Nokia Secures Landmark Expansion in Telecom Italia's 5G Network: A Major Win Over Ericsson

In a seismic shift for Europe's telecom vendor landscape, Nokia announced on November 17, 2025, that it has clinched a significant three-year contract with Telecom Italia (TIM), Italy's largest operator. This deal dramatically expands Nokia's footprint in TIM's nationwide 5G radio access network (RAN), boosting its market share by approximately 40 percentage points—at the direct expense of longtime rival Ericsson.



The agreement, won through a competitive tender process, positions Nokia as TIM's primary 5G RAN supplier and underscores the Finnish vendor's resurgence in high-stakes European deals. With TIM serving over 36 million mobile customers, this contract not only accelerates Italy's 5G modernization but also highlights growing operator priorities: energy efficiency, AI-driven automation, and bridging the digital divide in rural areas.

Deal Details: From Existing Partner to Dominant Player

Nokia has supplied parts of TIM's network for years, holding an estimated 20-25% share of the RAN prior to this announcement. The new three-year rolling contract catapults that to around 60%, covering new regions alongside Nokia's existing territories.

Key elements of the deployment include:

  • AirScale Portfolio Rollout: Nokia's latest AI-ready 5G AirScale RAN equipment, powered by ReefShark System-on-Chip technology for superior performance and lower power consumption.
  • Advanced Radios: Habrok 32 Massive MIMO radios for high-capacity urban areas and Pandion multi-band remote radio heads (RRH) for versatile coverage, including challenging indoor and rural scenarios.
  • Baseband Upgrades: High-performance Lodos 4G/5G baseband cards offering enhanced scalability and reduced energy use.
  • AI-Powered Automation: Expanded deployment of MantaRay SON (Self-Organizing Network), an AI-driven solution that automates optimization, predicts issues, and improves network efficiency and user experience.
  • Comprehensive Services: Deployment, maintenance, and AI-enhanced support to boost resilience, safety, and operational efficiency.

Financial terms remain undisclosed, but the scale—potentially involving upgrades across thousands of sites (TIM's infrastructure aligns with towerco Inwit's ~25,000 towers)—makes this one of Nokia's biggest European wins in recent years.

Why TIM Chose Nokia: Efficiency, Sustainability, and Digital Inclusion

TIM CEO Pietro Labriola emphasized the strategic fit:

“This partnership strengthens TIM’s leadership in building the next generation of 5G networks, enabling faster, smarter, and more sustainable connectivity across Italy. By combining innovation and efficiency, we are creating the digital infrastructure that will bridge the divide, accelerate industrial transformation, and support the country’s sustainable growth.”

The deal aligns perfectly with TIM's 2025-2027 industrial plan, which prioritizes:

  • Tackling Italy's digital divide by extending ultra-fast 5G to underserved rural and small-town areas.
  • Reducing energy consumption amid soaring power costs for networks.
  • Leveraging AI for autonomous operations to cut opex and improve quality of service.
  • Supporting enterprise digitalization, from smart factories to enhanced mobile broadband.

Nokia's energy-efficient hardware and MantaRay AI tools directly address these, promising lower environmental impact while delivering higher speeds and reliability.

Nokia's new CEO Justin Hotard (who took the helm earlier in 2025) hailed the win:

“Our expanded partnership with Telecom Italia shows how a trusted 5G network can unlock Italy’s next phase of digital transformation. With our AirScale solution, we’re helping TIM extend coverage and build a foundation for new AI-driven services.”

A Blow to Ericsson—and a Sign of Changing Times

This marks a rare instance of Nokia displacing Ericsson in a major European incumbent's core RAN. Ericsson, which renewed its own TIM RAN deal as recently as February 2025 and remains the 5G core provider, declined to comment on lost share but confirmed ongoing cooperation.

Industry analysts see multiple factors at play:

  1. Vendor Diversification: Post-Huawei bans in Italy (driven by security concerns under previous governments), operators are reducing single-vendor reliance.
  2. Cost and Efficiency Pressure: Nokia's latest AirScale gear offers compelling TCO advantages through lower power draw and AI automation.
  3. Performance Momentum: Nokia has overcome early 5G stumbles, winning recent high-profile deals (e.g., parts of VodafoneThree UK) and demonstrating superior Massive MIMO and energy metrics.
  4. Geopolitical Tailwinds: Preference for "trusted" European/Nordic vendors in sensitive infrastructure.

For Ericsson, already facing margin pressure and competition from open RAN challengers, losing ~40% of Italy's largest mobile RAN is painful—especially coming just months after sharing the UK VodafoneThree contract with Nokia.

Broader Implications for Europe and the Vendor Market

  • Nokia's Revival: This deal cements Nokia's recovery trajectory, boosting investor confidence and providing revenue visibility into 2028+.
  • European Consolidation Trends: As operators like TIM focus on efficiency amid flat ARPU, multi-vendor strategies and AI-native networks will accelerate.
  • Path to 5G-Advanced and Beyond: The AI foundations laid here (MantaRay SON) position TIM for quicker adoption of 5G-Advanced features like network slicing and enhanced uplink.
  • Digital Italy Boost: Faster rural 5G rollout supports EU Recovery Fund goals and Italy's push for Industry 4.0 competitiveness.

Final Thoughts: Nokia Strikes While the Iron Is Hot

In a maturing 5G market where capex is tightening, winning share from a direct rival like Ericsson is no small feat. For Italian consumers and businesses, the result should be tangibly better coverage, speeds, and sustainability. For Nokia, it's validation that its heavy investments in AI-RAN, energy efficiency, and ReefShark silicon are paying off.

If recent patterns hold, expect more European incumbents to revisit vendor mixes in 2026 tenders. The Nordic duel just got a lot more interesting.

What does this mean for TIM customers—or Ericsson's European stronghold? Share your take in the comments!

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