Nokia and T-Mobile Sign US$ 3.5 Billion Deal for 5G Network


While T-Mobile will use the deal to offer first 5G services to the US, Nokia will use the same to boost its output that has been flagged from 4G generation

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Finnish smartphone giant, Nokia, has entered a deal worth US$ 3.5 billion with American network operator, T-Mobile, for the development of next-generation, 5G technology. This partnership has become the world’s largest 5G deal till date.

Nokia supplies will help T-Mobile offer first 5G services to the US

T-mobile, which is trailing behind U.S telecom majors Verizon and AT&T, said that the multiyear supply deal with Nokia will help the US enjoy the first-ever nationwide 5G services. Earlier in April, T-Mobile had agreed to a merger with Sprint to create a stronger rival to Verizon and AT&T.

According to the deal, Nokia will be supplying 5G hardware, software and services to T-Mobile that will allow the latter to capitalise on licensed airwave to generate, broad coverage on 600-megahertz spectrum and ultra-high-speed capacity on 28 gigahertz airwaves in heavily trafficked urban regions, both the companies stated.

The companies also added that Nokia will supply the American network operator with its AirScale radio access platform along with cloud-connected hardware, software and acceleration services.

5G networks make networks more responsive and reliable for the eventual creation of a new industrial automation, medical monitoring, driverless car and other business benefits.

Nokia looks to make full use of the deal

Nokia has been suffering from poor output over many years due to sluggish demand for existing 4G networks and growing investor doubts over the ability of 5G contracts to enhance the profitability in the later of the current year.

Although 5G networks promise faster Internet speeds, cash-strapped telecom operators all over the world have been sceptical about adopting commercial upgrades of existing networks, with several viewing 5G technology to generate incremental capacity increases instead of new features.

China’s Huawei, Nokia and Sweden’s Ericsson have all struggled with sluggish growth since the existing 4G generation saw a surge in 2015.