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At Nokia Innovation Day 2025, industry leaders emphasised Europe’s critical challenges in achieving telecom unity, boosting AI-driven infrastructure, and securing strategic independence amid geopolitical tensions.
The Nokia Innovation Day 2025, held in Vimercate, provided a clear and urgent message on the state of Europe’s telecommunications sector. Without swift progress towards completing the European single market and fostering pan-continental champions, the industry risks remaining too fragmented to contend on the global stage. Former Italian Prime Minister Enrico Letta highlighted stark disparities in market scale: while a single Chinese operator commands around 400 million users, and US operators average 100 million, Europe’s largest operators rarely exceed 5 million subscribers. This fragmentation significantly hampers the ability to achieve economies of scale and invest sufficiently in advancements like 5G and the nascent 6G networks. Letta stressed the importance of finishing the single market by 2028, warning that failure to act decisively would mean a lost opportunity with no similar chance for at least a decade, effectively cementing Europe’s competitive disadvantage compared to the US and China.
The significance of this integration challenge was echoed by Nokia Italy’s CEO, Stefano Grieco, who emphasised the necessity for networks to evolve beyond mere transit channels into programmable, secure, and sustainable platforms. Here, artificial intelligence (AI) plays a pivotal role by automating processes, enhancing resilience, and cutting costs, transforming telecommunications infrastructure into a critical driver of economic digitalisation rather than a simple commodity. This vision aligns with broader industry trends showcased by Nokia at Mobile World Congress 2025, where it unveiled collaborations with global partners including SoftBank, T-Mobile US, and NVIDIA to develop AI-powered Radio Access Networks (AI-RAN). These efforts focus on blending AI with cloud infrastructures to improve efficiency and open new revenue streams, positioning AI-RAN as a major innovation shaping the future of telecom networks worldwide.
Beyond technological advancement, the event placed substantial focus on the geopolitical imperatives underlying Europe’s telecom ambitions. Finnish Ambassador to Italy Matti Lassila painted a picture of an increasingly multipolar and fragile international landscape, marked by the erosion of Pax Americana, ongoing conflicts, and economic tensions between the US and China. Under these conditions, technological sovereignty emerges as a form of geopolitical power. Telecom infrastructure, including vulnerabilities like cyberattacks and GPS interference, has become integral to national security and stability. Dialogue between academia, industry, and policymakers further stressed the urgent need to convert research into economic value, foster open ecosystems akin to cloud computing, and prioritise the development and attraction of human capital to drive digital transformation.
At the industrial level, Nokia’s commitment to Europe’s technological future is underscored by its long-term partnerships and cutting-edge innovation hubs. A multi-year extension with Iliad Group, reinforcing support for 3G to 5G networks across France and Italy, highlights ongoing investment in sustainable, high-performance connectivity. Meanwhile, the Nokia Innovation Day revealed the strength of Italian-based research centres working on advanced technologies such as coherent optical modules capable of transmitting up to 800 Gbps over transoceanic distances, resilient microwave radio links essential for difficult terrains, and a rapidly expanding photonics integration lab pioneering nanometric optical signal processing. These capabilities position Italy as a strategic innovation hub within Nokia’s global network and underscore how local excellence contributes directly to continental competitiveness and autonomy.
The convergence of geopolitical urgency, industrial strategy, and technological innovation was summarised by John Harrington, Nokia’s SVP for Europe, who insisted that Europe must transform its telecom operators into genuine technology companies and no longer serve as mere data conduits for American hyperscalers. Achieving this requires accelerated regulatory reforms, standardisation, and execution capacity—elements critical to nurturing industrial champions who can compete internationally while securing Europe’s strategic independence.
The Nokia Innovation Day 2025 thus encapsulates the dual nature of Europe’s telecom challenge: on one hand, the pressing need for political and industrial integration to overcome fragmentation and secure technological sovereignty; on the other, the tangible scientific and R&D excellence emerging from European centres like Nokia’s Vimercate labs. Together, these threads highlight that innovation and strategic autonomy are not abstract ambitions but essential conditions for Europe to safeguard its digital future, sovereignty, and global relevance.
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Source: Noah Wire Services