Nokia’s Strategic Expansion in India: A Catalyst for Long-Term Growth in 5G and Network Infrastructure

India’s telecom sector is undergoing a seismic transformation, driven by the rapid adoption of 5G, government-led digitalization, and surging demand for high-speed connectivity. At the forefront of this evolution is Nokia, a company leveraging its technological expertise and strategic partnerships to solidify its position in one of the world’s most dynamic markets. For investors, Nokia’s India operations present a compelling case: a blend of infrastructure innovation, ESG alignment, and alignment with macroeconomic tailwinds that could drive long-term value.

A Market on the Cusp of Hypergrowth

India’s telecom market is projected to grow from $48.61 billion in 2024 to $114.47 billion by 2033, fueled by a 5G subscriber base expected to balloon from 290 million in 2024 to 770 million by 2028 [1]. This expansion is underpinned by government policies such as the National Digital Communications Policy and the BharatNet project, which aim to bridge the digital divide and accelerate broadband adoption [2]. Nokia’s focus on fiber-based 5G infrastructure, including 25G-100G Passive Optical Network (PON) solutions, positions it to capitalize on this demand. These technologies are critical for supporting mobile anyhaul and fixed broadband, areas where India’s operators are aggressively investing [3].

Strategic Partnerships and Technological Edge

Nokia’s partnerships with Indian ISPs like Netplus and Vortex Group exemplify its ability to scale infrastructure while addressing local needs. For instance, its deployment of 400G routing and software-defined access network (SDAN) platforms for Netplus has enabled high-speed broadband and IPTV services for nearly two million users in northern India [4]. The integration of the Altiplano Access Controller, which automates network diagnostics, reduces service delivery times, and enhances user experience, underscores Nokia’s commitment to operational efficiency [5].

Meanwhile, Nokia’s “Green 5G” initiative with Bharti Airtel has reduced annual CO2 emissions by 143,413 metric tons through AI/ML-driven zero-watt operations and solar-powered systems at 25,000 sites [6]. This sustainability focus aligns with India’s ESG goals and Nokia’s global net-zero target of 2040, making it an attractive partner for operators prioritizing environmental responsibility.

Navigating Challenges with Resilience

Despite a 6% decline in India’s net sales in Q2 2025 due to project timing issues, Nokia’s first-half performance showed a 30% year-on-year increase, highlighting its resilience [7]. The company’s strategic shift toward Network Infrastructure and AI-enabled solutions—bolstered by the acquisition of Infinera—has strengthened its growth trajectory. Optical networking, a key focus area, is critical for meeting the surging demand for data center connectivity and AI infrastructure [8].

Nokia’s expansion of its R&D center in India and commitment to training 300 students annually in 5G and AI/ML applications further reinforce its long-term engagement with the market [9]. These initiatives align with India’s Atmanirbhar Bharat (self-reliant India) vision, ensuring a skilled workforce to support future infrastructure demands.

A Calculated Path to Dominance

While challenges such as high infrastructure costs and slow ROI for operators persist, Nokia’s financial resilience and technological agility position it to outperform competitors. Its partnerships with global players like AT&T and T-Mobile, combined with local collaborations, expand its market reach and diversify revenue streams [10]. Moreover, the company’s focus on AI-driven infrastructure—such as its ReefShark System-on-Chip—enables operators to optimize network performance and reduce operational costs [11].

Conclusion

Nokia’s strategic expansion in India is not merely a response to market trends but a calculated bet on the future of connectivity. By aligning its technological roadmap with India’s 5G ambitions and ESG priorities, the company is well-positioned to benefit from the sector’s projected 15% CAGR through 2025 [12]. For investors, this represents a rare opportunity to back a company that is both a beneficiary of and a catalyst for India’s telecom modernization boom.

Source:
[1] India Telecom Market Size, Trends and Top Key Players [https://www.renub.com/india-telecom-market-p.php]
[2] India's Telecom Industry Growth – A Global Leader in ... [https://www.ibef.org/industry/telecommunications]
[3] Nokia's Strategic Move in Broadband Infrastructure [https://www.ainvest.com/news/nokia-strategic-move-broadband-infrastructure-unlocking-long-term-growth-5g-fiber-deployment-suppliers-vortex-group-2509/]
[4] Nokia's Strategic Expansion in India's IPTV and Broadband Market [https://www.ainvest.com/news/nokia-strategic-expansion-india-iptv-broadband-market-dual-lens-growth-esg-alignment-2508/]
[5] Nokia's Strategic Expansion in India's IPTV and Broadband Market [https://www.ainvest.com/news/nokia-strategic-expansion-india-iptv-broadband-market-dual-lens-growth-esg-alignment-2508/]
[6] Nokia's Strategic Expansion in India's IPTV and Broadband Market [https://www.ainvest.com/news/nokia-strategic-expansion-india-iptv-broadband-market-dual-lens-growth-esg-alignment-2508/]
[7] Nokia Q2 2025: Revenue rises 2% despite decline in telecom capex [https://telecomlead.com/telecom-equipment/nokia-q2-2025-revenue-rises-2-despite-decline-in-telecom-capex-121872]
[8] Nokia Shifts Focus to AI and Network Infrastructure [https://tecknexus.com/nokia-shifts-focus-to-ai-and-network-infrastructure/]
[9] Nokia to Expand Research and Development Centre in India [https://m.economictimes.com/industry/telecom/telecom-news/nokia-to-expand-research-and-development-centre-in-india/articleshow/123234915.cms]
[10] Nokia's Strategic Move in Broadband Infrastructure [https://www.ainvest.com/news/nokia-strategic-move-broadband-infrastructure-unlocking-long-term-growth-5g-fiber-deployment-suppliers-vortex-group-2509/]
[11] Nokia's Strategic Expansion in India's IPTV and Broadband Market [https://www.ainvest.com/news/nokia-strategic-expansion-india-iptv-broadband-market-dual-lens-growth-esg-alignment-2508/]
[12] Nokia's Strategic Relevance in 2025: Can the Telecom Giant Reclaim Stagnation? [https://www.ainvest.com/news/nokia-strategic-relevance-2025-telecom-giant-reclaim-stagnation-2507/]