(Comments, Details on Ericsson, Industry, and US Context)
LONDON, March 20 / PRNewswire / – T-Mobile US has provided Nokia with $ 3.5 billion in the next generation of 5G power supplies largest 5G deal so far and clear evidence that a new wireless update cycle is beginning to take root.
T-Mobile, the third largest US mobile operator, said on Monday that the Nokia deal would help deliver the first nationwide 5G services in the US, where T-Mobile agreed to merge with Sprint in April to create a more serious one To create rivals against US telecom giants Verizon and AT & T.
The T-Mobile award is crucial for Nokia Demand for existing 4G networks is slowing and investors' doubts about whether the 5G contracts will increase profitability later this year are declining.
"This is our biggest deal to date, Phil Twist," said Nokia's Global Marketing Chief in Int view, "reinforcing the fact that we will launch 5G in Q3 and ramp up in Q4."
5G- Networks promise faster speeds for mobile phone users, making networks more responsive and reliable for the later development of new industries Automation, Medical Surveillance, Driverless Car, and Other Business Applications
But financially strained telecom operators around the world shied away from commercial upgrades to existing networks Many see 5G technology as just a way to increase capacity rather than new functionality.
The terms of the new agreement provide for Nokia to offer a range of 5G hardware, software and services. that enable T-Mobile to profit from licensed airwaves to achieve broad coverage of the 600 megahertz spectrum. Www.munichre.com / de / ts / life_and_hea … default.aspx The speed capacity at 28 gigahertz ̵
However, customers do not notice a noticeable difference in terms of speed Speeds or other features until the first 5G enabled smartphones hit the market in early 2019. Even then, for technical and economic reasons, the fully equipped 5G phones will not be mainstream until 2020, according to the analysts.  Nokia said it will supply T-Mobile with its AirScale radio access platform and cloud-connected hardware, software and acceleration services, the two companies said.
T-Mobile said in February that it would work with both Nokia and the competing network Ericsson from Sweden is building 5G networks in 30 cities in the US in 2018.
Ericsson was not immediately available to comment on where he completed his previously announced plans to deliver 5G networks in New York, Los Angeles and Las Vegas
As Nokia announced earlier this year its plans with T-Mobile It said it had focused on Dallas and other unnamed "densely populated areas of the country". No details were provided on which cities could be covered by the trade agreement on Monday.
WAITING FOR 5G
Nokia delivered lower profits in the first two quarters of 2018, but pledged to reach its annual targets as demand picks up later this year. The company reiterated its outlook after the T-Mobile deal and said it was fully included in its existing guidance.
Nokia traded at the Helsinki Stock Exchange 1.3 percent to 4.76 euros. The T-Mobile share rose more moderately on the Nasdaq.
The network equipment business, led by China's Huawei, Nokia and Ericsson, has seen slowing growth as demand for the current generation of 4G mobile devices peaked in 2015.
Network Providers are betting on the rivalry between the four major US mobile operators to drive their first 5G purchases this year. South Korea and Japan will launch commercial 5G rollouts in the first half of 2019, followed by China, the world's largest mobile market, later next year, followed by Middle East operators starting in 2020.
T-Mobile and Sprint, use 5G, to win President Donald Trump's support for their merger, which will reduce the US mobile market from four to three players.
They argue that the combined company is the US's best hope for nationwide 5G services. This, in turn, can help the country maintain its technology leadership in China.
T-Mobile has forecast investment in new equipment of around $ 5 billion in 2018. T-Mobile Chief Technology Officer Neville Ray said in the joint statement that the dollar it will spend from now on will be on 5G-related equipment. (Reporting by Eric Nachard in London, edited by Louise Heavens and Jane Merriman)