T-Mobile and Ericsson sign major $3.5 billion 5G agreement

Ericsson and T-Mobile announced a multi-year, $3.5 billion contract to support T-Mobile’s nationwide 5G network deployment. Under the deal, Ericsson will provide T-Mobile with the latest 5G New Radio (NR) hardware and software compliant with 3GPP standards.

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 contract also encompasses Ericsson’s digital services solutions, including dynamic orchestration, business support systems (BSS) and Ericsson Cloud Core, enabling T-Mobile to rapidly launch innovative and groundbreaking 5G experiences to customers.

Neville Ray, Chief Technology Officer, T-Mobile, says: “While the other guys just make promises, we’re putting our money where our mouth is. With this new Ericsson agreement we’re laying the groundwork for 5G – and with Sprint, we can supercharge the 5G revolution.”

Niklas Heuveldop, President and Head of Ericsson North America, says: “We have recently decided to increase our investments in the US to be closer to our leading customers and better support them with their accelerated 5G deployments; thereby bringing 5G to life for consumers and enterprises across the country. This agreement marks a major milestone for both companies. We are excited about our partnership with T-Mobile, supporting them to strengthen, expand and speed up the deployment of their nationwide 5G network.”

5G promises to deliver very high data speeds, extremely low latency, ultra-high reliability, energy efficiency and extreme device densities, which will be realized by the development of LTE in combination with new radio-access technologies.

Under the terms of the new deal, Ericsson will supply hardware and software from its market-ready 5G Platform, which includes its strengthened Ericsson Radio System portfolio, across all spectrum bands available to T-Mobile. Additionally, T-Mobile’s already installed base of Ericsson Radio System radios will be able to run 5G NR technology with simple remote software installation.