LONDON – T-Mobile USA (TMUS.O) called Nokia (NOKIA.HE) to deliver it with $ 3.5 billion in next-generation 5G networking equipment, said the companies on Monday, marking the world's largest 5G deal so far and concrete evidence of a new wireless upgrade cycle that's rooted.
No.3 US mobile operator T-Mobile – agreed in April to merge with Sprint (SN) to create a more formidable competitor to US telecom giants Verizon (VZ. N) and AT & T (TN) that multi-year delivery agreement with Nokia will deliver the first nationwide 5G services.
The T-Mobile Prize is critical for Finland's Nokia, whose results have been turned down for many years with reduced demand for existing 4G networks and investment issues as to whether 5G contracts can begin to increase profitability later this year.
5G networks promise to deliver faster speeds for mobile phone users and make networks more responsive and reliable for the ever-evolving new industrial automation, medical monitoring, driverless cars and other business applications.
But telecom operators around the world have been excited to commit to commercial upgrades of existing networks. Many see 5G technology just as a way to deliver incremental capacity increases instead of new features.
Terms of the agreement call Nokia to deliver a variety of 5G hardware, software and services that enable T-Mobile to capitalize on licensed airwave to deliver wide coverage of 600 megahertz spectrum and ultra high speed capacity of
Nokia will deliver T-Mobile with its AirScale radio access platform along with cloud-connected hardware, software and acceleration services, they said in a statement.
The network equipment business, headed by three major players ̵
Reporting by Eric Auchard in London, Editing of Louise Heavens