Nokia’s CEO Envisions a 5G Revolution in Military Communications

Nokia CEO Pekka Lundmark's Vision: Redefining Tactical Communications and Data Center Growth Amid Global Challenges

Editorial Team (ET)July 9, 2025

Nokia CEO Pekka Lundmark is not just navigating the Finnish telecom giant through its challenges but redefining its role in a volatile, tech-driven world. After losing a significant $14 billion contract with AT&T to rival Ericsson, Nokia is turning adversity into opportunity by exploring innovative growth areas such as defense and data centers. Central to this vision is a groundbreaking concept: putting 5G technology directly into soldiers' backpacks.

This bold strategy reflects Nokia's evolution from a mobile phone manufacturer to a cutting-edge leader in network solutions. Let’s dive into Lundmark’s vision, the rationale behind this pivot, and what it means for Nokia’s future.

The Transformation of Nokia

Nokia’s journey from being a global leader in mobile phones to focusing on communication equipment has been a tale of resilience. Its pivot came after losing dominance to smartphone pioneers. As Lundmark notes, the name Nokia still sparks recognition, which the company leverages to position itself as a leader in B2B network technologies.

Lundmark’s diverse professional background—including stints in startups and venture capital—has profoundly shaped his leadership style. His experience underscores the importance of innovation and agility, qualities he is embedding into Nokia’s DNA.

Why 5G in Backpacks?

Integrating 5G technology into soldiers’ backpacks represents a seismic shift in tactical communications. This portable solution eliminates the need for fixed cell towers, providing a robust, self-configuring network that moves with troops. It’s an answer to modern military demands for mobility, resilience, and seamless connectivity.

Nokia’s acquisition of Virginia-based Fenix Group, known for its military-grade communication systems, has been pivotal. By combining Fenix’s expertise with Nokia’s 5G platform, the company has created a flexible, battlefield-ready solution designed for defense applications.

The Broader Vision: Expanding into Defense

With the world becoming more unstable, demand for secure communication networks is surging. Nokia is uniquely positioned to address this need, offering solutions for public safety and military use. The defense sector presents a lucrative growth opportunity, and Nokia’s investment in it reflects a strategic bet on global security concerns.

Beyond the battlefield, Nokia sees applications for its robust networks in public safety, such as police and fire brigades. These networks could revolutionize emergency response by ensuring seamless, reliable communication in critical situations.

Data Centers: Nokia’s Next Frontier

While traditional network operator markets are stagnating, data centers are booming, growing at an annual rate of 30%. Nokia has identified a €20 billion addressable market in this space, and its recent acquisition of Infinera is a step toward capturing this opportunity.

As artificial intelligence and cloud computing place unprecedented demands on data center infrastructure, Nokia’s expertise in safety, reliability, and programmability positions it as a key player in this sector.

Navigating the Political Landscape

The reelection of Donald Trump presents both challenges and opportunities for Nokia. Trump’s first term saw a shift away from Chinese vendors, which benefited Nokia. Lundmark is focused on continuing this momentum, particularly in North America, a critical market for the company’s defense and data center ambitions.

While Nokia steers clear of politics, its business strategy aligns with government priorities, emphasizing the importance of trusted vendors and secure networks.

Leadership and Balance

Lundmark’s leadership style extends beyond corporate strategy to personal discipline. He prioritizes physical fitness, dedicating an hour daily to exercise, believing it enhances his performance as CEO. This balance between physical and mental well-being is a cornerstone of his philosophy.

His approach resonates with employees and stakeholders, reinforcing the idea that leadership is as much about personal example as it is about strategy.

Challenges and Opportunities Ahead

Despite its pivot, Nokia continues to grapple with its legacy as a mobile phone maker. Rebranding as a B2B technology leader is an ongoing challenge, but Lundmark sees it as an opportunity to leverage the company’s name recognition.

Whether in defense, data centers, or beyond, Nokia’s success will hinge on its ability to innovate and adapt. With Lundmark at the helm, the company is poised to redefine its future.

Conclusion: A Vision for the Future

Under Pekka Lundmark’s leadership, Nokia is transforming itself into a versatile technology powerhouse. By embracing opportunities in defense and data centers, the company is not just responding to market demands but shaping them. The audacious goal of embedding 5G into soldiers’ backpacks symbolizes Nokia’s commitment to innovation and adaptability.

As Nokia navigates this new chapter, it’s clear that the company’s story is far from over. With its bold strategies and visionary leadership, Nokia is poised to remain a key player in the global technology landscape.

Nokia5G

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