Ericsson is has signed a multi-year deal with Verizon under which it will help the latter to expand its 5G network in the United States. The deal is worth USD 8.3 billion and is the biggest ever for the Swedish telecom company. As part of the deal, Verizon will use the technology solutions and equipment of Ericsson to expand ultra-wideband 5G coverage. Verizon will use Massive MIMO along with the spectrum and cloud radio access network of Ericsson. Ericsson has leading software technology and Verizon hopes that it will the company to enhance the speed and performance of the 5G networks. The huge infrastructure of Ericsson can be helpful in accelerating the deployment of 5G networks too.
President of Ericsson North America Niklas Heuveldop said that the deal is a significant strategic partnership for both companies. “It is going to be beneficial for both the companies. The thing that excites us most about the deal is that we will bring the benefit of 5G networks to the consumers of the United States. We are looking forward to working with Verizon,” Niklas said. Ericsson and Verizon have a long history of working closely in partnership with each other. In 2020, Verizon was the first service provider to which Ericsson provided a commercial 5G base station from its smart factory in Lewisville.
Verizon is having tough competition with rivals AT&T and T-Mobile. In a bid to keep itself ahead, Verizon wants to rapidly expand its 5G access. To ensure it, Verizon pledged around USD 45.5 billion in a C-band auction to secure some more mid-band spectrum coverage. Verizon chief technology officer Kyle Malady said that the new agreement will help the company to drive innovation and ensure widespread adoption of 5G. The deal is also good news for Ericsson and comes at a time when the company is facing a tough situation in China.
