Nokia Corporation (NYSE:NOK) has secured a three-year agreement to help Telecom Italia S.p.A. (OTC:TIIAY) modernize and broaden its 5G coverage across the country, marking a significant expansion of the Finnish company’s footprint in Italy.

Nokia said the partnership followed a competitive tender and will bring its latest AirScale equipment, including Massive MIMO radios and multi-band remote radio heads, to new regions across Italy.

The project strengthens Telecom Italia’s plans to reduce connectivity gaps and enhance high-speed access in communities outside major urban centers.

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Telecom Italia will integrate Nokia’s updated baseband systems, powered by the company’s ReefShark technology, to improve energy efficiency and support higher network capacity.

Nokia will also expand Telecom Italia’s use of its MantaRay SON platform, allowing automated optimization through AI-driven analytics. These tools aim to deliver more consistent performance across varied environments.

Telecom Italia CEO Pietro Labriola said the collaboration reinforces the operator’s push to build advanced digital infrastructure that supports Italy’s economic development.

Nokia President and CEO Justin Hotard stated that the upgraded network will enable Telecom Italia to introduce AI-enabled services and enhance competitiveness in key commercial areas.

The initiative arrives as Nokia continues to sharpen its European market position. The company also recently announced plans to withdraw its listing from the Paris Stock Exchange, a move intended to streamline its trading footprint.

Price Action: NOK shares were trading higher by 0.15% to $6.74 premarket at last check Monday.

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