Nokia and T-Mobile reveal major 5G tie-up

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In the largest 5G deal so far, T-Mobile has announced that Finnish network equipment maker Nokia will supply it with $3.5bn in 5G networking gear.

The third largest telecom in the US, which recently agreed to a merger with Sprint to take on its rivals Verizon and AT&T, said that the multiyear supply deal with Nokia will allow it to deliver the first nationwide 5G services.

As demand for existing 4G networks has slowed in recent years, the deal with T-Mobile is a big boost for Nokia and marks the beginning of the next wireless upgrade cycle. 5G networks will deliver faster speeds for mobile users and will be the backbone of driverless cars, automation and other connected technologies.

However, telecoms around the world have been hesitant about committing to commercial upgrades to their existing networks as many see 5G technology as a way of boosting capacity incrementally as opposed to offering new features. 

According to the terms of the deal, Nokia will supply a range of 5G hardware, software and services that will allow T-Mobile to deliver broad coverage using the 600 megahertz spectrum and ultra high-speed capacity on 28 megahertz airwaves in urban areas.

The network equipment maker will supply the US telecom with its AirScale radio access platform, cloud-connected hardware, software and acceleration services to aid in the rollout of its 5G network.

Chief Customer Operations Officer at Nokia,  Ashish Chowdhary explained how its technology will allow T-Mobile to make its 5G network a reality in a statement, saying:

"Nokia and T-Mobile will advance the large-scale deployment of 5G services throughout the United States. This is a testament to our companies' strong and productive working relationship, one which has produced several important technological milestones in recent months, and which now allows us to make 5G a commercial reality."

Image Credit: Kārlis Dambrāns