Nokia (NYSE:NOK) CEO Pekka Lundmark demonstrated a groundbreaking new technology in a recent phone call that promises to revolutionize the quality of voice calls.

Dubbed "immersive audio and video," this innovation enhances call quality with three-dimensional sound, making interactions more lifelike, the company announced on Monday.

"We have demonstrated the future of voice calls," said Lundmark, who was also present in the room during the first 2G call in 1991.

The new technology promises a substantial improvement over current monophonic smartphone calls, which compress audio elements, resulting in flatter and less detailed sound.

In contrast, 3D audio enables callers to experience sound as if they were physically present with the other person.

Jenni Lukander, president of Nokia Technologies, hailed the innovation as "the biggest leap forward in the live voice calling experience since the introduction of monophonic telephony audio used in smartphones and PCs today."

The call was made using a regular smartphone over a public 5G network, with Stefan Lindström, Finland's Ambassador of Digitalisation and New Technologies, on the other end.

"This is now becoming standardized," Lukander noted in an interview. "So the network providers, chipset manufacturers, and handset manufacturers can begin to implement it in their products." 

The immersive audio and video technology is part of the upcoming 5G Advanced standard.

Nokia aims to capitalize on licensing opportunities for this technology, although it may take a few years before it becomes widely available.