Nokia announced a three‑year contract with Telecom Italia (TIM) to deploy its AirScale Radio Access Network across new regions, including rural areas, as part of TIM’s effort to close the digital divide. The agreement covers the installation of Habrok 32 Massive MIMO radios, Pandion FDD multi‑band remote radio heads, and Lodos baseband cards, and extends the use of Nokia’s AI‑powered MantaRay SON for network optimization and energy efficiency.
The deal aligns with Nokia’s strategic pivot toward high‑growth non‑CSP markets and its focus on AI‑enabled infrastructure. By integrating MantaRay SON, Nokia will enable automated network operations that reduce operational costs and improve service quality, positioning the company to capture a larger share of the European 5G market where competition from Ericsson and Huawei is intense.
Financially, the contract is expected to generate incremental revenue of several hundred million euros over the next three years, complementing Nokia’s Q3 2025 results that showed a 12% revenue increase driven by Optical Networks but also highlighted margin pressure from an unfavorable product mix. The TIM deal is therefore a key revenue driver that can help offset margin compression in other segments while reinforcing Nokia’s AI‑centric growth narrative.
The tender process was highly competitive, with Ericsson and Huawei also bidding for the contract. Nokia’s win demonstrates its ability to deliver a comprehensive, AI‑driven solution that meets TIM’s performance and sustainability targets, giving it a competitive edge in a mature market where operators are increasingly prioritizing energy efficiency and automation.
Pietro Labriola, CEO of TIM, said the partnership “strengthens TIM’s leadership in building the next generation of 5G networks, enabling faster, smarter, and more sustainable connectivity across Italy.” Justin Hotard, President and CEO of Nokia, added that the deal “shows how a trusted 5G network can unlock Italy’s next phase of digital transformation, building a foundation for new AI‑driven services.”
The agreement not only expands coverage but also supports TIM’s broader strategy to accelerate industrial transformation and sustainable growth, while giving Nokia a foothold in a mature European market and reinforcing its AI‑enabled infrastructure strategy.
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