Ericsson and Verizon have announced a landmark $8.3 billion, multi-year agreement, expanding their long-standing partnership. The deal will see Ericsson deliver industry-leading 5G solutions, including Massive MIMO, Ericsson Cloud RAN and software to strengthen and expand Verizon 5G network in the US.
“This is a significant strategic partnership for both companies and what we’re most excited about is bringing the benefits of 5G to US consumers, enterprises and the public sector. We’re looking forward to working with Verizon to leverage solutions like Cloud RAN and our Street Macro, adding depth and versatility to 5G network rollouts across the US,” said Niklas Heuveldop, President and Head of Ericsson North America.
Driving widespread adoption of 5G
Under the $8.3 billion USD agreement, Verizon will deploy Ericsson's 5G MIMO C-band, low-band and mmWave solutions to enhance and expand Verizon's 5G Ultra Wideband coverage, network performance and user experience. Ericsson's technology solutions, including Massive MIMO, Ericsson Spectrum Sharing and Ericsson Cloud RAN, complement the high-performing Ericsson Radio System portfolio to support 5G services.
“With this new agreement, we will be able to continue driving innovation and widespread adoption of 5G,” says Kyle Malady, Chief Technology Officer for Verizon. “We are pleased to continue this work through our long-standing relationship with Ericsson,” Malady continued.
Nationwide build-out of 5G
In 2020, Verizon was the first communications service provider to receive a commercial 5G mmWave Street Macro base station from Ericsson's award-winning new state-of-the-art US smart factory in Lewisville, Texas. Ericsson has stated that it is committed to building and accelerating the nationwide build-out of 5G across the US, using its portfolio of 5G technology, which spans networks, digital services, managed services, and emerging business.
As well as announcing the new deal with Verizon, Ericsson has also said that its second quarter net profit had jumped by 51 percent. However, the company noted a sharp decline in sales in China, after rival Huawei was barred from selling its equipment in Sweden.
"It is prudent to forecast a materially lower market share in Mainland China for Networks and Digital Services as the earlier decision to exclude Chinese vendors from the Swedish 5G networks might influence market share awards," explained Ericsson's chief executive Borje Ekholm, via an interview in The Economic Times.