Daily Management Review

Ericsson receives $14B contract from AT&T


Swedish company Ericsson will sell equipment to American telecom giant AT&T Inc. for roughly $14 billion over a five-year period in an effort to create an open radio access network (Open RAN) in the US.

Mike Mozart
Mike Mozart
About 70% of AT&T's mobile traffic will use Open RAN platforms by 2026, according to a joint press statement from the two firms.

Nokia anticipates that the deal will result in a decrease in the percentage of its total revenue that comes from contracts with AT&T over the next two to three years. Contracts with AT&T comprise 5–8% of Nokia's overall sales of mobile network equipment this year.

According to a statement from Nokia, the cost-cutting initiatives that were previously disclosed will somewhat offset the negative effects of AT&T's decision.

source: bloomberg.com