Nokia Reinforces AI Networking Push With New Mobile Infra Chief and Cloud Pilot Success

Nokia is accelerating its transformation into a provider of AI-ready network infrastructure on two fronts: a high-profile management appointment and a completed cloud trial that could unlock significant commercial IoT revenue. The Finnish telecom equipment maker has tapped Emma Falck, a Siemens veteran, to take over its Mobile Infrastructure division from September, tasking her with developing networks architected from the ground up for artificial intelligence workloads.

The leadership change comes as Nokia demonstrates that its core network functions can run efficiently on third-party cloud infrastructure. Together with Vodafone and Amazon Web Services, the company completed a pilot in Frankfurt that deployed its IP Multimedia Subsystem and Packet Core as cloud-native network functions on AWS’s EKS and EC2 services. These systems ran in parallel with Vodafone’s existing network elements across multiple European countries, handling voice services such as vehicle and elevator emergency calls, as well as data services like smart meters for utilities. The three partners assessed not only technical performance but also lifecycle management, integration into Vodafone’s existing systems, and potential cost savings.

The pilot underscores Vodafone’s multi-cloud strategy and positions Nokia as a supplier that can decouple network software from proprietary hardware, making capacity more flexible to scale. For Nokia, it is part of a broader push to equip telecom operators with cloud-native solutions as they modernize their networks. Vodafone operates one of the largest managed IoT connectivity platforms globally, so a commercial rollout would carry substantial volume.

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On the software and AI front, Nokia recently introduced AI agents for its fixed-network portfolio. The systems automate fault diagnosis, halving the need for on-site technician visits and pushing first-contact resolution rates above 50%. CEO Justin Hotard laid out the company’s vision for a “cognitive broadband” era at a technology conference in Boston, emphasizing open interfaces and standardized ecosystems that will allow networks to self-optimize rather than simply act as data pipes.

The financial momentum from these strategic shifts is already visible. In the first quarter, revenue from AI and cloud customers jumped 49%, while the optical-networks division posted 20% growth. For the full year, management maintains its operating profit target of between €2.0 billion and €2.5 billion, and in the current quarter it expects sequential revenue growth of up to 9% with operating profit accounting for a meaningful share of the annual figure.

The stock has responded emphatically. Nokia shares recently traded at €11.77, having more than doubled over the past twelve months and gained over 111% since the start of 2024. The advance has pushed the share price roughly 93% above its 200-day moving average, though it still sits about 6% below the 52-week high of €12.55 reached in mid-May. With a management reshuffle aimed squarely at AI-era infrastructure and a successful cloud-native proof-of-concept in hand, investors are betting that the transformation has further to run.

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