Nokia Oyj announced a five‑year extension of its Radio Access Network (RAN) partnership with Telefónica Germany, keeping the collaboration in place through 2030. The agreement will see Nokia supply its energy‑efficient, AI‑ready AirScale portfolio—including Habrok Massive MIMO radios, Pandion multi‑band remote radio heads, and AirScale small‑cell solutions—to modernise Telefónica’s nationwide 5G network.
The deal also incorporates Nokia’s MantaRay NM network‑management platform, which delivers AI‑powered optimisation and automation across core, radio, and transport layers. Telefónica’s objective is to accelerate its 5G rollout and reach automation level 4, a milestone that the MantaRay platform is designed to support.
Strategically, the extension reinforces Nokia’s shift toward high‑growth, non‑CSP customers and secures a long‑term revenue stream in the German market. The partnership underscores Nokia’s focus on AI‑enabled, cloud‑native infrastructure, positioning the company to capture a larger share of the evolving 5G ecosystem.
Nokia’s Q3 2025 results provide context for the deal. Revenue rose to $5.61 billion, up 11.6% year‑over‑year, and earnings per share reached $0.07, beating the consensus estimate of $0.06. The growth was driven by strong demand in core network segments, while currency headwinds prompted Nokia to lower its 2025 operating‑profit guidance in July. The contract extension adds a predictable revenue stream that supports the company’s broader investment in IP networks and AI‑driven solutions.
Market reaction to Nokia’s late‑November announcements was largely shaped by the company’s restructuring into two core divisions, its new AI strategy, and a $4 billion U.S. investment plan. The Telefónica contract did not trigger an immediate market move, but it contributes to long‑term confidence in Nokia’s AI‑centric trajectory.
Management comments highlight the partnership’s significance. Matthias Sauder, director of networks at O2 Telefónica, said the extension “reflects our shared commitment to advancing 5G technology and creating a more connected and sustainable Germany.” CEO Justin Hotard added that Nokia is proud to “help Telefónica strengthen performance, efficiency and customer experience across its 5G network, positioning it for long‑term competitiveness as the AI supercycle takes hold.”
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