Mobile, Nokia sign $3.5-billion deal on 5G network equipment


T-Mobile, the third biggest US mobile carrier, said on Monday the Nokia deal would help to deliver the first nationwide 5G services in the United States, where T-Mobile in April agreed to a merger with Sprint to create a more formidable rival to USA telecom giants Verizon and AT&T.

T-Mobile's chief technology officer, Neville Ray, said that the deal "underscores the kind of investment we're making to bring customers a mobile, nationwide 5G network".

Nokia's portfolio includes commercial AirScale radio platforms and cloud-native core, AirFrame hardware, CloudBand software, SON and 5G Acceleration Services. There have been no smartphones announced with 5G capabilities - yet - but vendors like Qualcomm and Intel have already announced their 5G modems that will be going into future devices. And together with Sprint, we'll be able to do So.

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The deal reportedly puts the carrier, along with Nokia, first in line to deliver 5G nationwide.

T-Mobile put a dollar figure against its 5G plans, announcing that it will pay $3.5 billion to Nokia over the coming years to deploy 5G equipment.

From a business perspective, 5G will be used for "the eventual development of new industrial automation, medical monitoring, driverless vehicle and other business uses", as Reuters reports.

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The launch of 5G is set to offer a whole host of enhancements including faster speeds, better connectivity, longer battery-life as well as a more reliable network for customers. Nokia's fortunes have been on a downward turn in recent years, as demand for 4G network equipment has slowed.

The deal, which follows earlier announcements about their cooperation, is welcome news for the Finnish company. The deal would allow the combined entities to draw closer to the revenue volume of Verizon Wireless and AT&T Mobility, which would remain the two largest USA mobile carriers.

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