Published: Thu, September 13, 2018
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Mobile inks $3.5 billion deal with Ericsson for 5G equipment

Mobile inks $3.5 billion deal with Ericsson for 5G equipment

Announced in quick succession, the two 5G deals mean T-Mobile, which operates the third-biggest mobile network in the U.S., will spend at least $7 billion on 5G deployment with Europe's two main network equipment vendors. On Tuesday, the nation's third largest wireless provider matched that investment through a similar agreement with Ericsson. The deal is a multi-year one and will see the Swedish company provide T-Mobile with 5G New Radio (NR) hardware and software compliant with 3GPP standards.

The agreement also adds Ericsson's digital services solutions, including dynamic orchestration, business support systems (BSS) and Ericsson Cloud Core, helping T-Mobile take 5G experiences to the market.

T-Mobile Chief Technology Officer Neville Ray said that while the other guys just make promises, T-Mobile is putting its money where its mouth is.

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

Niklas Heuveldop, President and Head of Ericsson North America, said that the company had recently made a decision to increase its investments in the USA 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.

In July, the company warned that Europe might be falling behind North America, when it comes to adopting 5G technologies. (NYSE: S) earlier this year, but the proposed tie-up has yet to secure the approval of United States competition authorities.

T-Mobile will leverage Ericsson's 5G portfolio to expand existing LTE capacity needs while preparing the network for the next generation of technology.

Kit vendor Ericsson has announced a major deal win in the form of a $3.5 billion contract to bring TMUS into the 5G era.

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

ERS now supports spectrum sharing which allows operators to power 4G and 5G services within the same spectrum band simultaneously.

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

Commenting ahead of the demonstration, Fredrik Jejdling, executive VP and head of Networks at Ericsson, said: "This accomplishment shows that 5G is ready for business".

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