
Nokia (NYSE:NOK) partnered with Deutsche Bahn (DB), Germany’s national railway operator, to deploy a commercial 1900 MHz (n101) 5G radio network solution with a 5G Standalone (SA) core on live outdoor test tracks.
The collaboration aims to streamline DB’s communications infrastructure, leveraging a frequency band catering to 5G railway systems in Europe, forming the Future Railway Mobile Communication System (FRMCS) foundation.
By introducing this solution, Nokia and DB are driving the industry’s migration from GSM-R to FRMCS, which enables mission-critical, real-time communications essential for automated train operations, intelligent infrastructure, and smart maintenance.
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The company said in a press release that the network supports resilient, sustainable, and more efficient rail services through built-in failover, self-healing, and real-time monitoring features.
Implemented at DB’s digital railway test field in Germany’s Ore Mountains, the system also contributes to the European FP2-MORANE-2 project, advancing rail digitalization across Europe.
The contract strengthens DB’s ongoing trials with Nokia’s 5G SA core and radio solutions. It integrates the AirScale portfolio to ensure a smooth migration from legacy systems.
For Nokia, the collaboration underscores its efforts to expand in specialized 5G applications even as its broader business faces headwinds. Shares of the Finnish telecom equipment maker have risen 2% year-to-date, significantly underperforming the NYSE Composite Index’s 12% gain.
Persistent weakness in its Mobile Networks segment has weighed on results, offsetting growth in Network Infrastructure, cloud, and Network Services.
Financial performance has been uneven. Nokia has missed consensus adjusted earnings estimates in three of the last four quarters and failed to meet revenue expectations in at least two.
On July 22, the stock fell sharply after management cut its full-year 2025 operating profit outlook, citing adverse currency movements and tariff impacts.
The company now expects operating profit of 1.6–2.1 billion euros, down from its prior range of 1.9–2.4 billion euros. The revised forecast reflects an estimated 230 million euros currency hit and up to 80 million euros in tariff-related losses. Nokia also reported preliminary second-quarter net sales of 4.55 billion euros and operating profit of 300 million euros.
NOK Price Action: Nokia shares are trading lower by 0.22% to $4.50 premarket at last check Monday.
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