Nokia Networks and two other partners have won a 10-year deal to upgrade Spain’s railway communication system.
The Finland-based vendor, Siemens and Thales have secured a €339 million contract from Administrador de Infraestructuras Ferroviarias (Adif), Spain's national railway operator.
The contract is for the country’s high-speed train lines, which is the longest such network in Europe and the second longest in the world after China.
Nokia Networks will carry out the bulk of the work, which revolves around its Global System for Mobile Communications-Railway (GSM-R) platform.
The company updated the GSM-R last year, promising train operators it could handle a 40 percent increase in traffic.
It aims to reduce costs by replacing multiple analogue systems with a single digital radio equivalent.
Nokia remains the market leader in this area. Earlier this week, Alcatel-Lucent announced it had won a deal to supply the Beijing and Nanning Railway Bureaus with fibre technology.
The two companies agreed a €15.6 merger last month.
Nokia saw revenues grow 20 percent to €3.2 billion in the first quarter.
However, CEO Rajeev Suri labelled the performance of its core Networks division “unsatisfactory” after operating profits for the unit tumbled 61 percent.
Earlier this week, Nokia acquired self-organising networks solutions provider Eden Rock in an attempt to boost its own SON portfolio.
The company is promising some “big news” will be announced on 1 June, but has not elaborated further.