Nokia and T-Mobile US agree $ 3.5 billion deal, the world's first 5G grand prize

LONDON (Reuters) – T-Mobile US ( TMUS.O ) named Nokia ( NOKIA.HE ) to provide $ 3.5 billion in 5G network hardware Next-generation companies said Monday, marking the world's biggest 5G deal to date and concrete evidence of a new wireless upgrade cycle taking root.

No.3 The US mobile T-Mobile – which has accepted in April a merger with Sprint ( SN ) to create a more formidable competitor of the American giants of telecommunications Verizon ( VZ.N ) and AT & T ( TN ]) – said the multi-year supply agreement with Nokia will provide the first 5G services nationwide.

The T-Mobile award is decisive for Finland's Nokia, whose results have been undermined by slowing demand for existing 4G networks and investors' doubts about the possibility of seeing 5G contracts increase this year.

5G networks promise to offer faster speeds to users of mobile phones and make networks more responsive and reliable. the possible development of a new industrial automation, medical monitoring, a driverless car and other professional uses.

But short – lived telecom operators around the world have been reluctant to engage in commercial upgrades of existing networks, many seeing 5G technology simply as a way to increase incremental capacity instead of new features.

The terms of the agreement call on Nokia to provide a range of 5G hardware, software and services that will allow T-Mobile to capitalize on licensed broadband, broad spectrum coverage of 600 megahertz and capacity Ultra high speed on 28 MHz waves in densely populated urban areas, the companies said.

Nokia will provide T-Mobile with its AirScale radio access platform as well as hardware, software and acceleration services connected to the cloud, they said in a statement.

The network equipment sector, led by three major players – the Chinese Huawei HWT.UL, Nokia and the Swedish Ericsson ( ERICb.ST ), has experienced growth difficulties since the current generation of 4G mobile hardware reached a peak in 2015.