Nokia's 5G slowdown forces a pivot to cloud and undersea cables

Nokia is facing fresh challenges as demand for 5G network equipment slows in key markets. The Finnish telecoms giant has seen revenue decline in its core network business, even as its enterprise division reports strong growth. Competitors like Cisco continue to dominate in routing and switching, leaving Nokia to refocus its strategy.

The slowdown in 5G rollouts across North America and Europe has hit Nokia hard. Major carriers, including Verizon and AT&T, have scaled back investments in radio access networks after meeting coverage goals. This pullback follows a peak in global 5G expansion between 2024 and 2025, leaving suppliers with excess capacity.

Nokia's network revenue has fallen further due to weaker demand for 5G radio equipment. High fixed costs and pricing pressure in North America have also squeezed operating margins. Despite these struggles, the company remains a key supplier of base stations and core equipment to T-Mobile, AT&T, and Verizon. To offset these challenges, Nokia is pushing into new areas. Its *Network as Code* initiative offers cloud-native solutions for businesses, backed by partnerships with Google Cloud and Microsoft Azure. The enterprise division, particularly in private 5G networks for manufacturing and logistics, is now seeing double-digit growth. The company is also diversifying into undersea cable projects. Recent contracts for high-capacity transatlantic links aim to secure new revenue streams beyond traditional network equipment.

Nokia's shift toward enterprise solutions and undersea cables reflects its effort to adapt to a changing market. While its core network business faces headwinds, growth in private 5G and cloud services offers a potential path forward. The company's ability to secure new contracts will determine its position in an increasingly competitive sector.