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Ericsson has bagged $3.5 billion 5G network contract from this company

13 September, 2018, 19:11 | Author: Rafael Roberts
  • T-Mobile bolster 5G ambitions with $3.5 billion supplier deal with Ericsson

There is likely to be a bit of a PR arms race over big 5G deal wins among the kit vendors, but we won't be seeing any of that action from Huawei in the US. The new agreement is worth exactly as much as the one done with Nokia back in July, and it seems to have the same objective as well.

"While the other guys just make promises, we're putting our money where our mouth is".

As the U.S. races toward commercial 5G services, Ericsson achieves significant milestones with AT&T, Verizon and T-Mobile on the road to making 5G a reality for consumers.

T-Mobile has reached a $3.5 billion deal with Ericsson for 5G network equipment, allowing the self-styled "un-carrier" to press ahead with its plans for a nationwide rollout in the US. Verizon will also have a 5G phone around that time thanks to the 5G Moto Mod for the Moto Z3. For the test held in Waco, Texas, AT&T engineers used a smartphone with integrated Qualcomm Snapdragon X50 5G modem and RF subsystem and Ericsson 5G-NR capable radios to connect to AT&T's virtual 3X standards compliant system.

T-Mobile will leverage Ericsson's 5G portfolio to expand existing LTE capacity needs while preparing the network for the next generation of technology. (NYSE: S) earlier this year, but the proposed tie-up has yet to secure the approval of USA competition authorities.

The Ericsson agreement is the company's second recent multi-billion dollar 5G deal. "Together with our partners we are continuing to prove the readiness of both the underlying technology and the ecosystem". In August, the two companies claimed the first successful transmission of a 3GPP NR 5G signal to a receiver situated in a moving vehicle.

Under its own 5G deal with T-Mobile, Nokia said it would provide radio platforms, core network technology and management systems, offering support for the 600MHz frequencies T-Mobile acquired in last year's auction as well as much higher 28GHz spectrum.

While the 5G rhetoric is beginning to pall, it's at least a measure of the industry's excitement about the technology - which it hopes will translate into customer sign-ups, loyalty, and new revenue streams.

The company's Ericsson Mobility Report says nearly half of all mobile subscriptions in North America will be for 5G by the end of 2023.

While Nokia's performance has come as a disappointment to shareholders so far in 2018 - with earnings marked by a fall in profitability - CEO Rajeev Suri has continued to insist that 5G business will start to buoy figures toward the end of the current financial year.


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