Nokia will manufacture multi-rate optical modules for Optical Line Terminals (OLTs) at Fabrinet’s facility in Santa Clara, California
Following on a recent announcement that it would manufacture fiber electronics in the U.S., Nokia has now revealed additional plans to manufacture fiber broadband optical modules in the U.S. This makes the equipment eligible for use in the Broadband Equity, Access and Deployment (BEAD) program, which will distribute more than $42 billion dollars to U.S. states and territories for digital infrastructure.
Working alongside the Department of Commerce and in partnership with Fabrinet, a global manufacturer of precise optical products, Nokia will manufacture its next generation multi-rate optical modules for Optical Line Terminals (OLTs) at Fabrinet’s facility in Santa Clara, California. Production is set to begin in 2024, and the company said the development will bring additional high-tech jobs to the area.
State and territory funding allocations from BEAD were announced in late June. Now, states and territories must submit their five-year plans to the National Telecommunications and Information Administration (NTIA) to describe how they will use that funding to close the digital divide in their respective geographies. Each participating state was guaranteed at least $100 million in BEAD funding, as part of the Infrastructure, Investment and Jobs Act (IIJA) that became law in 2021 (See the state-level breakdowns here). Nineteen states will end up with more than $1 billion through BEAD for high-speed broadband deployment, with the stated requirement to connect every American by 2030.
BEAD deployments are expected to be fiber-heavy, and optical modules, which convert electrical signals into light and vice versa, are a key component of fiber broadband networks. Those seeking to participate in BEAD and the $42.45 billion of available funding allocated for broadband rollouts to unserved and underserved communities are required to use equipment manufactured in the U.S.
“Many in the industry have said that manufacturing optical modules in the U.S. was impossible. Today, we’re proving it can be done,” said Sandy Motley, president of Fixed Networks at Nokia, adding that company is “excited to add optical modules to the list of technology solutions that will be produced here in the U.S. and become available to programs like BEAD which are so critical to bridging the digital divide.”
This news comes not long after Nokia announced that it is on-shoring fiber-related electronics manufacturing and will produce a number of items needed for fiber deployment in Kenosha County, Wisconsin, through a partnership with local manufacturer Sanmina. Manufacturing these electronics will begin at the Sanmina Pleasant Prairie facility in 2024, which company officials and Commerce Department officials said should be right on time for use in BEAD-funded projects.
