Nokia Deepens AI and 5G Partnerships with TIM Brasil and Deutsche Telekom

Expansion of Strategic Partnerships and AI Initiatives

Overview of New Deals and AI Adoption

March 2 (Reuters) - Nokia said on Monday it was expanding partnerships with TIM Brasil and Deutsche Telekom, as the Finnish 5G gear maker seeks to capitalise on adoption of AI-based technologies worldwide.

These deals, which follow last week's announcement of a multi-year contract with Telefonica to provide network solutions for data centres across Spain, highlight how artificial intelligence enabling technology is creating new revenue streams for Nokia.

Details of TIM Brasil Partnership

Expansion Across Brazil

It will expand the network partnership with TIM Brasil—which previously covered 5G network modernisation and its preparation for AI-based services in the state of Sao Paulo—to a further 14 states across four regions, reaching around 42% of Brazil's population.

AI-Driven Services for Business Customers

The partnership enables TIM Brasil to offer AI-driven services to business customers using Nvidia's AI-RAN platforms, Nokia said in a statement seen by Reuters ahead of its scheduled publication.

Collaboration with Deutsche Telekom

Advancement of Cloud-Based and AI-Native RAN Technology

In an earlier statement on Monday, Nokia and Deutsche Telekom said they would expand their collaboration to speed up development of cloud-based, disaggregated and AI-native radio access network (RAN) technology.

Impact on Future Mobile Networks

This will lay down building blocks for programmable and automated mobile networks that are simpler, faster and better optimised for future connectivity needs as a global AI boom reshapes the industry, they said.

Industry Context and Nokia's Strategic Moves

Global Race for 5G and AI Integration

These contracts reflect telecom operators' global race to upgrade their networks to 5G in order to enable broader AI adoption, creating a significant market for equipment providers like Nokia and Ericsson. 

Recent Acquisitions and Investments

Last year, Nokia acquired U.S. optical networking firm Infinera, aiming to tap into the AI boom, a deal that was followed by a $1 billion equity investment from chipmaker Nvidia, which bought a 2.9% stake in the Finnish group. 

Nokia's Restructuring and Future Outlook

The new deals fit into one of Nokia's largest restructuring efforts since selling its iconic mobile phone business more than a decade ago, as it bets on AI and data centre demand to offset weak spending and contract losses in the 5G field.

Reporting and Editorial Credits

(Reporting by Agnieszka Olenska in Gdansk, Editing by Milla Nissi-Prussak)