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Nokia has announced its intention to buy optical networking specialist Infinera for $2.3 billion.
The motivation for the Infinera acquisition is scale, said Nokia CEO Pekka Lundmark, during an analyst call detailing the announcement.
Jimmy Yu, Dell'Oro Group
Optical networking is how communications service providers and hyperscalers cope with the exponential traffic growth.
Continual innovation is required to reduce the cost and power consumed to transport such traffic. For a systems vendor, having scale helps meet these aims.
Optical networking wasn't always central to Nokia's strategy. In 2013, Nokia sold its optical networking arm to Marlin Equity Partners, which became Coriant.
Now, Nokia wants to be a leading optical networking vendor by acquiring Infinera, a company that bought Coriant in 2018.
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