In what it describes as the largest deal financially in its 147 year history, Ericsson confirmed that it has been selected by AT&T to supply 5G Open Radio Access Networks products and solutions to support AT&T’s nationwide Open RAN ambitions in the U.S.
The deal is valued at approximately US$14 billion over five years.
AT&T’s Open RAN plan is for 70% of its wireless network traffic to flow across open-capable platforms by late 2026.
AT&T said it is motivated to accelerate the commercial introduction of Open RAN equipment and open network management solutions from multiple vendors, utilizing purpose-built hardware and virtualized commercial off the shelf (COTS) hardware.
Under the contract, Ericsson will supply:
- The latest generation Ericsson Massive MIMO and remote radios that are hardware-ready for the next generation of open fronthaul technologies. Next generation, Ericsson RAN Compute, which was recently launched.
- Ericsson Cloud RAN solutions that will introduce the shift to Open RAN architecture with open interfaces and disaggregation to enable new partnerships in new areas of the Radio Access Networks. It will also allow AT&T to build RAN SW in a modular way truly building a horizontal connectivity platform.
- Ericsson Intelligent Automation Platform (EIAP) will provide comprehensive multi-vendor, multi technology service management and automation for the AT&T network.
- AT&T and Ericsson will jointly promote and utilize the open EIAP rApp Ecosystem with its marketplace and Software Development Toolkit (SDK) to accelerate rApp development and innovation for AT&T and third party software providers globally.
- Ericsson will utilize its leading position in Open RAN standardization to provide comprehensive support within the AT&T network for O-RAN Alliance SMO interfaces including: O1, O2 and A1 interfaces (in the non-Real-time RIC) and encapsulates the R1 interface between the non-Real-Time RIC and the rApps.
- The gear will be produced at Ericsson’s recently expanded 5G Smart Factory in Lewisville, Texas, in compliance with the Build America, Buy America infrastructure laws Act.
AT&T said it is working with other suppliers, including Fujitsu, Corning, Dell Technologies, and Intel.
Börje Ekholm, President and CEO, Ericsson, says: “High-performance and differentiated networks will be the foundation for the next step in digitalization. I am excited about this future and happy to see our long-term customer, AT&T, choosing Ericsson for this strategic industry shift – moving to open, cloud-based and programmable networks. Through this shift, and with open interfaces and open APIs, the industry will see new performance-based business models, creating new ways for operators to optimise and monetize the network. We are truly proud to be collaborating with AT&T in the industrialization of Open RAN and help accelerate digital transformation in the U.S.”
Chris Sambar, Executive Vice President, AT&T Network, says: “AT&T is taking the lead in open platform sourcing in our wireless network. With this collaboration, we will open up radio access networks, drive innovation, spur competition and connect more Americans with 5G and fiber. We are pleased that Ericsson shares our support for Open RAN and the possibilities this creates for American digital infrastructure.”