TIDM61QS
RNS Number : 7010V
Telefonaktiebolaget Lm Ericsson
05 December 2023
AT&T to Accelerate Open and Interoperable Radio Access
Networks (RAN) in the United States through new collaboration with
Ericsson
AT&T today announced plans to lead the United States in
commercial scale open radio access network (Open RAN) deployment.
This industry-leading move, in collaboration with Ericsson, will
further the telecommunications industry efforts and build a more
robust ecosystem of network infrastructure providers and suppliers.
AT&T's spend could approach roughly $14 billion over the 5-year
term of the contract with Ericsson.
AT&T's Open RAN plan is for 70% of its wireless network
traffic to flow across open-capable platforms by late 2026. The
company expects to have fully integrated open RAN sites operating
in coordination with Ericsson and Fujitsu, starting in 2024. This
move away from closed proprietary interfaces will enable rapid
scaling and management of mixed supplier hardware at each cell
site. Beginning in 2025, the company will scale this Open RAN
environment throughout its wireless network in coordination with
multiple suppliers such as Corning Incorporated, Dell Technologies,
Ericsson, Fujitsu and Intel.
AT&T's and Ericsson's multiyear joint commitment to Open RAN
deployment comes at a pivotal moment in the 5G innovation cycle.
This move to an open, agile, programmable wireless network
positions AT&T to quickly capitalize on the next generation of
wireless technology and spectrum when it becomes available. These
innovative technologies will enable lower-power, sustainable
networks with higher performance to deliver enhanced user
experiences. Ericsson's open architecture will provide a foundation
and springboard for developers driving innovation through open and
programmable networks and bringing new suppliers into the industry.
This will foster modernization and competition in the U.S. wireless
equipment market.
The company expects that increased competition in the U.S. RAN
market will yield more innovation and greater efficiencies.
Committing to Open RAN with its suppliers deploying open hardware,
migrating to cloud RAN, and introducing 3rd party radios leads to
more flexibility in choosing equipment, lower network costs and
improved operational efficiencies. This cutting-edge open
management approach to building the network will enable the company
to continue to invest in its fast-growing broadband network.
"AT&T is taking the lead in open platform sourcing in our
wireless network," said Chris Sambar, Executive Vice President,
AT&T 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."
Börje Ekholm, President and CEO of 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 partner, 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 monetize the network. We are truly proud to be partnering with
AT&T in the industrialization of Open RAN and help accelerate
digital transformation in the U.S."
Ericsson will leverage its USA 5G Smart Factory in Lewisville,
Texas in the manufacture of 5G equipment for this contract. Opened
in 2020, the factory is highly automated and efficient, and is
fully powered by renewable electricity. The Smart Factory recently
completed an expansion, bringing its production floor to more than
107,000 square feet. The state-of-the-art 5G smart factory produces
next generation 5G and Advanced Antenna System radios for
Ericsson's U.S. customers. Ericsson also recently became the first
mobile infrastructure provider to achieve compliance with the
infrastructure law's Build America, Buy America provisions. The
factory's products are labeled Made in USA as Ericsson's facility
complies with the Build America, Buy America infrastructure laws
Act.
AT&T is one of the largest infrastructure investors in the
United States across both wireless and broadband fiber. The
commitment to Open RAN is a key part of AT&T's strategy to
provide the seamless connectivity America needs. With owner's
economics in both wireless and fiber, AT&T aims to become the
largest, fastest growing converged fiber company with a modern,
competitive wireless network. '
AT&T will use this new collaboration with Ericsson to
enhance its wireless network in North America and expand the most
reliable 5G network. The expected spend under the Ericsson contract
is below what the company expects to spend for wireless capital
expenditure over the next 5 years. Given the interdependence
between fiber and wireless, and the increasing desire for customers
to have one connectivity provider across fixed broadband and
wireless, the company sees economically attractive opportunities to
expand its fiber footprint in the coming years as well.
This is a joint press release with AT&T
FOR FURTHER INFORMATION, PLEASE CONTACT
Contact person
Peter Nyquist, Head of Investor Relations
Phone: +46 705 75 29 06
E-mail: peter.nyquist@ericsson.com
Additional contacts
Stella Medlicott, Senior Vice President, Marketing and Corporate
Relations
Phone: +46 730 95 65 39
E-mail: media.relations@ericsson.com
Investors
Lena Häggblom, Director, Investor Relations
Phone: +46 72 593 27 78
E-mail: lena.haggblom@ericsson.com
Alan Ganson, Director, Investor Relations
Phone: +46 70 267 27 30
E-mail: alan.ganson@ericsson.com
Media
Ralf Bagner, Head of Media Relations
Phone: +46 76 128 47 89
E-mail: ralf.bagner@ericsson.com
Media relations
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
Forward-looking statements
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performance and results of operations, business plans, objectives,
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- The expected demand for our existing and new products and
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including research and development expenditures
- The ability to deliver on future plans and to realize
potential for future growth
- Technology and industry trends including the regulatory and
standardization environment in which we operate, competition and
our customer structure.
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This is information that Telefonaktiebolaget LM Ericsson is
obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication, through the agency
of the contact person set out above, at 23:00 CET on December 4,
2023.
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END
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