T-Mobile Awards 3G Deals
NOVEMBER 27, 2006
As anticipated, Ericsson AB and Nokia Corp. have been chosen by T-Mobile USA to provide the infrastructure for its 3G network rollout. (See Ericsson Wins T-Mobile USA Deal and Nokia Wins Deal.) The two Scandinavian firms had been earmarked as the most likely winning vendors after T-Mobile snapped up 120 new wireless spectrum licenses in September's AWS (Advanced Wireless Services) spectrum auction. Both vendors say their deals are "contingent upon the award of AWS spectrum to T-Mobile USA," an award that is expected soon from the U.S. Federal Communications Commission (FCC) . (See T-Mobile Confirms 3G Plans and Big Guns Dominate Spectrum Auction.) T-Mobile USA's parent, German giant Deutsche Telekom AG (NYSE: DT - message board), which spent $4.2 billion winning the AWS licenses, has said it will spend €2.1 billion ($2.75 billion) on building out its UMTS/3G network over the next three years. The carrier will deploy the latest UMTS access infrastructure based on HSPA (high-speed packet access) technology from both vendors. Lehman Brothers analyst Jeff Kvaal notes that T-Mobile USA has already started its network upgrade from GSM to 3G, with its New York deployment, part of Ericsson's contract, already well advanced. In 3G rollout, the carrier is behind some of its bigger rivals -- such as Cingular Wireless LLC , Sprint Nextel Corp., and Verizon Wireless , but T-Mobile's management says timing of the launch may provide benefits such as cheaper handsets as well as cheaper infrastructure, says Kvaal. (See T-Mobile 3G Is Imminent.) Continued at: lightreading.com
"Ericsson is just Ericsson –- no one can beat them on a 3G RAN [radio access network] contract if Ericsson wants to win it."
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