Published: Thu, August 02, 2018
Industry | By Dora Warner

Mobile, Nokia sign $3.5 billion 5G network deal

Mobile, Nokia sign $3.5 billion 5G network deal

According to the contract, Nokia will supply T-Mobile with hardware, software and services that will allow the carrier to provide 5G signals over its 600MHz low-frequency spectrum and provide "ultra-high speed" service in urban markets using 28GHz millimeter wave channels.

Phil Kendall, executive director at Strategy Analytics, earlier said the 5G deployment and adoption will be the main merger benefit for United States consumers, though everything comes at a cost.

T-Mobile, which is the third-largest operator in the USA behind Verizon and AT&T, agreed to merge with rival Sprint in April.

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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.

Nokia on Monday followed up the announcement by reiterating its outlook for 2018.

The new 5G partnership with T-Mobile marks the largest gain by Nokia to-date, with Nokia touting the strength of its productive working relationships with other companies.

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The companies said that, along with faster speeds and more connectivity, 5G will also help to enable on-demand virtual and augmented reality experiences, driverless vehicles, medical monitoring and advanced industrial automation services.

The two companies have agreed to develop, test and launch the next generation of connectivity services, targeting smart cities, government agencies and industries like utilities, transportation, health, manufacturing, retail and agriculture. 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.

T-Mobile had said earlier that its customers in New York, Los Angeles, Dallas and Las Vegas will be the first to access 5G technology services in early 2019.

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