- A multi-year arrangement worth $8.3 billion USD deepens a long-standing collaboration.
- To improve and grow Verizon’s world-class 5G network, Ericsson will provide industry-leading 5G technologies such as Massive MIMO, Ericsson Cloud RAN, and software.
The Swedish business will provide solutions like as Massive MIMO, Cloud RAN, and software to help Verizon enhance and grow its 5G network.
Ericsson has secured a major multi-year agreement to deliver 5G solutions to Verizon’s world-class 5G network in the United States.
Verizon will deploy Ericsson’s 5G MIMO C-band, low-band, and millimetre wave (mmWave) solutions to enhance and expand Verizon’s 5G Ultra Wideband coverage, network performance, and user experience under this USD8.3 billion agreement, the largest in the Swedish company’s 145-year history.
Ericsson’s technological solutions for 5G services, including as Massive MIMO, Spectrum Sharing, and Cloud RAN, are part of the high-performance Ericsson Radio System portfolio.
Ericsson’s industry-leading software functionality delivers the speed and performance that end customers demand from 5G networks.
“This is a major strategic collaboration for both companies,” says Niklas Heuveldop, President and Head of Ericsson North America. What excites us the most is delivering the benefits of 5G to US consumers, businesses, and the public sector. We are excited to collaborate with Verizon to use technologies like as Cloud RAN and our Street Macro, which will bring depth and adaptability to 5G network rollouts across the United States.”
Verizon is the first communications service provider in the world to receive a commercial 5G mmWave Street Macro base station from Ericsson’s award-winning state-of-the-art smart factory in Lewisville, Texas, in 2020.
“With this new arrangement, we will be able to continue pushing innovation and wider adoption of 5G,” said Kyle Malady, Verizon’s Chief Technology Officer. We are delighted to be able to continue this work through our long-standing partnership with Ericsson.”
The agreement comes at a critical juncture for Ericsson, which is suffering headwinds in its China business due to political tensions between Sweden and China.
Sweden has blacklisted rival Huawei due of security concerns, and Ericsson is facing repercussions, with China threatening similar action against the Scandinavian country.
Ericsson’s recent second-quarter earnings highlighted the consequences of the strain, as the firm reported its first quarterly sales decrease in at least three years. The company announced total revenues of 54.9 billion Swedish krona (USD6.3 billion), a 1% down from 2020 levels and less below market expectations of SK 57.3 billion. Sales in China fell over 50% to SK 2.5 billion.
With the events in China, Ericsson’s Verizon agreement has become critical, and Carl Mellander, chief financial officer, told MarketWatch: “The single most significant thing is the commitment that Verizon demonstrates to us, and the trust — because it’s a five-year deal, and it’s extremely substantial.”