Nokia has signed a five-year contract extension with Telefónica Germany.

The contract extension will see Nokia support the modernization and upgrade of Telefónica’s nationwide radio access network until 2030.

As such, the agreement includes Nokia’s advanced Cloud RAN products and supports Telefónica’s 5G expansion plans nationwide.

The contract extension comes at a time when Germany’s government is urging its network operators to shift away from Chinese network vendors, such as Huawei and ZTE.

Earlier this summer, Telefónica confirmed plans to ditch Huawei as a 5G vendor in Germany and Spain.

That loss is Nokia’s gain, however, as the vendor notes it will provide its AI-powered products to support Telefónica’s move to transform its operations and network performance using AI.

Nokia will supply its energy-efficient and AI-ready AirScale Radio Access Network (RAN) portfolio, including Habrok Massive MIMO radios for the n78 spectrum band, Pandion multi-band remote radio heads, and AirScale Radio small cell solutions.

On top of this, Nokia’s Interleaved Passive Active Antenna (IPAA+) product, which aims to simplify site design and accelerate 5G rollout, will also be deployed. The contract includes maintenance and network optimization services.

Telefónica will also continue to use MantaRay NM, which supports purpose-built RAN and Cloud RAN, including data center hardware and cloud infrastructure.

“Nokia has been a trusted partner in our journey to deliver the best network experience for our customers. This contract extension reflects our shared commitment to advancing 5G technology and creating a more connected and sustainable Germany,” said Matthias Sauder, director networks, O2 Telefónica.

Last week, Nokia announced that it was splitting its operational model into two primary operating segments, Network Infrastructure and Mobile Infrastructure.

The new Mobile Infrastructure segment will integrate Nokia’s Core Networks, Radio Networks, and Technology Standards, enabling telecom developments in AI-native networks and 6G.