Finnish network equipment manufacturer Nokia on Monday (July 30) announced it has signed a multi-billion-euro, multi-year 5G agreement with T-Mobile, the third largest wireless carrier in the United States.
The agreement is worth a whopping $3.5 billion, marking the world’s largest 5G deal so far. 5G networks are the next generation of mobile internet connectivity, promising to deliver faster download speeds and to help power a huge rise in Internet of Things technology, providing the infrastructure needed to carry huge amounts of data.
"We are all in on 5G," said Neville Ray, Chief Technology Officer at T-Mobile, which recently agreed to a merger with Sprint to take on its rivals Verizon and AT&T. "Every dollar we spend is a 5G dollar, and our agreement with Nokia underscores the kind of investment we're making to bring customers a mobile, nationwide 5G network. And together with Sprint, we'll be able to do So. Much. More.”
As part of the agreement, Nokia will help build T-Mobile's first nationwide 5G network by providing technology, 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.
“It’s our largest 5G deal to date, and in fact, one of the largest deals Nokia’s ever signed,” Phil Twist, vice president for marketing at Nokia’s Mobile Networks unit, told Bloomberg “This underlines and makes concrete that 5G is coming to the market.”
Nokia and T-Mobile will advance the large-scale deployment of 5G services throughout the United States," said Ashish Chowdhary, Chief Customer Operations Officer, Nokia. "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."
“Nokia and T-Mobile will develop, test and launch the next generation of connectivity services that will cover a wide range of industries, including enterprise, smart cities, utilities, transportation, health, manufacturing, retail, agriculture and government agencies,” the companies said.
When news of the T-Mobile deal became public, Nokia shares rose as much as 2.5 percent
Nokia is the oldest company listed under the same name on the Helsinki Stock Exchange, beginning in 1915. The Finnish company, founded in 1865, employees approximately 102,000 people across over 100 countries, does business in more than 130 countries.
T-Mobile US was founded in 1994 as VoiceStream Wireless PCS. The company's majority shareholder is the German telecommunications giant Deutsche Telekom (DT). Based in Bellevue, Washington,USA, T-Mobile US has around 51,000 empoyees and 74 million customers as of Q1 2018. In 2013 the company went public on the NASDAQ stock exchange.