T-Mobile has announced that it will be joining forces with Nokia in a $3.5 billion deal to supply wireless users with its upcoming 5G network. Both firms released a joint statement on Monday confirming the deal, which is the biggest of its kind in the race to 5G connectivity worldwide.
The deal also comes just months after T-Mobile, who is currently the third-largest mobile carrier in the U.S., announced its merger with Sprint to become a better competitor in the wireless market against Verizon and AT&T.
Nokia, who hasn’t seen much growth in the past few years, is most likely getting the better end of this deal. Investors have shown a lot of discomfort in regards to Nokia’s continuing service in the existing 4G market, so a deal with one of the world’s most influential carriers is surely a good sign for its future.
5G networks promise to deliver faster speeds for mobile phone users and make networks more responsive and reliable for the eventual development of new industrial automation, medical monitoring, driverless car and other business uses.
The deal’s details
Terms of the deal call for Nokia to supply a range of 5G hardware, software and services that will allow T-Mobile to capitalize on licensed airwave to deliver, broad coverage on 600 megahertz spectrum and ultra high-speed capacity on 28 gigahertz airwaves in densely trafficked urban areas, the companies said.
Nokia will supply T-Mobile with its AirScale radio access platform along with cloud-connected hardware, software and acceleration services.
The network equipment business, which is led by three big players – China’s Huawei HWT.UL, Nokia and Sweden’s Ericsson – has struggled with flagging growth since the current generation of 4G mobile equipment peaked in 2015.