Strategic agreement between AT&T and the Swedish telecommunications group, Ericsson. The two companies will collaborate to modernize the wireless network in the United States, deploying large-scale open radio access networks for commercial purposes. Mainly the goal is to enhance the wireless network in North America and expand the more reliable 5G network.
AT&T indicated that the expense for the project, lasting five years, could reach about 14 billion of dollars.
The partnership represents thelargest deal ever made in the history of Ericsson.
AT&T's Open Ran plan
AT&T is busy with the Open RAN plan that, by the end of 2026, the 70% of wireless network traffic flow on platforms with open architecture.
AT&T, a leading infrastructure investor in the United States, focuses its strategy on Open RAN as an essential part of providing seamless connectivity in the country. With significant investments in both wireless and fiber for broadband, AT&T aspires to become the leading converged provider of fiber services, driving rapid growth with a modern, competitive wireless network.
Starting in 2024, the company plans to implement open RAN sites fully integrated in collaboration with Corning Incorporated, Dell Technologies, Ericsson, Fujitsu and Intel.
The agreement between AT&T and Ericsson will serve to implement Open RAN in the context of5G innovation. Moving to an open, agile and programmable wireless network will allow AT&T to quickly adopt the next generation of wireless technology and take advantage of available radio spectrum. Innovative technologies will facilitate the creation of sustainable, low-power networks, offering superior performance to improve user experience.
Ericsson will provide 5G solutions and products
Ericsson will provide one wide range of products and solutions, called Ericsson 5G Open Radio Access Networks, to support the development of AT&T's Open RAN networks in the United States. Manufacturing of the 5G equipment for this contract will take place at 5G Smart Factory by Ericsson in Lewisville, Texas.
La Smart Factory, inaugurated in 2020, is highly automated, efficient and powered entirely by renewable electricity. Recently, it was expanded and currently covers over 9.900 m² of production area.
The advanced facility is dedicated to producing next-generation 5G Radio and Advanced Antenna System technology for Ericsson's US customers.
Ericsson also became the leading mobile infrastructure provider to comply with Build America Act, Buy America. Ericsson's factory products are labeled “Made in America” because the company's structure complies with this infrastructure law.
Currently, Ericsson operates about two-thirds of AT&T's network in the United States, while the remainder is managed by rival Nokia.
Sambar, AT&T: “leading company in open platform sourcing”
“AT&T is hiring a leading role in open platform sourcing of our wireless network. With this collaboration, we will open radio access networks, spur innovation, competition, and connect more Americans with 5G and fiber. We are pleased that Ericsson shares our support for Open RAN and the possibilities it creates for America's digital infrastructure,” commented Chris Sambar, Executive Vice President of AT&T Network.
"The high-performance and differentiated networks they will be the basis for the next step of digitalisation. I am excited about this future and happy that our long-time partner, AT&T, has chosen Ericsson for this strategic shift for the industry: moving to open, cloud-based, programmable networks. Thanks to this shift, open interfaces and open APIs we will see new performance-based business models, which create new ways for operators to monetize the network. We are truly proud to partner with AT&T in industrializing Open RAN and helping accelerate digital transformation in the United States,” said Börje Ekholm, President and CEO of Ericsson.
