Ericsson and AT&T are collaborating in an industry-defining five-year network transformation and digitalization strategic agreement, valued at roughly USD 14 billion, to pioneer the path to programmable and intelligent networks of the future. The deal is the largest financially in Ericsson’s history.
Ericsson will deploy a wide range of Ericsson 5G Open Radio Access Networks products and solutions to support AT&T’s nationwide Open RAN ambitions in the US.
The company will build a 5G network platform for AT&T, utilizing cloud-native technologies built on O-RAN standardized interfaces - with industry scale, cost efficiency, sustainability and high performance top of mind. Through time AT&T and Ericsson will transform this to a cloud-native open network.
Ericsson will utilize its recently expanded 5G Smart Factory in Lewisville, Texas, for production of related infrastructure for the deal. The factory’s products are labelled Made in USA as Ericsson’s facility complies with the Build America, Buy America infrastructure laws Act.
In line with its R&D-investment-led company strategy, Ericsson has developed a broad range of sustainability-centered technology offerings to support its belief that future networks must be increasingly resilient, open, sustainable and intelligent.
The intelligent and programmable capabilities will enable innovation such as rApps, automation and network APIs to be built and exposed and in turn realize the potential that 5G was designed for – creating new monetization opportunities in the process.
Börje Ekholm, President and CEO, Ericsson, says: “High-performance and differentiated networks will be the foundation for the next step in digitalization. I am excited about this future and happy to see our long-term customer, AT&T, choosing Ericsson for this strategic industry shift – moving to open, cloud-based and programmable networks. Through this shift, and with open interfaces and open APIs, the industry will see new performance-based business models, creating new ways for operators to optimise and monetize the network. We are truly proud to be collaborating with AT&T in the industrialization of Open RAN and help accelerate digital transformation in the US.”
Chris Sambar, Executive Vice President, AT&T Network, says: “AT&T is taking the lead in open platform sourcing in our wireless network. With this collaboration, we will open up radio access networks, drive innovation, spur competition and connect more Americans with 5G and fiber. We are pleased that Ericsson shares our support for Open RAN and the possibilities this creates for American digital infrastructure.”
Ericsson solutions comply with the company’s commitment to reduce both supply chain emissions and power consumption by 50% by 2030.