Swedish telecommunication group Ericsson has signed an $8.3 billion worth 5G contract with American multinational telecommunications conglomerate Verizon.
This is Ericsson’s biggest deal ever to be signed.
Through this deal Ericsson hopes to expand Verizon’s 5G network in the United States by providing various innovative solutions.
“This is a significant strategic partnership for both companies and what we’re most excited about is bringing the benefits of 5G to consumers, enterprises and the public sector,” Niklas Heuveldop, President of Ericsson in North America said.
“We’re looking forward to working with Verizon to leverage solutions like Cloud RAN and our Street Macro, adding depth and versatility to 5G network rollouts across the U.S.”
WHAT IS 5G?
In telecommunications, 5G or fifth generation is a technology for cellular networks. It is the planned successor of the fourth generation technology, popularly known as 4G.
These technologies provide connectivity, network and services to our devices. 5G is said to be more efficient. Its designed to provide faster download and upload speed with a low latency period.
Global System for Mobile Communications Association (GSMA) has reported that 5G networks are projected to cross 1.7 billion subscribers globally by the end of 2025.
The ban and restrictions imposed on Chinese telecommunication corporations such as Huawei has benefited Ericsson and several other companies as well, one such is Nokia.
Nokia recently won a deal to supply 5G network equipment and services to the United Kingdom after the nation restricted the use of Huawei equipment over national security reasons.
The country has given all the companies time up to 2027 to remove all Huawei equipment from 5G network installations. This swap is expected to burn at least $643 million.