T-Mobile (NASDAQ: TMUS), a telecom giant owned by Germany’s Geutsche Telekom, just awarded Nokia USD 3.5 Billion in a milestone deal to accelerate its development of 5G technology. So far, this is the world’s largest 5G deal and the only deal with perceptible evidence. In this multiyear deal, Nokia is to provide T-Mobile with the nation’s first complete 5G network. 5G technology is supposed to provide consumers with faster speeds, massive connectivity and more reliable networks for potential future development of medical monitoring, virtual and augmented reality experiences, industrial automation, vehicle automation among other business uses. Other companies have been hesitant to commit to developing a 5G network as many view it as an upgrade in the capacity of the existing 4G network without tangible new features. AT&T and Verizon have launched their own pre-packaged “5G network” deals which T-Mobile has accused of being fake 5G. “T-Mobile is the first company to commit to building a nationwide 5G network. And yes, that’s real 5G, not fake 5G! And that’s nationwide mobile 5G, not fixed 5G,” T-Mobile’s Chief Technology Officer, Neville Ray, asserted.
Nokia has been facing decline, they confirmed last week that it’s second quarter revenues dropped, due to decelerating demand for 4G networks. After the T-Mobile deal, it increased by 1.5%. The deal between T-Mobile and Nokia includes the development of a 5G network compatible with the 3GPP 5G New Radio standards, T-Mobile’s network will include broad coverage on a 600MHz spectrum and high-speed 28GHz millimeter airwave capabilities.
Nokia’s Chief Customer Operations Officer, Ashish Chowdhary, said in a press release "Nokia and T-Mobile will advance the large-scale deployment of 5G services throughout the United States,” adding, “this is a testament to our companies’ strong and productive working relationship, one which has produced several important technological milestones in recent months, and which now allows us to make 5G a commercial reality.”