The Finnish 5G equipment manufacturer said on Monday it is broadening its partnership with TIM Brasil and deepening collaboration with Deutsche Telekom, as operators race to upgrade infrastructure capable of supporting AI-driven services.
The announcements follow last week’s multi-year agreement with Telefonica to supply network solutions for data centres across Spain, underscoring how AI-enabling technologies are opening new revenue streams for telecom equipment providers.
Expansion in Brazil
In Brazil, Nokia will extend its existing network partnership with TIM Brasil—previously focused on 5G modernisation and AI-readiness in São Paulo state—to 14 additional states across four regions. The expanded footprint will cover areas representing approximately 42% of Brazil’s population.
The upgraded infrastructure will allow TIM Brasil to roll out AI-driven services to enterprise customers using AI-powered radio access network platforms developed by Nvidia. Nokia said the collaboration will strengthen the operator’s ability to deliver advanced business applications built on next-generation connectivity.
Deepened Cooperation in Germany
Separately, Nokia and Deutsche Telekom announced plans to intensify their joint efforts to accelerate development of cloud-based, disaggregated and AI-native radio access network (RAN) technology.
The companies said the enhanced cooperation will establish foundational building blocks for programmable and automated mobile networks—systems designed to be more flexible, efficient and responsive to evolving connectivity demands. As AI workloads expand globally, telecom operators are seeking infrastructure that can dynamically adapt to shifting traffic patterns and new digital services.
Strategic Shift Toward AI and Data Centres
The new agreements come amid a broader transformation at Nokia, which is pursuing one of its most significant restructuring efforts since divesting its mobile handset business more than a decade ago. The company is repositioning itself to benefit from rising demand for AI-ready networks and data centre connectivity, offsetting weaker spending cycles and intensified competition in the traditional 5G equipment market.
In 2024, Nokia acquired U.S.-based optical networking firm Infinera to strengthen its data centre and high-capacity transport capabilities. The deal was followed by a $1 billion equity investment from Nvidia, which acquired a 2.9% stake in the Finnish group.
The latest partnerships reflect a broader industry push, as telecom operators worldwide upgrade to advanced 5G architectures to enable AI applications across sectors ranging from manufacturing to cloud computing. For equipment vendors such as Nokia and Sweden’s Ericsson, the AI-driven network transition represents a critical growth opportunity in an increasingly competitive market.