AT&T Taps Ericsson for $14 Billion Network Revamp, Ousting Nokia

AT&T is set to upgrade its US wireless network in a project that could cost nearly $14 billion over the next five years.

Ericsson has secured the deal to modernize AT&T's network, representing a significant win over its rival, Nokia.

This move is seen as a blow to Nokia, which had previously handled about one-third of AT&T's business.

Ericsson, already responsible for two-thirds of AT&T's US network, will build the network using open architecture, allowing different vendors to compete for components.

The open architecture provides more flexibility in the network, fostering creativity, according to Chris Sambar, AT&T's Executive Vice President of Network.

Ericsson's shift to open radio access network (RAN) technology is paying off with a potential contract valued at almost $14 billion over five years.

Nokia expressed disappointment with the decision and mentioned potential delays in achieving double-digit operating margins.

AT&T expects various companies to compete to supply equipment for the network, making it a leader in commercial-scale Open RAN technology.

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