Nokia pivots to Nvidia-backed AI radio access networks for India | Company News

What are the top strategic priorities for Nokia over the next one to three years, particularly from an India standpoint?

 India is experiencing a massive AI supercycle. The 5G data consumption has grown by 70 per cent, with per-user consumption reaching 31 GB per month, which is unheard-of data volume even before full-scale AI adoption. To address this, we’re pivoting our strategy to AI-RAN and software-defined radio networks, security and connectivity with hyperscalers. We are introducing software-defined radio solutions that allow Communication Service Providers (CSPs) to leverage commercial off-the-shelf (COTS) hardware. These solutions currently yield a 20 per cent gain in spectral efficiency, with targets of 50 per cent by next year and double current efficiency by 2028. As networks become more complex, securing connectivity at scale is critical. Because Nokia offers an end-to-end portfolio – spanning radio, IP (internet protocol) optics, autonomous networks, and core — we can monitor and secure traffic from call initiation to termination. Third is hyperscaler and data centre connectivity, which is expanding rapidly in India. We are providing high-speed connectivity with reduced physical footprints to lower power consumption, aiding targets to achieve net-zero carbon emissions by 2030. Additionally, we are deploying optical innovations like hollow-core fibre with our DWDM (Dense Wavelength Division Multiplexing) technology to significantly reduce latency for mission-critical applications. Also, automation at scale, which lowers costs, and dynamically serves varied requirements across hyperscalers, enterprises, and consumers.

 What is the scope of Nokia’s partnership with Nvidia, and how does it apply to India?

 Nvidia’s $1 billion investment in Nokia supports a global co-innovation effort around AI-RAN. We are integrating Nvidia’s pluggable GPUs (graphics procession units) into Nokia’s baseband units and leveraging GPU capacity on COTS hardware. We’re combining Nokia’s telecom expertise with Nvidia’s silicon R&D (research and development) optimising GPU cost structures for operators. Beyond baseband processing, edge GPUs can double up as localised micro-data centres for multi-vendor edge use-cases. Global trials with 4 to 5 operators are underway. We are bringing it to India as well. We are in discussion, so we might even do certain trials in India.

Operator capex is plateauing into a capacity-driven phase. Where will Nokia find growth opportunities under these market conditions?

Industry capex naturally moves in a sine wave. Even during capacity-driven phases, growth comes from key structural imperatives: Including network automation is essential regardless of capex cycles; replacing legacy hardware with energy-efficient, low-footprint solutions brings operational cost savings to operators; and data centre buildouts and enterprise demands create strong recurring revenue streams outside traditional consumer radio.

Does offering an end-to-end network portfolio help you capture market share directly from competitors?

The primary goal of an end-to-end portfolio is value creation rather than explicitly displacing competitors. Adding deep technical value naturally expands market share. Growth is driven by maximising value for existing communication service provider (CSP) clients and capturing emerging opportunities in mission-critical private networks (e.g., airports, emergency services, logistics, and mining).

                Will private networks become a mainstream revenue driver in India?

Private networks will not replace main CSP streams, but they form a high-growth fourth pillar alongside CSPs, hyperscalers, and fiber infrastructure. While adoption in India was initially delayed by spectrum allocation models – where spectrum assets largely remain with operators – operators are now actively seeking new B2B (business to business) revenue streams. Lower-latency, compact, and cost-effective solutions are unlocking commercial use cases across logistics hubs and airports.

What is the current status of manufacturing and R&D operations in India?

Nokia maintains a substantial operational footprint in India. The manufacturing facility in Chennai exports 40 per cent of its total output globally, spanning radio and backhaul equipment. India houses major software R&D facilities, global support centres, global network operations centres (NOCs), and localised equipment repair facilities to shorten service turnaround times.

How does the Indian market contribute to Nokia’s global strategic and revenue outlook?

Serving an end-user base of 800 million to 1 billion subscribers in India provides unmatched operational scale. Beyond direct business contribution, India serves as a vital proving ground and R&D hub. The extreme diversity of use-cases – from dense consumer environments to enterprises and hyperscalers – generates operational insights and software innovations that Nokia deploys globally.

How is Nokia adapting to supply chain volatility and component price fluctuations?

As a global entity operating at scale, Nokia maintains built-in supply chain redundancies across its radio, IP, optical, and core business units. End-to-end control over hardware and software development helps insulate production schedules from localised component price surges.