Nokia's expansion of AI technology partnerships with TIM Brasil and Deutsche Telekom, according to Reuters, elicits a resounding "So what?" from me. The fact that telecom companies are interested in AI is hardly news, and this collaboration lacks any discernible scent of opportunity. Let's stick to the facts.
The article details Nokia's collaboration with TIM Brasil in areas like network automation and predictive maintenance, and with Deutsche Telekom in customer service improvement and network optimization. All predictable narratives. The adoption of LLM-based chatbots for automated customer service and the use of NPUs to enhance the energy efficiency of network equipment are already anticipated steps for telecom companies.
The problem lies in the 'how'. There's a complete absence of concrete data regarding how Nokia's solutions outperform competitors (e.g., Ericsson, Huawei), the implementation costs, or the return on investment period. It's just a list of "collaborations".
These types of partnership announcements often serve as stock-boosting PR. The telecom equipment industry is fiercely competitive, leading to the exaggeration of even minor achievements. When Cisco touted "AI-based network management" in the past, we saw a similar scenario. In the end, it was just a few AI features added to an existing management system.
A bigger issue is that the adoption of AI by telecom companies might be slower than expected. Telecom networks are highly complex and require stability, making it difficult to introduce unproven new technologies indiscriminately. Especially newer tech like RAG is not fully stable yet, and security issues must be resolved.
Of course, in the long term, AI adoption by telecom companies is an inevitable trend. But there's no need to be thrilled by this partnership announcement right now. It's more productive to look for information on which companies telecom companies are investing in or acquiring to implement AI technologies.
In conclusion, Nokia's expanded collaboration announcement is 'colorless and odorless'. It only serves to confirm the AI adoption trend in the telecom industry, and it offers no particular implications from an investment perspective. It's wise to maintain a "wait and see" stance until more concrete information emerges. Remember that premature judgment can lead to loss.