Published: Thu, September 13, 2018
IT&Software | By Alfonso Woods

Ericsson inks $3.5 billion 5G deal

Announced in quick succession, the two 5G deals mean T-Mobile, which operates the third-biggest mobile network in the USA, will spend at least $7 billion on 5G deployment with Europe's two main network equipment vendors. Between deals with Ericsson and Nokia, T-Mobile has now invested $7 billion into expediting its nationwide 5G rollout. "We are excited about our partnership with T-Mobile, supporting them to strengthen, expand and speed up the deployment of their nationwide 5G network".

Ericsson, which makes mobile network gear, will provide T-Mobile with certain digital and business support systems as.

Meanwhile, Ericsson was upbeat on its 5G investment decisions and this new deal, too.

As part the Nokia agreement, T-Mobile said it would use Nokia's 5G network technology including software, services and hardware.

T-Cell and Ericsson have signed a $Three.5 billion settlement to manufacture out T-Cell's 5G infrastructure.

Bridging from a nationwide LTE Advanced network to 5G, T-Mobile will leverage Ericsson's market-leading 5G portfolio to expand existing LTE capacity needs while future-proofing the network, the company said.

In July, the company warned that Europe might be falling behind North America, when it comes to adopting 5G technologies.

5G networks are the next generation of mobile internet connectivity, offering faster speeds and more reliable connections on smartphones and other devices than ever before.

All four major USA operators have advanced 5G roadmaps with the first services due to go live later this year.

From T-Mobile's announcements, it seems the operator will be dividing the labor and dual sourcing from the two companies equally, buying both hardware and software compliant with global standards from Ericsson and Nokia. It, too, was for 5G technology, software and services.

Both European vendors have undoubtedly benefited from the United States clampdown on Chinese rivals Huawei Technologies Co.

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.

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.

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