T-Mobile shares rise amid 5G deal with Ericsson
T-Mobile shares are higher Tuesday, as the US wireless network operator announced it had signed a new 5G deal with Swedish telecoms business, Ericsson. This is the biggest 5G deal so far, for network gear maker Ericsson and is worth some $3.5 billion.
By 1655 GMT, T-Mobile shares were 0.47% higher at $65.87. The stock has been a little mixed in recent activity.
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T-Mobile, Ericsson deal
T-Mobile has selected Ericsson as one of the telecoms firms to support its 5G roll out plans. The deal is a multi-year one and will see the Swedish company provide T-Mobile with 5G New Radio (NR) hardware and software compliant with 3GPP standards.
“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 – and with Sprint we can supercharge the 5G revolution,” said T-Mobile’s chief technology officer, Neville Ray.
Indeed, this deal follows one the US wireless operator made with Nokia, earlier in the year.
Meanwhile, Ericsson was upbeat on its 5G investment decisions and this new deal, too.
“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. We are excited about our partnership with T-Mobile, supporting them to strengthen, expand and speed up the deployment of their nationwide 5G network,” he added.
5G infrastructure upgrade
T-Mobile is moving ahead quickly with its plans to upgrade it wireless systems to the next level of 5G. Surpassing 4G with its download speeds and reliability, this investment push into 5G is no doubt designed to help encourage greater user growth at T-Mobile.
Ericsson is an unsurprising choice for T-Mobile’s 5G upgrade plans as the US operator’s existing Ericsson Radio systems radios will also be able to run on the upgraded 5G system, with only a remote software installation.