DALLAS, Dec. 4, 2023
/CNW/ -- 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 help 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."
"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.," said Börje Ekholm, President and
CEO, Ericsson.
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 America 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.1 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 Ericsson.
1 Based on nationwide GWS drive test data. GWS
conducts paid drive tests for AT&T and uses the data in its
analysis. AT&T 5G requires compatible plan and device. 5G not
available everywhere. Go to att.com/5Gforyou for details.
*About AT&T
We help more than 100 million U.S. families, friends and
neighbors, plus nearly 2.5 million businesses, connect to greater
possibility. From the first phone call 140+ years ago to our 5G
wireless and multi-gig internet offerings today, we @ATT innovate
to improve lives. For more information about AT&T Inc.
(NYSE:T), please visit us at about.att.com. Investors can
learn more at investors.att.com.
About Ericsson:
Ericsson enables communications service providers and enterprises
to capture the full value of connectivity. The company's portfolio
spans the following business areas: Networks, Cloud Software and
Services, Enterprise Wireless Solutions, Global Communications
Platform, and Technologies and New Businesses. It is designed to
help our customers go digital, increase efficiency and find new
revenue streams. Ericsson's innovation investments have delivered
the benefits of mobility and mobile broadband to billions of people
globally. Ericsson stock is listed on Nasdaq Stockholm and on
Nasdaq New York. www.ericsson.com
© 2023 AT&T Intellectual Property. All rights reserved.
AT&T and the Globe logo are registered trademarks of AT&T
Intellectual Property.
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SOURCE AT&T