Nokia to increase manufacturing in India

The Finnish company explains that the move comes as a response to increasing demand from local customers in India and international markets.

Demand for broadband is being driven by changes in consumer behavior,  from home working to data-rich entertainment services. Strong institutional backing and sizeable funding from governments and private equity groups around the world are enabling investments in broadband and fiber infrastructure to keep pace with this demand. In response to rising demand, Nokia is expanding its production capacity into Chennai as a participant in the Production Linked Incentive (PLI) program of the Government of India.

Nokia states in a press release that demand for fiber is also shifting to new regions with the Asia-Pacific region seeing strong demand in markets like Japan, India and Southeast Asia. Much of this demand will be seen in the form of fiber to the home (FTTH) but there is also significant demand from mobile network operators (MNOs) as they deploy 5G and need next-generation fiber in their transport networks to carry the expected surge in data traffic.

“The importance and criticality of high-speed broadband has never been more pronounced as it is today. As the momentum towards 5G networks and new hybrid usage models push operators towards increasingly distributed network architectures, service providers are investing in fiber to build out and upgrade their existing networks. Nokia is the leader in FTTx solutions globally and is innovating rapidly to introduce next generation PON solutions. We are happy to add the manufacturing capacity in India to better address increasing demand in the region and worldwide,” says Sandy Motley, President Fixed Networks at Nokia, in the press release.