The telecom sector in India is now moving ahead with the rapid deployment of 5G networks. The next focus is on ensuring that most of the telecom equipment used in the country is manufactured in India. These should be supplied from India to other countries also. In this direction, Nokia is preparing to further strengthen its manufacturing and technology presence in India. The company is supporting the government’s proposed Telecom PLI 2.0 policy. Nokia believes that India’s manufacturing capacity along with the engineering talent and research facilities available here can give it a bigger role in the global supply chain.
Nokia’s India business head Samar Mittal told Moneycontrol that India is no longer just a domestic market for the company. About 40% of the telecom equipment manufactured in Nokia’s factory in Chennai is sent abroad. The company also has work related to R&D, software development, operational excellence and repair in India. In such a situation, the company wants to develop India as a manufacturing and technology hub that adds more value rather than just an assembly center.
Local manufacturing can get a boost from PLI 2.0
The government is working on a new incentive program after the existing telecom PLI scheme. The total outlay of the current scheme is Rs 12,195 crore and it is scheduled to end in March 2027. The new scheme coming after this is targeted to be launched in the first quarter of the financial year 2028.
In the new policy, there will be no emphasis on making only ready-made telecom equipment. It is expected to focus on component manufacturing, backward integration and adding more value within the country. Nokia considers this change important. This can strengthen the local supplier network in India and pave the way for the development of the entire supply chain of telecom equipment in the country.
Goods reaching abroad from Chennai plant
Nokia’s manufacturing presence in India is stronger than before. The company’s Chennai plant caters to the domestic market as well as the needs of other countries. According to the company, about 40% of the production of this plant is exported. India’s importance for Nokia is not limited to just the factory. The company also does software and research related work here. The knowledge and solutions developed from the Indian engineering team are also being used in global operations.
After installation of 5G, now eye on earning from network
5G network has expanded rapidly in India. Now the next challenge for telecom companies is how to create new business and earning opportunities from this network. According to Nokia, network slicing, private networks and software based services can play an important role in this.
For example, a factory needs more secure and reliable connectivity for its work instead of the normal mobile network. Private 5G network can meet such needs. Similarly, through network slicing, virtual networks can be created according to different needs on the same network.
Instead of just selling network equipment, Nokia is now focusing on developing such use cases in collaboration with customers. The company believes that the real earnings of 5G will increase when its new business uses come to light on a large scale.
AI-RAN can become the next big opportunity
The next big change in the telecom sector is being seen in the form of AI-RAN. Nokia is in talks with Indian operators regarding this technology and some trials of the company are also progressing. In AI-RAN, artificial intelligence is combined with radio access networks. This can help in running the network smarter, handling traffic and making better use of the available spectrum.
With the increasing use of AI, data traffic will also increase rapidly. In such a situation, the needs related to network, cloud, data center and security will increase. Nokia’s focus is on combining automation and security with connectivity for this changing environment. Its benefits for India will not be limited to Nokia’s investment only. If component manufacturing and exports increase, local companies may get new business opportunities.
