Network vendor Nokia has landed a 5G network deal with Telecom Italia (TIM).

Nokia noted that it has been awarded a three-year deal by TIM to expand and modernize the coverage and capacity of its 5G network.

Telecom Italia is Italy's largest telecoms operator, with more than 36 million mobile subscribers. TIM first launched its 5G network back in 2019.

The agreement with Nokia will see the telco expand its 5G offering to smaller towns and rural areas, as the carrier pushes to "tackle the digital divide."

As part of the network agreement, Nokia will provide its AI-ready AirScale Radio Access Network (RAN) portfolio for TIM.

The vendor will supply its Habrok 32 Massive MIMO radios plus its Pandion portfolio of FDD multi-band remote radio heads for comprehensive coverage across multiple deployment scenarios.

Nokia will also provide its baseband products, including Lodos, which offers 4G/5G baseband capacity card offering enhanced scalability and reduced energy consumption.

"This partnership strengthens TIM’s leadership in building the next generation of 5G networks, enabling faster, smarter, and more sustainable connectivity across Italy," said Pietro Labriola, CEO at TIM.

"By combining innovation and efficiency, we are creating the digital infrastructure that will bridge the divide, accelerate industrial transformation, and support the country’s sustainable growth."

Nokia stated that it will also deploy its AI-powered MantaRay, which it notes will help TIM optimize and automate its network to become more efficient.

The deal also includes deployment, maintenance, and support services that leverage AI to enhance performance, efficiency, and safety, added Nokia.

"Our expanded partnership with Telecom Italia shows how a trusted 5G network can unlock Italy’s next phase of digital transformation," added Justin Hotard, President and CEO at Nokia. "With our AirScale solution, we’re helping TIM extend coverage and build a foundation for new AI-driven services. Together, we’re connecting intelligence and strengthening Italy’s competitiveness."