Nokia Oyj announced that Dutch telecom operator KPN has selected it to deploy a nationwide 800‑Gbit‑per‑second IP and optical network under the FabriQ initiative. The new architecture will lift KPN’s core capacity from 48 Tbps to more than 216 Tbps, enabling services of over 10 Gbps per customer and supporting the operator’s goal of high‑speed broadband for millions of users.
The deployment will use Nokia’s FP5‑powered IP routers and PSE‑6‑based optical systems, and it will be the first large‑scale brownfield implementation of segment‑routing over IPv6 (SRv6) in Europe. The design emphasizes resilience, automation, and energy efficiency, positioning KPN as the Netherlands’ leading digital service provider while giving Nokia a high‑profile platform to showcase its 800‑Gbit capabilities.
Strategically, the win is a milestone for Nokia’s AI‑infrastructure strategy. It adds a major European customer to a growing list of hyperscale and enterprise deployments, strengthens Nokia’s competitive position against Cisco and Arista, and reinforces the company’s narrative of transforming from a traditional telecom equipment supplier to a secular AI‑driven infrastructure play.
Nokia’s Q3 2025 results provide context for the deal. The company reported €4.83 billion in net sales, up 12 % year‑over‑year, driven by 11 % growth in Network Infrastructure and 19 % growth in Optical Networks. Comparable gross margin rose to 44.2 % and operating margin to 9.0 %, reflecting a mix shift toward higher‑margin AI and cloud customers. Management highlighted the importance of AI and cloud demand, noting that “Nokia changed the world once by connecting people and will again by connecting intelligence.” The KPN deployment aligns with this growth trajectory and supports Nokia’s upward revision of full‑year operating profit guidance.
Investors reacted positively to Nokia’s Q3 2025 earnings, citing strong demand from AI and data‑center customers, the 19 % year‑over‑year growth in Optical Networks, and the company’s revised profit outlook. The KPN win reinforces confidence in Nokia’s ability to secure large‑scale deployments and accelerate its AI‑ready infrastructure strategy.
KPN has committed more than €5 billion to network investment through 2030, focusing on fiber‑optic expansion, 5G, AI, and cybersecurity. While the financial value of the Nokia contract was not disclosed, the deployment is expected to support the operator’s AI and cloud ambitions over the coming years.
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