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T-Mobile U.S. and Nokia reach $3.5 billion deal to deliver nationwide 5G services

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Sayantoni Banerjee
Sayantoni Banerjee
Reader, writer and content creator, with an interest in the arts, media and technology. A passionate polyglot and a socially and politically aware individual who stays in tune with the latest social media and cultural trends in order have a global outlook.

On Monday, the world saw the formation of its biggest next generation 5G deal till date, with T-Mobile US (TMUS.O) naming Nokia (NOKIA.HE) to supply it with $3.5 billion in next-generation 5G network gear, according to reports from both the firms, with the solid evidence for the development of a new wireless upgrade cycle.

T-Mobile, the third largest mobile carrier in the U.S., had agreed to merge with Sprint (S.N) in April, in order to build competition for to U.S. telecom giants Verizon (VZ.N) and AT&T (T.N). Now they aim to deliver the first 5G services all over the country with the multiyear supply deal with Nokia.

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For Finland’s Nokia, which was worn down battered by decreasing demand over the years for the existing 4G networks and increasing worries of investors over the profits from 5G contracts, the T-Mobile award is necessary.

5G networks guarantee faster, reliable and more responsive networks, for industrial, medical and business purposes, telecom operators have always been apprehensive about upgrading existing networks to 5G.

The companies stated that the terms of the deal include supply of its AirScale radio access platform as well as cloud-connected hardware by Nokia, software, and services, for T-Mobile to capitalize on licensed airwave, for delivering broad coverage on 600 megahertz spectrum and ultra high-speed capacity on 28 gigahertz airwaves in urban regions with dense traffic.

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