US-based telecom operator Verizon has selected Sweden-based Ericsson to supply networking equipment for its 5G services.
Verizon that competes with AT&T, T-Mobile and Sprint, will deploy the pre-standard 5G commercial radio network and the 5G Core network in select markets in second half of 2018.
Ericsson did not reveal the financial details of the 5G equipment contract. This is one of the major 5G deals in the global telecom industry.
Ericsson has signed the much expected 5G deal competing with Finland-based Nokia, China-based Huawei and ZTE. It’s not known whether Verizon will be selecting other top telecom equipment makers as well for the nationwide rollout of 5G networks in 2018.
Fredrik Jejdling, head of Business Area Networks, Ericsson, was instrumental in bagging the 5G network deal from Verizon.
“5G will change the way we work, interact, learn and play. Through our work with Ericsson, we are creating a clear roadmap and building a ecosystem that will enable us to maximize the potential of 5G,” said Ed Chan, SVP Technology Strategy and Planning for Corporate Networking and Technology, Verizon.
5G networks will account for more than 40 percent of all wireless network infrastructure spending by the end of 2025 against 5 percent by 2020, according to analyst firm SNS Research.
Global 2G, 3G and 4G wireless infrastructure revenues will dip by 4 percent in 2017 from $56 billion in 2016, due to a decline in standalone macrocell RAN infrastructure spending.
However, driven by investments in HetNet infrastructure and 5G NR (New Radio) rollouts – beginning in 2019, the market is expected to achieve an estimated CAGR of 2 percent between 2017 and 2020.
Ericsson and Verizon have already conducted fixed-wireless 5G trials using mmWave spectrum in multiple cities and residential neighborhoods with different geographies and housing densities. This has been a critical step in Verizon’s plan to deploy fixed wireless broadband network.
Communications Service Providers (CSPs) can grow revenues and enhance profits with dynamic end-to-end (E2E) network slicing in 5G.
Research firm Strategy Analytics examined examples from UK-based BT, US-based Verizon and other operators, and said network slicing will enable CSPs to offer Network as a Service (NaaS), with new Mobile Virtual Network Operator (MVNO) or partner models for verticals and specific segments/use cases.
Baburajan K
