8

AT&T’s $14 Billion Ericsson Deal Heralds Open Phone Networks

 5 months ago
source link: https://finance.yahoo.com/news/t-14-billion-ericsson-deal-190410145.html
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.

AT&T’s $14 Billion Ericsson Deal Heralds Open Phone Networks

Todd Shields, Anna Edgerton and Thomas Seal
Tue, December 12, 2023, 4:04 AM GMT+9·4 min read
39fd1c0078b29c56d2f0603c84809bf7

(Bloomberg) -- AT&T Inc.’s choice of Ericsson AB for a $14 billion revamp of its sprawling mobile network marks a coming of age for flexible wireless technology that promises to bring competition to infrastructure markets dominated by two companies.

Most Read from Bloomberg

The technology that Ericsson plans to use for the rebuild has already been adopted by mobile companies such as Rakuten Group Inc. and Dish Network Corp. Still, AT&T is the biggest telecommunications firm to commit to open radio access network infrastructure, or Open RAN.

Open RAN first gained prominence when countries including the US, Australia and the UK moved to ban Chinese tech giant Huawei Technologies Co. as relations with Beijing deteriorated. The technology allows more vendors to contribute than previous, when heavily integrated solutions were dominated by just two companies outside of China: Ericsson and Nokia Oyj.

“AT&T as a behemoth moving in this direction is a huge signal,” said Diane Rinaldo, executive director of the Washington-based lobbying group Open RAN Policy Coalition. “It gives credence to the readiness of the technology.”

Read More: Ericsson Beats Nokia to $14 Billion AT&T Network Build Deal

Most networks today are built by single vendors, and gear from other companies isn’t compatible. Open RAN networks aim to be ruled by software, so any company can offer its gear as long as the device meets publicly disclosed technical standards, driving competition and cost savings.

In 2021, the UK and its mobile networks set a target of 2030 to carry 35% of data over Open RAN equipment. One ally in the effort has been Meta Platforms Inc. founder Mark Zuckerberg, who helped found the Telecom Infra Project, an industry group that helps develop the interoperable technology.

Recommended Stories

About Joyk


Aggregate valuable and interesting links.
Joyk means Joy of geeK