From phones to networks: Nokia eyes major expansion in Karnataka

Finnish telecommunications and technology major Nokia Corporation , which has transformed itself from a consumer mobile phone brand into a global network infrastructure and enterprise technology company, is looking to deepen its footprint in Karnataka by setting up a global capability centre (GCC) and expanding its research operations in the state, Industries Minister M B Patil said on Friday. Nokia, which was once a dominant force in the global handset market, has exited large-scale consumer phone manufacturing, with its mobile phone brand currently licensed to HMD Global . While Nokia-branded feature phones and select smartphones continue to be sold, particularly in markets like India, the company itself now operates largely as a business-to-business player focused on telecom networks, software and services.

Nokia today derives most of its revenues from supplying network equipment and digital solutions to telecom operators, enterprises and governments, and from licensing its extensive portfolio of telecom patents. Its core businesses include 5G and emerging 6G networks , cloud and edge computing, private wireless networks, optical infrastructure and defence-grade communications. Despite the decline of its handset business over the past decade, Nokia has retained a strong and strategic presence in Bengaluru for over 25 years , where it operates its largest global R&D centre . The Bengaluru facility plays a key role in the company’s global innovation pipeline, with engineers working on next-generation networks, telecom software platforms and artificial intelligence-led automation.

During meetings with senior Nokia executives on the sidelines of the World Economic Forum (WEF) annual meeting in Davos, discussions were held on expanding the company’s operations not only in Bengaluru but also across Karnataka, including tier-2 cities, with the state government assuring full support for future investment plans, Patil said in a statement. Industry observers see the proposed global capability centre as an indication of Nokia’s intent to consolidate high-value engineering, product development and digital services work in India, reflecting the country’s growing importance as a global hub for telecom research and innovation.

The minister also reiterated Karnataka’s commitment to supporting the ‘Yes–BLR UpLink’ initiative , which seeks to scale the ‘Yes Bengaluru’ sustainable urban development programme into a globally recognised platform for collaboration between governments, industry and start-ups. The initiative, discussed in detail during a meeting with John Dutton, Head of UpLink at the World Economic Forum, provides financial support, mentorship and pilot opportunities to start-ups working on real-world, city-centric challenges related to urban development.

In addition, discussions were held with global cybersecurity firm Cloudflare regarding its potential participation in the proposed ‘KWIN City’ project , envisioned between Dabaspet and Doddaballapur as a smart, sustainable ecosystem aimed at attracting global talent while driving entrepreneurship and economic growth. The state government assured necessary support for Cloudflare’s future expansion plans, with the company’s Global Strategy Head Stephanie Cohen describing Karnataka as one of the world’s best destinations for attracting advanced technologies, Patil said.

The minister further said that US-based space technology firm Vast Space, UAE-based multinational Crescent Enterprises and US aerospace company Voyager Technologies have also expressed interest in partnering with the Karnataka government in areas ranging from space technology and advanced manufacturing to innovation-driven initiatives, including potential collaboration with ISRO. Collectively, the engagements underline Karnataka’s push to position itself as a global hub for deep technology, telecom infrastructure, space research and sustainable urban development.