Indian engineering services company L&T Technology Services (LTTS) agreed a five-year contract to back Nokia’s local engineering and R&D work into areas including 5G, AI-based operations and next-generation computing infrastructure.

LTTS plans to establish a dedicated offshore development centre to support the Finnish vendor’s R&D programmes spanning product engineering and development, embedded systems, and software and system integration.

Financial terms were not disclosed.

LTTS added it would also assemble a dedicated engineering team to work with Nokia R&D teams globally.

It stated the development centre would focus on engineering for telecoms and data centre infrastructure, along with employing AI in network automations and developing intelligent automation.

Vivek Jaiswal, SVP of engineering at Nokia, said India is an “important innovation hub” for the vendor and backed LTTS to help “expand our R&D footprint and accelerate innovation”.

He argued is it essential Nokia continues investing in R&D to deliver the “advanced connectivity technologies” AI requires.

For LTTS, the contract aligns with a focus on next-generation computing and AI infrastructure.

LTTS provides AI, digital and engineering R&D services across more than 25 countries.

The agreement comes as Nokia positions AI infrastructure and advanced connectivity as key growth areas during a period CEO Justin Hotard previously called a “super cycle” involving the technology.

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UK operator Virgin Media O2 (VMO2) flagged an around 20% improvement in spectral efficiency by using AI technology in the RAN during a test with Nokia at a busy transport hub, in what it described as first of its kind in the nation.

The test used AI to predict and optimise 5G radio resources during changing network conditions and levels of demand on a site serving customers around London Paddington rail station.

VMO2 noted use of the technology meant it could carry a greater amount of data using existing spectrum resources and deliver “significant throughput gains” during periods of high demand.

It asserted the results showcase how it can use AI to support growing traffic volumes, faster downloads and higher quality streaming, while reducing buffering in busy locations.

VMO2 CTO Jeanie York said as demand for data keeps growing “we need smarter ways to make the most of the spectrum and infrastructure we already have”.

“This live trial with Nokia showed how AI can improve network efficiency and help us respond more effectively to changing customer demand. By making better use of existing network resources, we can deliver a better experience for customers while supporting future traffic growth.”

The operator noted the project with Nokia is part of an ongoing network transformation plan.

Nokia president of mobile networks Emma Falck added the test “demonstrates how AI is moving from experimentation to delivering measurable benefits in live mobile networks”.

She added the collaboration “shows the significant potential of AI-native networks to enhance customer experiences while improving operational efficiency”.

The news is the latest in what is a hot mobile industry topic of use of AI in the RAN and comes a week after a spate of partner releases involving Nokia’s work in the segment alongside Nvidia.

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