Nokia has entered into a new agreement with AT&T to develop a fibre network throughout the United States. This strategic move comes after Nokia lost a significant telecoms network contract to its rival Ericsson. This deal saw the Swedish company securing a partnership to manage 70% of AT&T\u2019s wireless traffic by late 2026. Despite this setback, Nokia is looking to bolster its position in the U.S. market through its new fibre deal with AT&T.<\/p>\n
The Finnish network equipment maker did not disclose the financial terms of the agreement but described it as \u201ca significant milestone\u201d that will enhance broadband access for millions of users in the U.S. This partnership is expected to support AT&T\u2019s extensive fibre network, which had passed 27.8 million total fibre locations as of the second quarter of 2024. The deal aligns with Nokia\u2019s strategy to capitalize on the growing fibre market in the U.S., especially following AT&T\u2019s $14 billion, five-year agreement with Ericsson.<\/p>\n
Nokia\u2019s CEO, Pekka Lundmark, has highlighted the improving fibre market in the U.S. as a key factor in the company\u2019s growth strategy. In July, despite a 32% drop in profit, Lundmark forecasted that net sales would significantly accelerate in the second half of the year, driven by the U.S. market\u2019s increasing demand for fibre networks and a $42 billion government initiative to expand citizens\u2019 access to high-speed broadband.<\/p>\n
Furthermore, the fibre deal with AT&T is \u201cBuild America, Buy America-compliant,\u201d ensuring it meets the requirements for U.S. government funding. This compliance is essential as the U.S. government increases its investment in infrastructure projects. Nokia\u2019s recent acquisition of U.S. optical networking gear maker Infinera, in a $2.3 billion deal, further underscores the company\u2019s commitment to expanding its footprint in the U.S. market, especially in light of the growing demand for data centres fueled by the rise of artificial intelligence.<\/p>\n
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Nokia\u2019s latest fibre deal with AT&T marks a significant milestone for the Finnish company, aiming to boost broadband access across the U.S. This agreement comes as Nokia seeks new growth avenues in the fibre market after losing a major network contract to Ericsson, reflecting its strategic pivot towards enhancing its presence in the U.S.<\/p>\n","protected":false},"author":266,"featured_media":49946,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[4122,16123,16125,12367,16121,16128,16129,9292,16124,16126,16127,16122],"class_list":["post-49945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","tag-att","tag-broadband-access","tag-build-america-buy-america","tag-ericsson","tag-fibre-network","tag-infinera","tag-network-equipment","tag-nokia","tag-pekka-lundmark","tag-telecom-infrastructure","tag-u-s-government-funding","tag-u-s-telecom"],"reading_time":"2 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/49945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/266"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=49945"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/49945\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/49946"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=49945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=49945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=49945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}