AT&T and Nokia Sign Fibre Network Agreement

HELSINKI (Reuters) – U.S. telecoms operator AT&T (NYSE:T) and Finnish network equipment maker Nokia (HE:NOKIA) have signed an agreement to build a fibre network in the U.S., as reported on Tuesday.

The deal follows Nokia losing a significant contract to build a telecoms network for AT&T, which was awarded to Swedish rival Ericsson (BS:ERICAs) in December. This new network is expected to cover 70% of AT&T’s wireless traffic in the U.S. by late 2026.

Nokia is looking to expand its growth in fibre following AT&T’s $14 billion five-year contract with Ericsson.

Although Nokia did not disclose the financial details of this new five-year fibre agreement, the company referred to it as “a significant milestone”. Nokia emphasized that the deal would enhance broadband access for millions in the U.S, while also supporting AT&T’s broad fibre network, which reached 27.8 million locations as of Q2 2024.

In July, Nokia reported a 32% decline in profits, but CEO Pekka Lundmark anticipated that net sales would surge in the latter half of the year, citing an improving fibre market and a $42 billion U.S. government programme aimed at enhancing access to high-speed internet.

Nokia mentioned that the fibre deal is “Build America, Buy America-compliant”, fulfilling the conditions for U.S. government funding.

In June, Nokia announced the acquisition of U.S. optical networking firm Infinera (NASDAQ:INFN) for $2.3 billion, aiming to capitalize on the significant investments in data centres driven by the growth of artificial intelligence.