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Nokia Corporation NOK recently revealed that it has been awarded a multi-year, multi-billion deal extension by Bharti Airtel (Airtel) to enhance and expand 4G and 5G network infrastructure across key regions of India, leveraging its advanced connectivity and technological solutions.
Digging Deep Into the NOK-Airtel Deal
As part of the agreement, Nokia will deploy equipment from its state-of-the-art industry-leading 5G AirScale portfolio, comprising baseband units and its latest generation of Massive Multiple-Input Multiple-Output (MIMO) radios. This portfolio integrates Nokia’s energy-efficient ReefShark System-on-Chip technology to deliver faster speeds, lower latency and greater capacity that will likely help Airtel meet growing demands, while the Massive MIMO radio supports the diverse deployment and operational needs of mobile network operators.
Additionally, Airtel will benefit from Nokia's MantaRay network management solution, renowned for its network optimization and automation capabilities. This solution features self-configuring modules that enhance network performance and efficiency, tailored to meet specific operational challenges and growing complexity. The AI-based automation will also facilitate better monitoring and management of the network with fewer people to ensure seamless equipment installation and superior performance.
Will This Deal Extension Drive NOK Shares?
With the emergence of the smartphone market and subsequent usage of mobile broadband, user demand for coverage speed and quality has recently increased. Further, to maintain superior performance as traffic increases, there is also a continuous need for network tuning and optimization. The company’s expertise in mission-critical networks is well-established, with deployments across more than 2,600 leading enterprise customers in the transportation, energy, manufacturing, webscale and public sector segments worldwide.
Nokia has been a key partner to Airtel for more than two decades, helping the company build its 2G, 3G, 4G, and now 5G networks. Their partnership has recently reached a new milestone with the launch of the Green 5G Initiative, aimed at enhancing energy efficiency and reducing carbon emissions in alignment with Airtel’s sustainability goals. This agreement further strengthens their long-standing collaboration, highlighting both companies' shared commitment to innovation and the sustainable growth of network infrastructure in India.
These advancements are likely to propel the stock with incremental revenue generation and inducement of similar deals from other carriers in the future. The deal is also expected to strengthen Nokia’s position as a leading telecommunications equipment provider in India.