Nokia acquires Infinera: a revolution in the Internet infrastructure, communication and the G6 generation

The Finnish telecommunications giant that once dominated the mobile phone market has gone through a tortuous course of decline and regrowth, and now positions itself as the most powerful force behind the scenes of the global Internet networks, assuring its dominance of the market until the middle of this century.

The story of Nokia is one of the most fascinating stories in the modern business world, a story of a company that reached the highest peak and fell from it with dizzying speed. Until 2007, Nokia was synonymous with innovation and reliability, but that year Steve Jobs introduced the first iPhone and changed the rules of the game forever.

Nokia executives at the time underestimated the new device, they claimed that it was too expensive a toy that would break easily and would not last in the competitive market. This mistake cost them dearly, and in less than five years Nokia lost all of its market share to Apple and devices based on Google’s operating system. When the company realized that it would not be able to beat the iPhone on its home turf, it made a painful but brilliant strategic decision and decided to reinvent itself as an infrastructure and patent company.

Today the situation is completely different and it seems that Nokia’s bet has paid off in a big way. The company has developed and registered thousands of patents without which no phone manufacturer in the world, including the largest, can sell a device that operates on fifth or sixth generation technology. Nokia has become the sole leader in setting the global standards for the next generation of communications, which gives it the right to receive rents and royalties from every device sold around the globe.

These agreements were signed for a very long term, so the company guarantees itself stable and high revenues until at least 2040. This is a business model that transforms it from someone who fights for the consumer’s heart to someone who rents the roads on which all of our information travels.

As part of the effort to lead the next technological revolution, Nokia is now making one of its most significant moves in the purchase of the American company Infinera. Infinera is no longer an ordinary technology company, it owns the only development and production center in the world for chips based on a material called indium phosphide.

It is a semi-conducting material with extraordinary physical properties, the main of which is its ability to emit light by itself. In the traditional silicon-based chip world, external light sources are needed to transmit data over optical fibers, which causes a lot of energy loss and heat generation. Infinera’s chips make it possible to produce a built-in laser inside the chip itself, which significantly reduces power consumption and makes data transfer much faster and more efficient.

Nokia has already received patents for this laser plant, and as of 2026 is the only one in the world that owns such technology. This combination allows artificial intelligence components to work at the speed of light, when the information does not travel through slow copper cables but inside tiny optical chips.

Nokia now controls the entire value chain, it designs the chip, builds the laser and develops the software that manages everything. This move is especially critical in an era where artificial intelligence requires a lot of imaginative computing power and energy, and Nokia’s ability to provide cost-effective and fast solutions makes it the only player in the market that can meet these demands.

The sixth generation of cellular communication, which is expected to come into widespread use in the coming years, will offer a speed 100 times higher than that of the fifth generation we know today. It is not just about a higher browsing speed on the phone, but the ability to transfer huge amounts of data in real time and without any delay. When we can transfer data at such a speed, the world of possibilities will open up in a way that is hard to imagine today.

In video calls we can see people in 3D and in perfect quality, until you feel that they are in the same room with you. This revolution will also completely change the world of medicine, when a surgeon will be able to sit in an operating room in New York and operate on a patient who is in a hospital in Tel Aviv, with his movements passing through the sixth generation network with perfect precision and without a delay of a thousandth of a second.

Meanwhile, the world of transportation will also undergo a dramatic change thanks to Nokia’s infrastructure. Autonomous vehicles will be able to communicate with each other and with the road infrastructure continuously, which will completely prevent traffic jams and allow for a smooth flow of traffic.

Vehicles will receive an immediate warning of a child running onto the road even before the driver or the vehicle’s sensors notice him, thanks to information that will flow from smart street cameras connected to the high-speed network. This technology will save lives and make the urban space much safer. All of these require a stable, fast and smart network, and Nokia is the one building these foundations within its laboratories and in the new factories it has acquired.

The economic significance of these moves is enormous for Nokia and for the global capital market. Senior analysts estimate that if Nokia decides in the future to issue Infinera as an independent company on the stock exchange, its value may be higher than the value of the entire consolidated Nokia company today.

The reason for this is the exclusivity of the indium phosphide technology and the expected huge demand for these chips from the technology giants such as Google, Amazon and Microsoft, who need energy savings in their huge data centers. Nokia now holds a strategic asset that no other company has, and it is using this position to establish its dominance for many years to come.

Although the average consumer no longer sees the Nokia logo on their phone every morning, the company is everywhere information flows. It is in the optical fibers underground, in the antennas on the roofs and in the servers that process our requests on the Internet. The transition from focusing on the end device to focusing on the infrastructure is the move that saved the company and made it more relevant than ever.

The coming years will be the real test of these technologies, but with a backlog of patents granted exclusivity until 2040 and control over the production of the laser chips, Nokia is in an opening position that any other company could only dream of. The revolution is already here, and it is illuminated by Nokia’s laser light.