As a tech journalist, Zul focuses on topics including cloud computing, cybersecurity, and disruptive technology in the enterprise industry. He has expertise in moderating webinars and presenting content on video, in addition to having a background in networking technology.
Nokia and AT&T have reached an agreement to construct a fibre network in the US. The announcement comes after Nokia lost a major deal with AT&T in December, when the US operator chose Nokia’s rival, Ericsson, to build a telecom network.
According to the announced plans, with Ericsson’s help, AT&T aims to cover 70% of the cellular wireless traffic in the American telecom market by the end of 2026.
After losing the $14 billion five-year contract to Ericsson, Nokia is now focusing on new opportunities in fibre networking. In this context, AT&T’s customer base and fixed network across the US enable Nokia’s fibre solutions to increase the company’s network capacity and improve the overall quality of its broadband services.
The services will be based on Nokia’s Lightspan platform, which can support a wide variety of next-generation PON technology variants, from 10G to 100G. As a result, AT&T should experience increased flexibility in terms of its network optimisation. Also, Nokia’s Altiplano Access Controller is anticipated to automate AT&T’s network and service operations.
According to Chris Sambar, Head of Network at AT&T, collaborative investments in fibre expansion are crucial for providing foundational services to customers. He mentioned that this buildout will improve broadband access across the US and pave the way for future digital innovations.
Sandy Motley, President of Fixed Networks at Nokia, highlighted that connecting more people and businesses is at the core of this partnership. Nokia’s fibre solution, which supports several PON technologies on a single platform, can assist operators like AT&T in scaling up their existing and future fibre broadband networks.
Nokia described the agreement as not only a significant milestone for the company but also a major step forward for millions of Americans who will benefit from enhanced broadband access. The deal will underpin AT&T’s extensive fibre network, which will have reached 27.8 million total fibre locations by the end of Q2 2024.
The recent financial report from Nokia demonstrated a 32% decrease in profit. However, Pekka Lundmark, CEO of Nokia, is confident that the firm’s performance will improve in the second half of the year. One reason is the improvement in the US fibre market and the $42 billion program by the US government which aims to provide high-speed broadband.
Additionally, Nokia’s fibre deal with AT&T complies with the “Build America, Buy America” guidelines, aligning with US government funding requirements.
In June, Nokia also acquired Infinera, a US optical networking gear maker, for $2.3 billion, aiming to capitalise on the AI-driven surge in data centre investments.
