FEATURE: Only five months after becoming CEO, Justin Hotard initiated a new phase for Nokia by officially launching a “cutting-edge” R&D and manufacturing facility in Oulu, Finland.
Referred to as “the home of radio,” this remarkable new facility has taken five years to develop, beginning in 2020, with construction commencing in June 2022 and finishing in May this year.
Mobile World Live (MWL) was given the opportunity to explore the campus on Thursday (4 September), one day prior to Hotard’s official ribbon-cutting ceremony that inaugurated the site at an extravagant event graced by Finnish Prime Minister Alexander Stubb and representatives from the Finnish government.
As noted during the two-day visit, the inauguration represents an important milestone for Oulu, Finland, Nokia, and Hotard personally, as the organization aims “to provide next-generation networks designed for AI.”
Ex-Intel executive Hotard (center, left) took on the Nokia role amid a tense geopolitical climate. and a changing tariff environment, with high hopes regarding his capacity to drive the company’s AI goals, leverage the data center potential, and increase efforts beyond a stagnant communications infrastructure sector.
Certainly, during his initial months in the position, Hotard has aimed to initiate changes – suggesting a reorganization, with further details anticipated in November. He has also emphasized the necessity for the vendor to vigorously seek opportunities arising from the AI supercycle and indicated he was willing to move a larger portion of Nokia’s manufacturing to the US to mitigate the tariff risk.
During a briefing for the major campus launch, Hotard emphasized the crucial role of the new facility’s location, highlighting its importance for “technology innovation strategically for Nokia, Finland, of course for Europe, and frankly, for the democratic world.”
“I believe we understand that, from a geopolitical standpoint, possessing this type of technology, ongoing investment in technology, and the commitment we are showing in Nokia is far more important.” And for what reason? As you gaze into the future, we are at the beginning of the AI supercycle, and connectivity will only grow in importance.
Oulu Opening.
Spanning 55,000 square meters, the campus will house 3,000 Nokia staff members and feature a manufacturing facility, research and development labs, office areas, and a rooftop sauna in line with Finnish customs.
Nokia aimed to highlight the advantages for the supply chain of consolidating R&D and manufacturing together, while also placing significant emphasis on sustainability efforts. The campus operates entirely on renewable energy and features an on-site energy facility that is among the largest CO2-based district heating and cooling systems globally. Any surplus energy is utilized to warm 20,000 homes in Oulu.
During the tour, MWL was allowed to enter the factory space, which operates with a mix of automated robots and 400 human workers, and will serve for the New Product Introduction (NPI) of Nokia’s 5G radio and baseband products.
Additional showcased areas included an R&D lab and facilities for product verification and testing, certified by international regulators for radio frequency validation under extreme temperatures.
Outside the remarkable new location, Oulu hosts two additional facilities: the OuluZone field verification area that the vendor utilizes for radio development.
systems for civilian and military purposes in cooperation with educational institutions, startups, and NATO’s DIANA 6G initiative.
We also toured an over-the-air validation site (Otava) that tests its networks in simulated real-world conditions, such as Arctic environments.
Life Cycle.
In an interview with MWL, Jarrko Pyykkonen, leader of Oulu Technology Campus, stated that the center deserves to be recognized as the home of radio due to efforts aimed at encompassing the full lifecycle of 5G and upcoming 6G radio advancements, making sure networks are designed, constructed, and evaluated in Europe.
Pyykkonen highlighted that the site offers essential support for Nokia’s ongoing efforts to spearhead advancements in the mobile industry, encompassing System-on-Chip design, software creation, patent and standardization initiatives, along with base station hardware.
Reiterating Hotard, he mentioned that remaining in Europe was crucial due to the groundwork established by the vendor over many years.
“When I consider intricate technologies such as 5G and now 6G, it doesn’t occur by chance.” It necessitates strong foundations, extensive experience, an operational ecosystem that involves research partnerships with other firms, and smooth cooperation with city officials, particularly in Oulu. This is the main reason Nokia is making investments in this area. “A solid background from the past and an impressive history too.”
Significance of Research and Development.
After the company had to lower its 2025 forecast in its recent financial report, Hotard already has significant challenges ahead to improve the situation.
Nokia executives overseeing the tour were secretive about the new site’s cost, merely mentioning it is part of a €150 billion investment in R&D the company has made since 2000.
Hotard recognized Nokia’s solid foundations, stating he had not joined a company in “crisis.” Hotard acknowledges the significance of R&D, but he suggested that it’s wiser to concentrate not on the amount of investment but on “where we are investing and where we are being productive.”
The executive stated that, particularly in the telecom sector, the investment choices made today will undoubtedly become evident in the next five to ten years, revealing R&D in tangible products then.
“Clearly, when we identify chances to foster long-term growth and value, we will allocate resources to R&D. It’s consistently about maintaining balance and discipline.” “It’s not about the exact metrics, but rather where you choose to invest your efforts and truly explore that.”
Regarding regions, Hotard highlighted the significance of the US, which he referred to as Nokia’s “second home,” noting that the number of employees in the country surpasses that of Finland.
Hotard aims to “invest in regions that we believe possess geopolitical stability”, emphasizing a “robust history of foreign R&D” in the US, Europe, India, and Japan.
President of Mobile Networks Tommi Uitto stated that Nokia is “very careful” regarding its investments and has a procedure to identify the countries where it markets its products and conducts operations. “There is no middle ground.”
Protection, Business.
In his speech, Uitto highlighted severalkey focus areas for his division and the company moving ahead, as mobile technology keeps evolving.
In addition to urging a robust display of power from the European Union in reaction to a likely ban in China, Uitto pointed out two rapidly expanding market sectors that might balance a “flatish” operator segment.
Uitto initially discussed private wireless for businesses and industries, noting that the company had been providing solutions to “several major oil, gas, and water companies,” while suggesting significant collaborations in the railway industry related to both signaling and passenger experience.
“The business market is expanding at a double-digit rate.” I believe we do not possess.
Although I don’t have precise figures, I can confidently assert that there is evidently growth in double-digit percentages. The same holds true for defense.
Defence is certainly another major focus area for Nokia. Uitto mentioned that the strategy of the company is quite straightforward. “In contemporary warfare, having immediate situational awareness is crucial.”
He stated that Nokia aimed to develop communication solutions utilizing 4G, 5G, and upcoming 6G technologies for soldiers, providing military units “10 times the performance of traditional military radios.”
Triumphing in 6G.
6G was a prominent subject over the two days in Oulu. Nokia announced it is conducting proof of concept trials in Oulu utilizing nearly 7GHz frequencies on four test devices, evaluating performance in urban settings and the impact of various attenuations on signal quality.
According to Uitto, the potential of 6G might be found in enhanced capacity, even “if you don’t have faith in any significant application” emerging, which will be crucial to manage the current surge in AI.
“In the future, a significant portion of the traffic increase will stem from AI and the implications of this traffic growth.” The Bell Labs modeling indicates that the uplink capacity of 5G and 5G-Advanced will be insufficient. You require 6G primarily due to capacity limitations to handle this surge in traffic.
According to Hotard, investments in IP and radio, along with an emphasis on a vision of the next-generation being increasingly cloud and software oriented, are essential for the 6G journey.
He stated that open API access would be a crucial component of 6G and proposed that lessons should be drawn from the capital generation experiences of the 5G and 4G generations.
“6G must offer new revenue opportunities beyond the network alone.” And how the ecosystem interacts with and benefits from that may still be uncertain. “However, I believe we have an excellent chance to succeed.”
