomous war machines.

The contract for Nokia Defense involves using its Banshee portfolio to close gaps in battlefield communications.

Nokia stated Banshee systems would be integrated with a KNDS armoured vehicle for infantry to deliver a communications set-up described by the Finnish vendor as fit for a “transition from armoured vehicles into complex mission environments”.

It explained the integration would enable “more responsive and coordinated operations”, highlighting modern warfare requirements spanning “continuous communication across many manned and unmanned systems”.

The connectivity gap targeted involves communications with personnel once they are outside their vehicle. Nokia explained 5G would tackle this, along with laying the groundwork for the data exchange required to run robotic systems.

Ari Kynaslahti, head of Nokia Defense, said “reliable, real-time data” is now a must for military operations, a view echoed by KNDS France CEO Nicolas Groult, who said “connectivity is becoming a core enabler of future land operations”.

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Nokia and Lenovo agreed another multi-year patent cross-licensing deal to maintain a harmony found in 2021 when they put their litigious differences aside.

The companies emphasised their commitment to licensing their respective technologies on fair, reasonable and non-discriminatory terms.

They were tighter lipped regarding the exact details of their latest agreement, though Nokia chief licensing officer Susanna Martikainen said it is an “amicable” arrangement which the company is happy to have come to.

Taylor Ludlam, VP, deputy general counsel and chief IP officer at Lenovo, pointed to its meaningful contribution to technology development and emphasised the benefits of allowing other companies to access it.

“Effective IP licensing helps companies innovate faster, meet industry standards and bring new products to customers more efficiently”.

A two-year legal fight between the companies was brought to a close in 2021 when they agreed an initial cross-licensing deal, one which Nokia stated at the time involved Lenovo making a “net balancing payment”.

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A MEO desenvolve e disponibiliza APIs standard de rede móvel 5G para autenticação aplicacional, prevenção de fraude e proteção de transações críticas. Esta aposta conta com a parceria da Nokia, Infobip e Aduna.

The post MEO aposta em APIs de rede 5G para reforçar autenticação e prevenção de fraude em setores críticos appeared first on Tek Notícias.

Nokia highlighted a major expansion of its advanced test and packaging operations in the US state of Pennsylvania, in a move designed to scale production of optical networking technologies which underpin AI infrastructure.

The Finnish vendor stated the investment will increase the facility’s production capacity by up to 10 times its current level, with the extended capability expected to be commercially available by the end of Q3.

Nokia said the expansion in Allentown, Pennsylvania, is expected to nearly double the workforce there to more than 500 across engineering, manufacturing and R&D, with a projected economic impact of more than $500 million over the next five years.

It noted the Allentown site is one of only a few facilities in the US providing advanced test and packaging of photonic chips into optical modules for use in AI and telecoms infrastructure.

Nokia stated less than 2% of global semiconductor advanced test and packaging currently takes place in the US, making domestic capacity a strategic priority. The company claimed its optical technologies can reduce energy usage in AI communications by as much as 75%.

The expansion is part of Nokia’s multi-year plan to invest $4 billion in research and manufacturing in the US for AI-ready network connectivity.

The Allentown project involves approximately $30 million in total investment, including around $4 million in assistance from the state of Pennsylvania and approximately $10 million in federal CHIPS and Science Act tax credit.

Nokia CEO Justin Hotard said the “AI supercycle” is fundamentally reshaping network and infrastructure requirements and noted the Allentown expansion was a direct investment in that future.

“It also reflects the strong partnership between Nokia, the United States, and the Commonwealth of Pennsylvania to support advanced manufacturing, create jobs, and strengthen US technology leadership and global competitiveness,” he said.

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Nokia positioned the forthcoming addition of an agentic AI framework into its network services platform (NSP) as giving operators the ability to adopt agents using trusted data within secure boundaries.

The vendor stated the move would provide the means for customers to introduce AI operations for IP networks, with agents able to take guided, explainable actions based on real network data.

Commercial availability of the functionality is expected by the end of the year.

Nokia’s NSP is its management and automation platform for multi-vendor IP networks. It asserted the addition of the AI framework supports communication with external agents and would aid operators on their routes towards employing fully automated networks.

The company explained “while AI has the potential to transform network operations, many operators have remained cautious due to concerns around explainability, trust and risk in production environments”.

Its approach to ease these concerns is by “embedding agentic AI capabilities directly into the platform that already serves as the authoritative controller for IP networks”.

The vendor announced the first agent able to use the framework is a troubleshooting bot designed to help operators identify the root causes of problems faster and resolve complex issues.

Nokia VP and general manager for IP network automation software Sasa Nijemcevic said the move would “have a major impact on the way operators manage their networks, and will enable them to enhance their operations significantly and accelerate their journey toward autonomous networks with focus on solving real operational problems”.

“This is an incremental, pragmatic step toward AI‑native networks,” he added.

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Nokia teamed up with Indosat Ooredoo Hutchison to modernise the operator’s mobile network with advanced 5G RAN capabilities, as part of broader ambitions around AI-enabled services.

Nokia stated it will support the rollout of low- and mid-band 5G in the country to help build “AI-ready” networks, serving Indosat’s customers nationwide.

The Finnish vendor pitched the partnership as “more than a network upgrade”, touting a commitment to enhancing digital experiences including immersive entertainment, gaming and everyday digital activities. It also pointed to advanced consumer and enterprise use cases because of a better network, spanning several key sectors.

The duo explained the network modernisation push will lay the infrastructure foundations for the country’s next phase of growth, with a shared mission “to turn connectivity into a platform for intelligence”.

This will be done through a deployment of AI-RAN, working with Nvidia to hold field trials in Indonesia by the end of 2026. It will also support Nokia’s work on new AI algorithms designed to improve spectral efficiency on Nvidia AI-RAN platforms.

Indosat added combining centralised AI factories and distributed AI-RAN infrastructure will advance its AI grid, creating a unified intelligence layer that distributes both AI and connectivity to millions.

Justin Hotard, CEO of Nokia, said together with Indosat and Nvidia, it is working to build a network that expands 5G, enables new AI driven services and creates long-term value.

“This partnership reflects a broader shift in the industry, as operators invest in networks that deliver high performance at scale while supporting greater efficiency, new business models and digital growth.”

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