AT&T drops Nokia, selects Ericsson for Open RAN telecom network project in the US
https://wire19.com/att-selects-ericsson-for-open-ran-telecom-network-project-in-the-us/
4 replies (most recent on top)
Bet Hansy is regretting that Samsung deal now. VZ BoD should be paying more attention to Hans cr-ppy leadership
Sell Nokia Stock, Citi Says. It Remains ‘a Value Trap.’
Citi analyst Andrew Gardiner downgraded Nokia to Sell from Buy and slashed his price target on shares to €2.70, or about $2.95, from €4.10 in a Thursday report. The company’s American depositary receipts fell 4% to $3.24 in recent Friday trading.
US is the largest revenue inlet for Nokia. This loss will hit them harder. To all Nokia employees.. brace yourself harder this time. It could be more than 14k reductions needed to save Nokia.
In a significant move towards technological advancement, AT&T has announced its collaboration with Ericsson to develop a cutting-edge telecom network utilizing Open RAN technology. This groundbreaking project aims to cover 70% of AT&T’s wireless traffic in the United States by late 2026.
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.”
AT&T’s decision to exclusively employ Ericsson for this venture underscores a strategic effort to foster innovation and strengthen the ecosystem of network infrastructure providers and suppliers.
Ericsson will leverage its 5G Open Radio Access Networks products and solutions to support AT&T’s nationwide Open RAN ambitions. Open RAN technology is poised to revolutionize the telecommunications landscape by significantly reducing costs for operators through the utilization of cloud-based software and equipment from multiple suppliers, departing from the reliance on proprietary solutions.
AT&T and Ericsson plan to build a 5G network platform utilizing cloud-native technologies based on Open RAN standardized interfaces. The long-term goal is to transform this platform into a cloud-native open network, ensuring industry-scale efficiency, cost-effectiveness, sustainability, and high performance. Ericsson’s recently expanded 5G Smart Factory in Lewisville, Texas, will play a crucial role in producing the necessary infrastructure for the project.
The five-year contract is anticipated to amount to approximately $14 billion, the largest financially in Ericsson’s history.
AT&T recognizes economically attractive opportunities to expand its fiber footprint in the coming years, given the increasing demand for a unified connectivity provider across fixed broadband and wireless services.
This strategic move positions AT&T as a key player in the Open RAN landscape and solidifies its status as one of the largest infrastructure investors in the United States. AT&T’s commitment to Open RAN aligns with its broader strategy to become the largest and fastest-growing converged fiber company with a modern, competitive wireless network.
However, the deal signifies a setback for Nokia, as Ericsson is poised to become AT&T’s largest supplier, gradually overtaking Nokia’s market share. AT&T’s decision could have significant implications for Nokia’s revenue and market share, with AT&T accounting for 5-8% of Nokia’s mobile networks’ net sales in 2023. While Nokia suggests cost-cutting initiatives may partially offset the impact, it acknowledges that AT&T’s decision could potentially delay the company’s goal of achieving a double-digit operating margin in its mobile networks division by up to two years.