Published: Thu, September 13, 2018
Technology | By Lionel Gonzales

Ericsson, T-Mobile ink $3.5 bn deal to facilitate 5G deployment

Ericsson, T-Mobile ink $3.5 bn deal to facilitate 5G deployment

T-Mobile seems to be all in on 5G networks, and its recent investments make that clear. Add it up and T-Mobile is investing $7 billion in 5G between the two companies. 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.

The deal will see Ericsson support T-Mobile's nationwide 5G rollout, supplying the latest 5G New Radio (NR) hardware and software.

Ericsson and T-Mobile announced a multi-year, $3.5 billion contract to support T-Mobile's nationwide 5G network deployment, today. Verizon will also have a 5G phone around that time thanks to the 5G Moto Mod for the Moto Z3.

As allotment the Nokia settlement, T-Cell acknowledged it would use Nokia's 5G network technology in conjunction with instrument, companies and products and hardware. But for both carriers, there's a catch: 5G will only be available for home internet - mobile won't happen until 2019 at the earliest.

Niklas Heuveldop, President and Head of Ericsson North America, said that the company had recently made a decision to increase its investments in the U.S. to be closer to customers and better support them with their accelerated 5G deployments; thereby bringing 5G to life for consumers and enterprises across the country.

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Ericsson would also provide its digital services solutions to T-Mobile, including dynamic orchestration, business support systems (BSS) and Ericsson Cloud Core for faster 5G deployment, Ericsson said. (NYSE: S) earlier this year, but the proposed tie-up has yet to secure the approval of U.S. competition authorities. "Together with our partners we are continuing to prove the readiness of both the underlying technology and the ecosystem".

Heidi Adams, senior research director, IHS Markit, said: "Mobile transport infrastructure is critical for securing peak 5G radio performance and enabling the promise of new 5G services". AT&T also announced a successful 5G data transfer in Waco, Texas over millimeter wave using standards-based, production equipment with a mobile form factor device, utilizing a Qualcomm Technologies' smartphone form factor test device and Ericsson 5G-NR capable radios.

Ericsson ranks as the largest supplier of mobile network technology ahead of Nokia.

And there are still hurdles to overcome, not least 5G's limited range and penetration.

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