Changes in consumer behavior, from working from home to data-intensive entertainment services, are driving demand for broadband. This demand is accompanied by strong institutional support, with significant funding from governments and venture capital funds worldwide fueling investments in broadband and fiber connectivity. Nokia is currently participating in the Indian government's Production Linked Incentives (PLI) program and is expanding its production capacity in Chennai in response to this growing demand.

Demand for fiber is also shifting to new regions, with strong demand in the Asia-Pacific region in markets such as Japan, India, and Southeast Asia. Much of this demand will be in the form of fiber to the home (FTTH), but there is also significant demand from mobile network operators (MNOs) as they deploy 5G and need next-generation fiber in their transport networks to carry the expected increase in data traffic. Nokia's planned OLT PON production in India will provide a boost to expanding the company's production base and geographic reach.