Nokia Corp. on Monday said that it has been awarded a $3.5 billion contract from T-Mobile US Inc. to accelerate the deployment of a nationwide fifth-generation network.
As part of the deal, Nokia will help build T-Mobile's 5G network by providing technology, software and services, Efe quoted a report in Dow Jones Newswire as saying.
Separately, Nokia said Monday's deal has no effect on its recently announced full-year guidance as the contract was already included, the report added.
"We are all in on 5G. Every dollar we spend is a 5G dollar, and our agreement with Nokia underscores the kind of investment we're making to bring customers a mobile, nationwide 5G network. And together with Sprint, we'll be able to do So. Much. More," Neville Ray, Chief Technology Officer at T-Mobile said in a statement.
The Finnish network-equipment vendor said last week that operators looking to build next-generation networks are pressuring prices as they try to fund the upgrades within their existing budgets.
Speaking on a media call after the company released its second-quarter earnings last week, Chief Executive Rajeev Suri said Nokia isn't experiencing price pressure at its networks business from competition, but rather that some operators are trying to fund the early adoption of fifth-generation networks within existing budgets instead of increasing their resources.
The companies didn't disclose the length of the agreement.
T-Mobile will leverage multiple products across Nokia‚Äôs end-to-end 5G technology, software and services portfolio, including commercial AirScale radio platforms and cloud-native core, AirFrame hardware, CloudBand software, SON and 5G Acceleration Services.
Using 5G, Nokia and T-Mobile will develop, test and launch the next generation of connectivity services that will cover a wide range of industries, including enterprise, smart cities, utilities, transportation, health, manufacturing, retail, agriculture and government agencies.
A T-Mobile spokesman said the plan was already baked into the company's capital spending forecast and doesn't replace Ericsson AB, which also sells gear to the wireless operator.