T-Mobile and Ericsson reach $3.5 billion deal for 5G hardware and software

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After striking a $3.5 billion deal with Nokia earlier this year to help build a 5G network, T-Mobile has now announced a similar deal with Ericsson.

T-Mobile and Ericsson have reached a $3.5 billion agreement that’ll see Ericsson supply T-Mo with 5G New Radio (NR) equipment and software compliant with 3GPP standards. Also included in the multi-year deal are Ericsson’s digital services solutions, which include dynamic orchestration, business support systems (BSS) and Ericsson Cloud Core, which T-Mobile says it’ll use to “rapidly launch innovative and groundbreak 5G experiences to customers”.

Here’s Niklas Heuveldop, President and Head of Ericsson North America, on the deal:

“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.”

T-Mobile CTO Neville Ray had this to say about the agreement:

“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.”

T-Mobile plans to build out 5G coverage in 30 U.S. cities in 2018, including New York City, Los Angeles, Dallas, and Las Vegas, and it expects to have nationwide 5G coverage in 2020. T-Mo will use 600MHz and mmWave spectrum for its 5G network. As for when you’ll begin to see devices that can get on that 5G network, it’s expected that we’ll see the first 5G smartphones from T-Mobile in early 2019.

Source: T-Mobile

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  • Ver

    This is why it might not be such a good idea to buy a phone now.

    • vrm

      4G/LTE will be around for many years, even after 5G is deployed which itself may take years to deploy. We still have 2G and 3G deployed ! That was a decade after LTE was vogue.

    • Jay Holm

      2nd quarter of next year will be a good time to upgrade, also 7nm chips will be in smartphones at that time…. next year is going to be very, very interestiing!!?

    • slybacon

      My only thought is LTE phones sucked when they first came out. Slow and horrible battery life. I wouldn’t buy a “5G” phone until 2020.

      • gorilla

        Well, all phones sucked the time LTE was first rolled out. We only started getting decent phone like 2-3 years ago.

        • slybacon

          I bet you say that again about 5G phones 10 years from now when we get 6G internet.

    • riverhorse

      I said that last year about 600mhz, the year prior about 700mhz, this year about LAA n Band Aggregation / next year re faster modem, higher aggregation n 5G…
      Little by little I keep postponing… I’m prolly never gonna buy another phone!

    • John Doe

      Actually now is a perfect time to buy a phone with 600Mhz support and then upgrade to 5G in 2020. Standalone 5G (5G NR) is going to take a few years to deploy and also for the modem to be integrated in with the SoC. Right now Qualcomm only has a separate 5G modem that gets coupled with next year’s SoC. Manufacturers will also take a year to implement in correctly with their design so really 2020-2022 will be where all the 5G phones are at.

      • Jay Holm

        Hmm…..well I will upgrade to next year’s LG flagship anyway!