T-Mobile and Ericsson have signed a $3.5 billion agreement to build out T-Mobile's 5G infrastructure. As part of the multi-year deal, T-Mobile -- the nation's third largest mobile carrier -- will deploy Ericsson's Radio System portfolio, including 5G New Radio and NR hardware and software compliant with 3GPP standards.
According to the companies, the contract also encompasses Ericsson's digital services solutions, including dynamic orchestration, business support systems or BSS, and Ericsson Cloud Core. Meanwhile, T-Mobile's already installed base of Ericsson Radio System radios will be able to run 5G NR technology via remote software installation.
"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," said Niklas Heuveldop, president and head of Ericsson North America. "This agreement marks a major milestone for both companies."
T-Mobile and Ericsson rival Nokia also announced a $3.5 billion 5G deal back in July. Add it up and T-Mobile is investing $7 billion in 5G between the two companies.
As part the Nokia agreement, T-Mobile said it would use Nokia's 5G network technology including software, services and hardware. The carrier also said Nokia would help make its "600 MHz and 28 GHz millimeter wave 5G capabilities compliant with 3GPP 5G New Radio (NR) standards" -- echoing its current plans with Ericsson.
Ericsson ranks as the largest supplier of mobile network technology ahead of Nokia.
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