T-Mobile and Ericsson join forces with $3.5 billion 5G agreement
13 September, 2018, 19:16
Swedish telecom gear maker Ericsson has bagged a multi-year 5G network deployment contract worth $3.5 billion with the USA carrier T-Mobile. On Tuesday, the nation's third largest wireless provider matched that investment through a similar agreement with Ericsson.
As part of the agreement, Ericsson will update T-Mobile with the latest 5G New Radio (NR) software and hardware compliant with 3GPP standards.
The contract also included access to a number of Ericsson's digital service solutions such as dynamic orchestration, business support systems (BSS) and Ericsson Cloud Core.
Neville Ray, Chief Technology Officer, T-Mobile, says: "While the other guys just make promises, we're putting our money where our mouth is".
Ericsson said that T-Mobile's already installed base of Ericsson Radio System radios will be able to run 5G NR technology with simple remote software installation.
The deal comes amid a flurry of 5G activity in the U.S. market, where all four of the nationwide mobile networks are gearing up for investment in the next-generation technology. This agreement marks a major milestone for both companies. Add it up and T-Cell is investing $7 billion in 5G between the two companies.
Fredrik Jejdling, Executive Vice President and Head of Networks at Ericsson, says: "This accomplishment shows that 5G is ready for business".
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.
Although still a work in progress, and still lacking official standards or regulation, 5G networks are expected to launch across the world by 2020, working with existing 3G and 4G networks to provide businesses and consumers alike with speedier connections that stay online no matter where you are. "Together with our partners we are continuing to prove the readiness of both the underlying technology and the ecosystem". "This successful over-the-air test using the band that will offer 5G services in North America, also demonstrates the network and ecosystem readiness we have achieved". "I'm super proud of the team for achieving a multi-vendor 3GPP-based 5G data call using Ericsson's commercial radios and Intel's RF chip".
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